In the modern era, the overall surge in online shopping along with the rapid rise in cyber-related frauds over the past few years is a well-established concept. However, most people are still not aware of how the given frontline battle has changed. As per Jason Tan –Executive Member and Founder at Sift (a leading digital & safety firm), the average number of fraudulent purchases increased over $700 during the 4th quarter –around 70 percent from the previous year, accelerated by the immense increase in the overall account takeovers.
In the recent chat with PYMNTS, Tan revealed that when someone is capable of stealing your credentials, the individual can implement all types of activities with the given account. One can look forward to taking out value from the stored wallet. One can also go forward with buying stuff from the given credit card. There are several forms of crimes in multiple ways.
The techniques for cyber frauds keep evolving as the fraudsters are getting smarter day by day. There are several types of interactions and touch points with users that fraudsters tend to attack commonly. Whether it is about buying online at the pick-up in-store or curbside pick-up, or if it is digital-only order, there is going to be one customer at the end of the day. As this tends to make the job more difficult, this is the reason why technology has become so important in the modern era. The ability to ensure connection across different channels seamlessly is a major part of what the experts are trying to achieve.
Creation of the Friendly Fraud MFA
When someone would be committing friendly fraud, then they would be trying to get a refund for a specific product or service actually received or used. As we are capable of obtaining such in-depth footprints of the online activities every time we would be interacting with a website, there is the availability of abundant data to the merchants for allowing them to fight the given range of illegitimate chargebacks.
Therefore, the experts offer the suggestion for the development of some internal form of multi-factor authentication mechanism. It would allow the merchants to mirror their activities when it comes to verifying customer legitimacy. The given information that can then be utilized while trusting and safety teams advance through the process of chargeback disputes.
Here is the manner in which how it works:
- Starting with Identity: It is recommended to confirm whether the given customers had logged into some established account with the credentials already used before, made payment with a valid card or process, submitted reliable mailing & billing address details, or implemented the purchase with the help of some known IP address or device.
- Using Internal Data: When you are the merchant, you should obtain access to historical data with respect to how a particular customer might have previously interacted with the website –like whether the users are logged in or not with SSO, what the respective purchase history is going to be, or in case they have used a proper promo code.
You can even consider going in-depth into the given history for checking the logic behind the chargeback. As a merchant, you can also look out for specific records –like proof of delivery, proof of download, and any contradictory communication on the customer’s part.
- Mapping Out the Story About What Has Taken Place; One of the most important tasks on the front of any reliable safety analyst while filing the chargeback dispute is the creation of a concise, clear, and understandable story about what is actually going on. When you make use of relevant information that you have obtained about the identity of the individual and the overall past behavior, you can note down chronological events with particular supporting points as well as evidence.
Detecting the Fraudster and Protecting the Customers
With the cyber frauds on the rise along with the scammers being more sophisticated about using different techniques for luring the targets, businesses are expected to evolve the respective fraud strategies for combating a data breach. With the help of specific APP detection technology along with several layers of behavioral biometrics capacities, the merchants can help in the detection of APP frauds in a simpler manner.
Technology related to behavioral biometrics can help in identifying a wide spectrum of cyber-related threats in real time. This is achieved by analyzing over 2,000 behavioral patterns related to online banking users –for instance, the manner in which the users tend to interact with online devices and applications. It will also be making use of subtle tests like invisible challenges into the respective online banking sessions. The users can look forward to subconsciously responding to the respective challenges without feeling any alteration in the experience. The response can help in providing additional behavioral-specific data for distinguishing a real user from a fake one –whether robotic or human.
The given profiles help in identifying a user depending on the unique behavior. The manner in which a customer would interact with the given session would help in differentiating them from the prospective user –including automated attacks and hackers. The technology can also help in recognizing a wide spectrum of non-human & human activities, RATs (Remote Access Trojans), malware, and a wide series of robotic activities for flagging and catching fraudulent behavior in real time.
For effectively detecting and preventing these scams, the latest range of behavioral-based biometrics analysis can help in extracting powerful insights for suggesting a genuine user.
Positive Profiling of the Customers
With the power of behavioral analytics for detecting fraud, businesses can consider making use of the concept of positive profiling. It serves to be a combination of big data analytics and consortium intelligence. Positive profiling helps in allowing businesses to distinguish legitimate customers from the fraudsters. It implies the development of comprehensive customer profiles on the basis of detailed behavioral data obtained from several businesses.
With the production of highly accurate results, positive profiling will allow businesses to customize the overall user experience while improving conversion rates and maximizing revenue.