Let’s strike a balance between digital fraud prevention and customer experience once and for all
As fraud increases, companies often respond by implementing more stringent digital fraud protection methods. However, this can degrade the customer experience to the point where they become frustrated. Customer loyalty is crucial for any business, which means customer experience must be taken into account in any e-commerce risk assessment. Here lies the challenge; the constant tradeoff between preventing fraud and reducing friction for good customers, a balancing act that all companies need to learn to master. Adding additional data into decision workflows reduces the magnitude of this tradeoff because companies are able to perform verification more thoroughly, specifically, labeling good customers and flagging riskier customers more accurately.
Our Account Opening API takes the phone, email and the IP address as inputs to provide back data that can be used to categorize customers into different buckets of risk so that step-up friction or heavier weight checks can be implemented where relevant.
By flagging and grouping riskier users early in the customer journey, companies can confidently send low-risk users through a sign-up workflow that reduces friction, providing a much more seamless overall transaction experience. This nuanced approach to digital fraud prevention, in turn, increases customer loyalty and retention, which in the long run increases lifetime value.
