The rapid increase in digital use created a perfect storm for fraudsters to quickly find new ways to steal funds, capitalizing on consumers’ lack of familiarity with digital platforms and the resource constraints faced by many businesses.
In fact, from January 2020 to early January 2021, the Federal Trade Commission released that consumers reported over 275,000 complaints resulting in more than $210 million in COVID-19-related fraud loss. Because of this, it’s critical for businesses to anticipate potential new fraud schemes to prevent losses and protect customers.
To select a suitable fraud detection solution for your business, you need to think about a variety of factors. We’ve talked to several industry professionals to get their insight on the topic.
Shai Cohen, Sr. VP of Global Fraud Solutions, TransUnion
With the COVID-19 pandemic dramatically accelerating digital transformation, fraudsters have tried to take advantage and companies must adapt.
Businesses that come out on top will be those leveraging fraud prevention tools that not only provide great detection rates, but also friction-right experiences for consumers. For instance, 85% of global executives surveyed in an October 2020 global study by the Economist Intelligence Unit and TransUnion said they believe smooth digital transactions are “essential to business survival” rather than merely a competitive edge.
Here is what businesses should look for when selecting a friction-right digital fraud detection solution:
Creating trust between a consumer and business by providing a comprehensive and concise view of the consumer
Protecting consumer data and making the consumer experience personalized by having access to information about the consumer’s device, email, location, behavior patterns, etc.
Being able to link a person’s online and offline data, and use ..