Increase in Fraudulent Transactions:
2023 has witnessed a significant 80% increase in fraudulent digital transactions. This phenomenon can be attributed to consumers’ growing adoption and reliance on digital payment methods. As more individuals opt for online transactions due to their convenience and speed, fraudsters find more opportunities to execute fraudulent schemes. Unauthorized transactions, the use of stolen credit card information,Synthetic Identity fraud and phishing attacks are typical examples of fraud techniques that have seen an increase.
More Sophisticated Fraud Techniques:
Fraud methods have evolved and become more sophisticated in 2023. Cybercriminals use advanced techniques, such as man-in-the-middle attacks, ransomware, and cryptojacking, to compromise digital transactions. Additionally, identity fraud remains a significant issue, with fraudsters using stolen or falsified personal data to conduct illegal transactions. These advanced methods make fraud detection and prevention challenging, necessitating more robust and advanced security solutions by entities processing digital payments.
Challenges in User Authentication:
User authentication in the realm of digital payments presents unique and significant challenges. Authentication systems must be highly secure to prevent unauthorized access while being intuitive and user-friendly, not hindering the payment experience. Implementing multi-factor authentication, biometrics, and other advanced identity verification methods is essential but must also be designed with the user experience in mind.
Increase in False Positives:
With the implementation of stricter and more advanced security systems, there has been an inevitable increase in false positives. These incidents, where legitimate transactions are flagged as suspicious or fraudulent by fraud prevention systems, can have negative consequences. Customers may experience frustration and inconvenience, losing trust and loyalty towards payment service providers.
Improving Payment Experience with FUGU
Payments as Experience:
FUGU adopts a multi-tiered approach that examines digital, physical, and behavioral criteria throughout the customer journey to detect and identify identity and transaction risks. This approach reduces fraud risk and helps minimize customer friction, ensuring higher risk transactions receive necessary attention without compromising the customer experience.
Post Payment analysis:
FUGU implements a non-intrusive and frictionless approach to post-payment analysis. After the payment is finalized, we meticulously monitor the client’s session, reviewing new orders and overseeing email interactions. In this process, sentiments, cooperation, stability, traceability, consistency, and transaction history are jointly evaluated as part of our comprehensive strategy to determine the risk level associated with each transaction throughout its lifecycle.
In the crucial post-payment phase, our continuous risk assessment of transactions guides the deployment of our KYC verification process. This approach ensures that KYC verification is initiated only when the transaction risk warrants it, focusing verification efforts on orders that truly require it. By doing so, we not only streamline the verification of necessary transactions but also enhance the overall purchase and payment experience for the user, making it smoother and more efficient.
Rethinking Customer Verification:
FUGU views customer verification as an asset and works to improve and optimize this process across different industries. By implementing intelligent post-payment analysis, friction in payments can be reduced, and customer experience can be improved without compromising the effectiveness of fraud prevention measures.
In an expanding digital world with a growing volume of online transactions, it is vital to implement accurate and effective methods and tools that ensure fraud prevention and a smooth and pleasant user experience. Post-payment analysis emerges as a wise alternative that balances security with improved customer experience, reducing obstacles during the payment process and lowering abandonment rates.