Dive Brief:
- The vast majority of e-commerce leaders say that anti-fraud tools improve customer experience, according to a PYMNTS Intelligence and Nuvei survey of 300 e-commerce heads of payment or fraud departments released last month.
- More than 4 in 5 respondents cite increased customer satisfaction as one of the biggest benefits or the largest benefit of updating their anti-fraud toolkit.
- Nearly 7 in 10 leaders expect fraud prevention tools to help them eliminate customer concerns about data privacy.
Dive Insight:
The right fraud prevention tools can help companies improve customer satisfaction and maintain trust in addition to preventing the financial damage associated with a breach.
AI and machine learning are great for keeping ahead of fraud tactics, according to Julie Geller, principal research director at Info-Tech Research Group. Models powered by these technologies can self-improve, helping them recognize patterns and keep ahead of changing fraud tactics.
E-commerce companies can also help customers protect themselves by promoting digital wallets, Geller said. This technology uses advanced encryption and tokenization techniques that minimizes the risk of data theft by ensuring actual card details are never shared with the merchant.
“Consumers often feel that since digital wallets incorporate built-in security features like biometric authentication, it adds an extra layer of protection and creates trust,” Geller told CX Dive in an email.
No fraud prevention strategy is perfect, but the right actions can help minimize damage to customer trust following a security incident. Transparency is critical, and companies should notify customers of security incidents while taking action to protect their accounts and information after a breach, Geller said.
