November 21, 2017
Helping Retailers Differentiate Between Good and Bad Transactions
Fraud prevention technology initially developed by online retailers was based on the assumption that most shoppers were sitting in front of a computer. That’s clearly not the case anymore with smartphones. Retailers have to adjust their fraud fighting strategy accordingly to accommodate mobile.
Helping retailers differentiate good online orders from bad and make decisions based on that knowledge has become increasingly important. Properly assessing which mobile transactions are from good customers and which are from cybercriminals is imperative to profitability. Mobile devices complicate this even more. According to comScore, two-thirds of consumers use a smartphone or tablet to shop online. Consumers are spending 60 percent of their time on retail mobile sites, but most are still making purchases on computers.
The data from our annual survey from mobile retailers illustrated that over 500 companies increased their mobile sales more than 80 percent and it’s notable the conversion rate is nearly 3 percent, which is not far below the average for e-commerce sites generally. Companies like Amazon and eBay have developed outstanding mobile apps, and are making a lot of sales through them. It is vital for all retailers to have a fraud prevention strategy for mobile devices as well.
It is also useful to know how your consumers are using their devices. This data about smartphones can help you develop your profile of legitimate mobile shoppers, including where they are coming from and what they’re doing on their phones.
Here’s what a recent Deloitte study showed on behalf of consumers shopping on their mobile phones last holiday season. They were using them to find store locations, check prices, look for discounts and actually shop. It’s also important to recognize that legitimate mobile consumers will be doing on your site as they check-in with their phones, while they are away from home.
So How Do You Recognize Which Customers Are Trusted?
It is possible to create an enjoyable experience for customers while still detecting and preventing fraudulent transactions. We do this with our global intelligence network. I really believe that in fact, it takes a network to fight a network. The structures are really well connected to each other so that our fraud prevention solutions are effortless to implement.
We provide cyber security solutions to retailers, financial services, government, as well as social media. We also serve banks and credit unions. The nature of our Digital Identity Network is that we look at your customer and then we look at behavior and using our global intelligence, we analyze velocity and frequency. We look at anomalies and how they correlate with each other as well as how much money customers are spending.
In our Digital Identity Network, we analyze 1 billion transactions per month. We are protecting our customers and expanding to gathering 250 million digital identities. I wanted to share some of the challenges that people in e-commerce face. Cybercrime continues to grow and there is a shift from Internet to mobile commerce, as most people have their phones with them 24/7. Cybercriminals are creating modern malware attacks for mobile including botnets, phishing, and man-in-the-middle viruses. These attacks are growing in accordance with the upward mobile trend.