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December 23, 2020 - Claire Zhou

Striking a Balance between Fraud Prevention and Great Customer Experience

There isn’t a single company that wants to compromise its customers’ security. Companies know that any gaps left in defense can put their customers – and their reputation – at risk. But some organizations take security to the extreme in fighting back against fraud, which inadvertently creates friction for good customers. 

There’s a delicate balance between robust fraud prevention and playing it too safe, one that all companies should seek to discover to ensure customer experience doesn’t fall by the wayside. Here’s how to find that balance.

Finding the Priority in Fraud Detection vs. Customer Experience

At a time when instant gratification rules digital channels, customers have sent a clear message to the companies with which they do business: experience is king. They favor convenience and value at a time when brand loyalty is declining. Since customer experience is the ticket to winning more business, more companies are loosening up on fraud prevention controls that they believe could alienate their buyers. 

Customers aren’t the only ones excited by this frictionless approach. Fraudsters are also eager to take advantage of the growing mindset that fraud is simply part of doing business. What’s more, they’re often ahead of companies when it comes to committing fraud because they tailor their attacks to circumvent current fraud detection measures.

This is because most fraud tools adapt to threats only after those threats have been discovered. During this time, fraud can run rampant until fraud tools can be adjusted to close newfound gaps in defenses. As a result, companies are continually playing catchup to criminals and racking up costs as they go.

What to Consider for Frictionless Fraud Fighting

When companies prioritize tighter fraud control, customer experience can suffer. But you could also argue that the customer experience already suffers because companies have to include the costs of fraud when pricing their products or services – a cost the customer ultimately pays for, at least in part. 

To create the best of both worlds, companies should take a proactive approach to fraud detection that can stop fraud before it occurs. Some of the building blocks of this strategy may include:

  • Device identification – Multiple customer transactions from the same device could indicate fraud.
  • Real-time fraud detection – Fighting fraud in real time can prevent delays for good customers.
  • Expanded fraud-related data points – Reviewing multiple data points in real time at scale can help uncover relationships between activities and identities.
  • Machine learning capability – Taking a holistic data analysis approach and using advanced machine learning can help you improve accuracy and reduce the risk of false positives. 

How DataVisor Upholds the Customer Experience Without Sacrifice

Though many businesses expect to absorb the costs of some fraud, it’s important to realize that this isn’t the only option. DataVisor’s comprehensive fraud prevention platform is helping companies to walk the line between robust fraud detection and a frictionless customer experience.

By improving detection rates in real-time on a broader scale with fewer false positives than conventional fraud tools, DataVisor empowers companies to take quick action on potential fraud and allow legitimate transactions to proceed uninterrupted. 

 Join our bi-weekly demo of the DataVisor platform and see for yourself how it delivers the secure customer experience that will help you win more business and fight fraud at the same time!

Photo of Claire Zhou
about Claire Zhou
Claire is a Senior Product Marketing Manager at DataVisor with over 5 years of marketing experience in security and fin-tech. She is passionate about empowering enterprise customers with AI-based solutions. Her expertise spans data analytics, cybersecurity, and fraud prevention. Claire has an MBA from UCLA.
Photo of Claire Zhou
about Claire Zhou
Claire is a Senior Product Marketing Manager at DataVisor with over 5 years of marketing experience in security and fin-tech. She is passionate about empowering enterprise customers with AI-based solutions. Her expertise spans data analytics, cybersecurity, and fraud prevention. Claire has an MBA from UCLA.