New Year. New Modern Fraud Strategy.
FRAUD TACTICS ARE ALWAYS EVOLVING. According to a recent study by 451 Research, fraud volumes have backed off the pandemic highs of 2021, but 58% of businesses continue to see an increase in online fraudulent transactions.
Scott Przybyla from the Digital Solutions team at Equifax, recently shared in a webinar on How to Build a Modern Fraud strategy, that the risks for online businesses that grew the fastest in 2023 were chargeback fraud, refund abuse and re-shipping, known as refund. While merchants should focus on blunting fraud tactics, over the last three years, most businesses have focused more on preventing fraud than the user experience. While focusing on the impact of fraud to the bottom line, it's important to consider that fraud is more than just about losses. Merchants also need to consider the total customer experience impact and the cost of operating their fraud prevention.
As we start another new year, it is a time for businesses to review their current fraud strategy and ensure it is able to keep pace with modern threats. The questions business leaders should be asking are:
How is generative AI and other emerging fraud tactics affecting your fraud strategy?
Is your fraud strategy creating too much friction for your returning customers?
How can your fraud strategy do more to enhance your image and brand with your customers?
Do you have the right technology in place - from your fraud prevention partner to your payment stack?
When a business has the right tools in place for fraud prevention, they can also prioritize the customer experience, leading to revenue growth and increasing customer lifetime value. To learn more, you can view the free webinar from Digital Solutions at Equifax, 451 Research, J.P. Morgan Payments and Cinch Home Services here.