Forrester Consulting: How Your Peers are Balancing Integrated Identity Verification in the Contact Center
If a business doesn’t invest enough in fraud prevention, it opens itself up to financial losses and reputational damages as their name gets blasted through the press. But if a business leans too heavy on tightening fraud prevention, the consumer experience will decline significantly and consumer satisfaction rates will drop significantly, leading to lost consumers. According to a
Neustar wanted to hear directly from industry leaders regarding their current state of fraud prevention, challenges, and the effectiveness of various account takeover fraud mitigation techniques. As the leader in identity verification, we were curious to dig deep into the offline, online, and device-based identity verification (IDV) methods firms deploy to tell legitimate customers’ identity from those who are seeking to do harm or falsify intent. So, in October 2018, Neustar commissioned Forrester Consulting to conduct a survey of 204 decision-makers in fraud management, authentication, and customer experience to explore fraud mitigation and consumer friction with integrated identity verification.
The results were telling. Forrester found that “while many businesses are overconfident in their ability to protect themselves from fraud without overburdening consumers, businesses expanding an integrated identity verification strategy (employing a combination of offline, online, and device-based capabilities) are seeing differentiated success.”
Based on the results from the survey, Forrester reported that businesses that are expanding their integrated IDV and putting their customers are the center of decision making are more coordinated and effective in their authentication strategy overall, compared to other businesses in the survey, allowing them to get more out of each method they use. By correctly implementing, and seeking to expand, an integrated IDV strategy, each individual capability is better at identifying and authenticating customers across channels than methods implemented on their own.
“Businesses are rushing to combine a broad range of integrated identity verification strategies, but they aren’t harmonizing them together for the best possible consumer experience,” indicated Forrester. As a result, 62% of businesses surveyed report that they are challenged by low customer satisfaction and/or an end-user experience process that is too complicated, resulting in poor customer experience. Meanwhile, nearly half of businesses report that they’re challenged by a high number of false accepts (i.e., the wrong person is accepted mistakenly), none of which is good for business.
Here are some additional key findings:
- Businesses are struggling to increase fraud security and improve customer experience simultaneously. With ID theft on the rise and company revenue at stake, reducing or preventing fraud has become a high or top priority for nearly 70% of businesses. However, customer experience remains paramount to competitive digital business. Many businesses find it hard to prioritize security without deteriorating user experience.
- Outdated and complicated IDV methods have led to customer frustration. The race to outpace fraudsters has led some businesses to hastily adopt an IDV approach that is both over-reliant on insecure forms of IDV, as well as burdensome on the user. As a result, 62% of firms report that they’re challenged by low customer satisfaction and/or an end-user experience process that is too complicated, resulting in poor customer experience.
- Firms expanding “integrated IDV” are more customer-centric and have more effective IDV overall. While 91% of firms have implemented a combination of offline, online, and device-based capabilities, only 49% firms are actively expanding current capabilities in all three categories. We found this group shows significant maturity in both customer-centricity of fraud strategy and the overall effectiveness of their strategy to reduce fraud.
The great news is that you are in the right place to help implement the integrated identity recommendations by Forrester. For the past 20+ years, Neustar’s unique capabilities have made us the leader in the field of identity resolution, specifically focused on implementing a combination of online, offline, and device-based data approach for business. Neustar’s “unstealable” device-based attributes, derived from our unique relationship with telecom companies and management of over 90% of caller ID, provides the “integrated IDV” approach that the Forrester paper recommends to get the most from your fraud strategy while improving the customer experience. Because Neustar ties identity to device using authoritative online, offline, and device-based data, our clients can identify legitimate consumers and transactions faster and more accurately, reducing friction and improving customer satisfaction.
Download the full study to access Forrester Consulting’s key recommendations and learn how popular IDV approaches fall short on security and customer security, and why expanding integrated IDV is a hallmark of mature fraud organizations.