April 20, 2018
April 18, 2018
April 13, 2018
Posted December 19, 2017
Losses from payment fraud are expected to cost businesses more than $6 billion by 2018. In an effort to protect themselves, companies are often tempted to burden their customers with additional security measures.
But, while the fear of payment fraud is certainly justified, innovative technologies can help organizations mitigate this threat without alienating customers—leading to secure business growth.
Paying Without Paying?
In today’s digital economy, the process of paying for goods and services has never been easier, and consumers clearly approve.
Amazon’s 1-Click service became the gold standard for quick and easy online checkout. Select the perfect item or Christmas gift for that special someone and, with a single click, the order is paid for and on its way. And, for its mobile shoppers, Amazon has updated 1-Click service with a new swipe feature.
And, just this year alone, an estimated 86 million people have used Apple Pay to make everyday purchases, such as getting their morning coffee. Add in payment options from Samsung and Android, and the total number of customers using this “tap and go” method of payment is expected to exceed 500 million by 2021.
Then, there’s Uber, which has perfected the ultimate in payment ease. After your Uber ride gets you to your destination, you simply exit the vehicle and get on with our day. No wallet. No credit card. No cash.
By storing your credit card or other payment information in their system when you opened the account, these businesses have eliminated steps in the payment process, giving customers a more streamlined and enjoyable experience.
Google is trying to make it even easier for its user base. Its new Pay with Google service allows users to tap into any payment card they have on file, rather than those they’ve specifically saved to Android Pay.
So, why are some digital businesses hesitant to adopting similar types of payment processes?
When I speak to people about this, I inevitably hear one of two responses: “How do you ensure online security without degrading the customer experience?” or “How do you choose between customer experience and security?”
Unfortunately, this antiquated notion of having to sacrifice the customer experience to secure online transactions is still out there. After all, these businesses are trying to protect themselves from what seems like an endless wave of cyberattacks.
Just this past quarter, the ThreatMetrix Digital Identity Network detected a record 171 million attacks – and saw that more than 5 percent of all payments tracked in the Network turned out to be fraudulent.
Thankfully, there is a solution that can help put all these fears to rest.
Safe and Sound
Custom-fit for the digital economy, digital identity is the answer these cautious businesses have been searching for.
In the wake of continuous corporate data breaches that have put more than 9 billion stolen identity data within easy reach of cybercriminals, static user credentials can no longer be trusted. Digital identity moves beyond this static data with dynamic, anonymized data that can’t be faked or stolen.
Created to meet the authentication challenges faced by digital businesses, digital identity instantly recognizes legitimate users and blocks out threats using shared global intelligence. This is combined with advanced behavioral analytics and a clear-box approach to machine learning to connect the dots between the continuously changing associations among people, their devices, locations, credentials and online behaviors in real time.
ThreatMetrix Smart Authentication combines this dynamic intelligence with a strong customer authentication approach that includes mobile app security, device binding, multifactor authentication secure notification and biometrics – all designed to reduce false positives and friction throughout the customer journey.
Once trusted identities have been established, companies can confidently expand their online offerings into new geographies, increasing market share. In other words, they can securely grow their business.
That doesn’t sound like something businesses should be afraid of, does it? In fact, it’s something they can celebrate.