Online spending is rising, with over 2 billion people buying products or services online. Frost & Sullivan found that eCommerce in the United States (US) is projected to reach $700 billion by 2023. The risk of fraudulent activities in eCommerce propels merchants to seek fraud prevention strategies in-house or in collaboration with external parties.
These vendors will mitigate fraud and ensure that the customers’ purchase experience is not marred by well-meaning but poorly executed fraud prevention tactics.
Frost & Sullivan’s latest white paper, An (Un)Necessary Tradeoff: Fraud Prevention Strategies Should Enhance, not Compromise, Customer Experience, discusses how eCommerce merchants can gain superior data efficacy and organizational visibility and optimize their customer experiences by partnering with an expert. This white paper also highlights challenges for merchants in customer verification and identifies cybersecurity solutions to mitigate the risks of online fraud.
“In-house systems are typically dependent on manual reviews, which are time-consuming, difficult to scale, costly, and prone to human error,” said Roberta Gamble, Partner and Vice President at Frost & Sullivan. “Using a vendor with a large and thorough database can be a better option as these providers can aggregate customer data across multiple retailers. A retail customer may have a digital history that can be verified against this database, even if the retailer itself has never interacted with the customer.”
“Collaborating with a solution provider such as Ekata helps businesses create seamless customer experiences and prevent fraud,” noted Varun Kumar, Vice President, Engineering at Ekata. “Our sophisticated data science and machine learning solution, the Ekata Identity Engine™, combines two proprietary datasets, the Ekata Identity Graph and the Ekata Identity Network. These datasets are built around core identity attributes that are transformed into unique and valuable insights that enable businesses to accurately make risk decisions about their customers.”
Online retailers that use advanced customer verification strategies can:
- Reduce time and friction in the customer purchase process, thus enhancing the overall customer experience.
- Increase revenues by lowering instances of erroneous declines of legitimate purchases.
- Decrease risks and costs by reducing reliance on expensive, error-prone, and time-consuming manual reviews.
- Improve transaction security and data precision.
SOURCE Frost & Sullivan