Digital Identity: Identifying Devices to Prevent E-Commerce Fraud

Preventing fraud is a real issue for retailers, but in many cases, those efforts are damaging their reputation with customers, and even costing legitimate sales. When legitimate credit card transactions and new customers onboarding are incorrectly tagged as potentially fraudulent, it creates a disappointing consumer experience, adds extra steps to completing the sales, and increases the likelihood customers will abandon the processes and buy somewhere else.

Retailers want happy customers, and happy customers are ones who have minimal friction in their buying experiences. Companies still relying primarily on knowledge-based authentication (KBA) and personally identifiable information (PII) to assess fraud risk, however, are less likely to achieve that goal. Not only are KBA answers easy for fraudsters to find and exploit, but the process also interrogates a consumer about their own identity, which many find intrusive and alienating. Instead, these retailers should be using behavioral-related data to identify and fast-track the good customers, and only challenge the suspicious ones when they’re making payments or managing their account.

Download this Retail Dive Playbook to learn how more precise fraud detection and less time spent on interrogating identity helps create the frictionless experience customers want. This in turn increases overall customer satisfaction and makes it more likely they’ll return in the future for more sales.