Vendor ThreatMetrix has published a short document about how online fraud detection systems often mistreat customers like they are criminals, leading to increased costs and decreased income.
Problems with common systems of customer authentication are discussed in "Are You Treating Your Customers Like Criminals?", including failure to recognise existing customers, time-consuming or awkward re-authentication and the poor user experience of payment verification processes like 3DSecure (e.g. Verified By Visa, MasterCard SecureCode, American Express SafeKey).
These lead to basket abandonment, payment failures and brand damage. The document describes other problems created such as making it difficult to enter new markets, increasing the customer support overhead, wasting marketing spend, and rising fraud levels during peak trading periods when barriers are lowered, leading to elevated chargeback rates.
It is suggested that retails need to simplify authentication, improve the identification of real customers, and mitigate the business impact of fraudulent activity. Recommendations for activities to undertake in real-time are provided. These measures can be implemented directly in code, as well as using vendor products and services. Also remember a post in March, User Interface Modifications to Combat Buyer Fraud.
Posted on: 15 May 2015 at 11:20 hrs