Customer-Friendly and Cost-Efficient Technology to Prevent eCommerce Fraud

Online fraud rose 15 percent between 2015 and 2016, and approximately $32 billion in costs associated with e-commerce fraud occurred in 2014. LexisNexis reported that 1.5 percent of retailers’ revenue is linked to fraudulent transactions. Continued data breaches also put online shoppers and retailers at risk. However, you can safeguard your eCommerce business from fraud by enhancing your existing security with easy to use, cost efficient technology tools.

How People Are Gaming the System

Before safeguarding your e-commerce operations, it’s important to understand how people are getting around security measures in the increasingly card not present (CNP) transactional environment. Some common ways eCommerce fraud occurs include:

Vulnerability in Mobile Devices and Infrastructures. Data breach occurs when vulnerabilities exist. Even the largest and most sophisticated businesses are vulnerable, as evidenced by headlines regarding Sony, Yahoo and retailers like eBay and Target. They can happen on almost any device, too, and with the rise in the use of mobile devices for both personal as well as business purposes, there has been an exponential growth in the number of well-organized cyber-crimes and independent hacks.

Account Takeover Fraud. Account takeover occurs when a fraudster uses a piece of stolen personal information to attempt to gain access to a private account. This does not have to be a social security number or PIN code – anything from an email address to a username, any identifier used in the validation process can work. As an example, a fraudster could use an email and login for any account and run that against services such as PayPal, eBay, Amazon and virtually any other mobile app – in minutes. Validated credentials can then be sold for hundreds or thousands of dollars on the Dark Web.

Chargebacks and Reversed Transactions. This form of “friendly fraud” happens more often than you think. More than 86 percent of chargebacks are estimated to be fraudulent. It makes it easy for customers to get a refund via their credit card companies by disputing charges while putting the burden on the e-retailer or business owner to prove that the charges are valid.

Identity Theft. While ushering in the EVM chip helps to reduce fraud in person, it doesn’t stop fraudsters from viewing the physical card number, recording it and using it online. Moreover, hackers can get personal data online from doxxing (the internet-based practice of researching and broadcasting private or identifiable information) and can often link public information with bits of personal data, such as the last four digits of the social security number and the birth date and address from a voter’s registration database online.

Tech Solutions That Work

With the increase of card not present (CNP) and mobile transactions, the good news is that you can safeguard your online business with the right tech tools. Here are some quick and easy tech solutions to instantly prevent eCommerce fraud:

ID Verification via ID Authentication. Quick and easy ID capture can allow online retailers to validate an ID in seconds. Forensic tests can be performed in real time to ensure that the ID presented is authentic. Scanning the ID also allows retailers to get necessary information that is accurate to populate into your point-of-sales (POS) system and CRM. This allows for quick verification of customer data such as age and address to verify the sale of an alcohol wine club membership or other age or geographically restricted business. It also removes the inconvenience of manually entering in data, improving shopping cart abandonment rates.

Biometric Security Measures. Facial recognition match makes it easier and more user-friendly to verify identities and integrate with existing apps or systems. Customers can simply snap selfies to verify that they match the photo on their government issued ID from a webcam or mobile device. This extra step prevents fraudulent transactions by further binding a person to their identity.

By recognizing that there are quick and cost-effective tech solutions to manage online retail fraud, you can instantly reduce your risk and recognize good transactions while flagging bad ones. As a bonus, you get the added benefits of:

  • Verifying Age and Address
  • Clean CRM/Customer Database with Accurate Information
  • Fast and Friendly Customer Check-out Experience

See what verification tools are right for your business!

 

IMPROVING IDENTITY VERIFICATION SOLUTIONS IN FINANCIAL SERVICES

Despite advances in technology, such as the spread of credit cards with microchips, in 2016 more than 15 million Americans lost $16 billion as a result of identity theft.

Financial services is an area where identity verification is crucial. Financial institutions must ensure that customers are who they claim to be, but they also do not want to make the verification process very difficult and annoying for customers. Mistakenly giving a malicious actor access to a user’s bank account could result in devastating consequences. But what are customers willing to do and what should they do in order to have security? We know that today, answering a few questions and providing a password is easily hacked by sophisticated fraudsters.

Fortunately, there are a number of solutions to protect customers from fraud that are also user-friendly and fast.

Onboarding and New Account Creation

Bringing new customers on board needs to be quick and easy, but also secure in order to protect both institutions and customers. When a new bank account is opened, it’s the institution’s responsibility to verify the identity of the user. The bank must first verify that the given name and Social Security number match a real person, typically by contacting one of the three major credit bureaus. Next, the bank must verify that applicants are who they claim to be by asking questions about their personal history, such as cities or streets where the applicant has lived in the past.

Financial institutions in the U.S. also need to comply with applicable security regulations when opening new accounts. “Know Your Customer” (KYC) is a policy for businesses who need to verify the identity of their clients in order to prevent crimes such as fraud, identity theft, and money laundering. KYC programs begin by collecting and verifying information about customers and checking them against a list of known criminals. Higher-risk customers have additional information collected, and their activity is monitored for potential red flags.

All of these processes can be streamlined and automated by the intake and authentication of data from a government issued ID, like a driver’s license. Authentication solutions that scan an ID, on a desktop or mobile device, can verify a credential in seconds to validate it. This then allows the institution to match the verified credential to the person. You may do this visually at a bank, or through a mobile facial recognition app that will match the photo on the ID to a selfie taken.

Mobile Banking

Mobile banking is a trend that is set for explosive growth in the years to come. In 2015, KPMG estimated that the number of mobile banking users would double in the next 4 years to 1.8 billion people.

This rapid growth of mobile banking makes the identity verification process even more important. Traditionally, mobile banking customers have logged onto their accounts using a username and password. In the event that they forget this information, customers need to provide data such as their Social Security number or credit card, or answer “out-of-wallet” security questions.

However, in recent years, banks have explored alternate security measures, such as biometric security. For example, many banking apps now make use of fingerprint and facial recognition technologies. In addition, some financial institutions allow users to verify their identity using their voice when they call the company’s phone number.

It is possible today to open an account and conduct all your banking without ever stepping foot in a bank, but you want to make sure that your financial institution is taking proper security measures and all the better if they are fast and easy for customers!

 

How the Healthcare Industry Utilizes Identity Solutions

The healthcare industry has built up a reputation for lagging claims, mountains of paperwork, and a bureaucratic process that does more damage than good—but a lot of this negative feedback stems from poor patient and customer experience.

Take the management of patients, for example. This process is typically over encumbered by redundant forms and requests for information already on file somewhere in the system. The problem with trying to streamline patient registration or workflow has to do with poor record management and filing.

Identity solutions allow healthcare officials and institutions to improve the onboarding process by eliminating extraneous paperwork and their associated costs. It also goes beyond cutting down on paperwork. Identity solutions can help reduce labor costs, improve the flow of patient information and transactions, and reduce problems like claim rejections owed to wrong or missing information.

There’s an increasing number of ways identity solutions can be used to improve the quality and efficiency of service. As the healthcare system makes the gradual change from physical paper documents to electronic medical record (EMR) systems, the benefits—and incentives for adopting a more streamlined approach—are becoming clear.

Automating data capture during patient intake

Using card scanners such as MedicScan at the front desk of a doctor’s office or hospital allows patients to be processed in record time. Their information can be captured from an insurance card or ID, their EMR auto-populated, and their identity verified in a matter of moments. This saves time for all parties involved, particularly patients and employees. Streamlining the intake process boosts efficiency by drastically cutting down on potential for human error during intake, further reducing time spent on rejected insurance claims.

With reliable identity solutions in place, healthcare can cut labor costs and wasted time by eliminating hundreds of keystrokes per intake, which frees up resources and personnel that can be better allocated. Devoting those resources to better patient care creates a lasting impression that helps build credibility and a better reputation.

Protecting customers and the industry from fraud

Healthcare is a popular target for hackers and would-be fraudsters. Implementing stronger protection for physician portals and EMRs, and utilizing authenticating technologies easily diminishes the potential for identity theft.

When a patient’s identity and privacy are compromised, not only do they suffer financial fallout, but the industry has to deal with the fraudulent claims and any legal fees they incurred because of the initial theft. This can tarnish a business’s reputation and it’s critical to healthcare’s success to have a standardized, streamlined flow of patient information—one that includes identity safeguards.

Having the power to verify patient identity allows hospitals and other practices to confirm that any given record is accurate and up to date, and gives them the peace of mind to know that their patient data isn’t being used by malicious hackers or fraudsters. The healthcare industry uses identity solutions, in part, as a security measure. They can protect customer information from falling into the wrong hands, but also ensure that medical records and health data are accurate. Errors in patient data could jeopardize future treatments or healthcare financial limits.

Customers feel safer knowing their information is being protected and recorded accurately, which builds further trust between healthcare providers and their patients.

Creating a more mobile healthcare experience

Healthcare staff are no longer bound to desks and front offices when patient information can be effortlessly pulled up on a terminal or tablet. Providers can swipe or scan IDs, documents, and insurance cards wherever they are, which means no more running around for charts or files.

When doctors can recall patient information at a moment’s notice, it enhances the quality of their care, and their ability to interact with patients. This also applies to patient care in non-traditional settings, such as specialized pharmacy administration and home health care.

Enabling other forms of check-in and health care

Mobile identity solutions create a sense of self-sufficiency that many patients may prefer. With tablets or kiosk systems, they can handle their own registration and check-in. This is another contributing factor to lowering labor costs and improving the patient experience. Having self-service check-ins streamlines the registration process by further automating the input and recall of patient information.

These advances allow something like retail clinics to exist as well. With almost instantaneous data capture and recall, these providers can quickly process medical insurance information to make more time for seeing the patient and administering care.

Healthcare hasn’t completely adopted the current identity solutions available to the industry yet. As it does, it paves the way for a streamlined method of handling claims and patient care that reduces risk of fraud, identity theft, and lost time and revenue.