Does There Have to Be a Tradeoff Between Fraud Prevention and Customer Experience?

There’s a common belief that companies cannot increase fraud prevention without the tradeoff of creating more friction for the end-user, which, in turn, leads to a decrease in the customer experience. 

This may have been true at one time. But today’s fraud prevention technology allows companies and customers alike to have their cake and eat it, too.

With advanced fraud solutions like DataVisor and its use of machine learning, frictionless fraud prevention is reimagined. Here’s how we’re changing the face of fraud detection for the better:

Create a Seamless Customer Experience Across Channels

Customers want to use the channel of their choice when doing business, whether it’s applying for a loan online or getting customer support through chat. Regardless of channel, businesses can create a consistent customer experience by turning every interaction into a single thread of truth. 

Datavisor’s holistic platform supports multiple use cases across channels and uses AI and automation to easily consolidate customer data, find connections, and gain a clearer picture of every interaction. This way, customers can select the channel of their choice and companies can feel confident in the identity of the customer.

Go Beyond Knowledge-Based Authentication

Complex password rules and security questions are the standards of knowledge-based authentication, and they’re not completely fail-proof. Legitimate users often forget passwords or don’t remember answers to pre-defined security questions, and fraudsters can easily find answers on the dark web to fool knowledge-based authentication.

This creates a tremendous amount of friction when users have to reset passwords or update their questions, not to mention how much it slows down the process. Despite 51% of consumers saying they’d manage whatever security hurdles a company imposed, the majority also said they’d abandon a transaction that took too long.

It’s time to go beyond knowledge-based authentication. A healthy mix might include device IDs, temporary text message codes, and behavioral biometrics. Datavisor looks at these and other data points on a large scale in real-time to further authenticate users.

Use Comprehensive Data-Driven Fraud Detection

When you know more about your customers and can act on that knowledge quickly, you are better able to maintain your users’ attention long enough to complete transactions. 

The secret to this lies in data visualization. For example, Datavisor’s Case Management product offers one-click functionality so you can visualize why a case was flagged. It uses Datavisor’s linkage analysis to show how users and data are connected. Activities that are seemingly harmless on the surface might actually be part of a larger, interconnected crime ring or organized attack conducted by bots or emulators. 

Using comprehensive data allows companies to gain access to the fuller picture behind transactions and requests. In turn, this lowers the numbers of false positives and increases access for good actors without allowing bad actors to pass.

Putting Customer Experience and Fraud Detection First

While customers love knowing a company takes their data and security seriously, they also don’t want to be inconvenienced. Finding the balance between both worlds is critical for businesses that want to earn revenue and loyalty. 

To learn more about how Datavisor is eliminating the tradeoff between fraud prevention and customer experience, download our new ebook: Fight Fraud in a Mobile-First World with Device Intelligence.