Defeat Fraud: How to Deliver Continuous Protection Across the Entire Customer Lifecycle

Fraud has always been insidious, but modern fraudsters have more sophisticated techniques than their predecessors. Today’s on-demand, instant-access world is a veritable playground for bad actors that use advanced tools in their arsenals to infiltrate customer accounts and impersonate good customers. 

As customers embrace an omnichannel experience with businesses, the opportunities for fraud to occur multiply exponentially. It’s no longer enough to simply rely on one-time risk assessment at the point of entry, such as a log-in or payment transaction; now, businesses must take proactive steps to protect the entire customer journey across all channels and through the entire customer account lifecycle. 

Common Types of Fraud during the Customer Account Lifecycle

Fraud can occur at any time during the customer lifecycle, but fraudulent activities generally occur in stages.

• Stage One: Fake Accounts – Fraudsters use bots or human-operated farms to mass-register fake accounts to commit fraud. For an idea of the scope of the problem, consider that Facebook removed 5.4 billion fake accounts in 2019 alone. 
• Stage Two: Account Takeovers – Fraudsters use credential stuffing, phishing, and bot attacks to compromise accounts. Year over year, account takeovers are increasing at a rate of 31%.
• Stage Three: Promotion Abuse – Organized fraudsters are taking advantage of sign-up bonuses, coupons, gift cards, promo codes, referral bonuses, and more to bilk good customers out of well-earned promotional benefits and companies out of millions of dollars. 
• Stage Four: Payment Fraud – Stolen credit cards, card skimming, chargebacks, and gift card fraud are all tricks bad actors use to perpetrate fraud against honest businesses and consumers.  Over three-quarters of businesses have been victimized by payment fraud.
• Stage Five: Shipping Fraud – Digital shipping fraud occurs when fraudsters use either fake or stolen credentials to pose as customers and then re-route scheduled deliveries to their own addresses. As more consumers adopt online shopping as a preferred method of acquiring goods, shipping fraud will likely continue to increase in frequency.  
• Stage Six: Content Fraud – Those with ill intent create user-generated content that is abusive, fraudulent, or deceptive. Such content erodes customer trust and causes considerable reputational damage to brands, ultimately leading to customer churn.

How to Provide Complete Protection throughout the Customer Lifecycle

The time for point solutions for fraud prevention and detection has passed. Organizations today need a more holistic approach to fraud prevention and detection, one that encompasses the entire customer lifecycle. 

An effective fraud solution should be able to detect fraudulent activity in real time, enabling rapid decision-making that prevents fraud before it can occur. It should include functionality for bot detection, device identification, behavior analytics, and machine learning. Further, it should provide proactive, continuous protection, not simply one-off risk assessments at particularly vulnerable single points of entry.

The DataVisor Difference

DataVisor delivers a comprehensive fraud and risk management platform that protects organizations from all types of fraud at every stage of the customer lifecycle.  Our patented unsupervised machine learning (UML) technology and deep-learning algorithms take a proactive approach to fraud detection, identifying previously unknown patterns for rapid decision-making and real-time fraud prevention. 

Combined with an advanced rules engine powered by AI-rich features, device intelligence, advanced bot detection, advanced analytics and case management, DataVisor delivers the only fraud and risk management platform for continuous protection throughout the customer account lifecycle. To learn more about complete customer account lifecycle protection, download The Dummy Handbook on Account Protection today.