How digital trust can overcome the impact of fraud on CX


Instilling digital trust by putting identity at the heart of business operations is the digital version of putting the customer first.

Digital trust is essential for developing and maintaining positive, long-term relationships with customers. Trust encourages the sharing of digital identity information that can be used to improve the customer experience (CX).

Why? Digital identity includes various information relating to an individual’s identity that is left out during online interactions. For example, when a customer logs into their account, they identify themselves with an email and password and can include how they type, device used, time and location.

The problem is that verifying the identities of genuine users online is currently not working. Users forget their usernames and passwords, and fraudsters can acquire them.

Fraud, scams, malware, bots or social engineering are all symptoms of the real problem that digital identity is currently being shattered and is causing a digital trust crisis. How can we protect customers and provide a seamless user experience?

Online fraud and scams will increase if businesses shifting to a digitally driven model continue to use today’s obsolete methods to identify, verify, and authenticate.

When cybercriminals attack online interactions and transactions, businesses and consumers alike suffer the consequences. And it is the lack of understanding of the root cause of weaknesses in technology systems that makes it difficult for organizations to make informed changes.

Fraudsters clearly capitalize on vulnerabilities, and businesses need tools to ensure digital identity is at the heart of every transaction.

The price of an influx of new customers

The growth of the e-commerce sector has been incredible over the past 18 months. Due to the pandemic, many businesses have been forced to provide their products and services online to survive and of course to meet increased customer demand.

The increase in the number of new customers has been positive for tech giants such as Facebook, Microsoft, Alphabet and Apple, who said they generated an astounding $ 250 billion profit from increased digital spend and purchases. in line. However, the lack of experience in handling such growth for some companies means that they have taken what are in fact analog processes and digitized them instead of rethinking the customer journey and touchpoints for one. full digital experience. This means that many businesses don’t have the right technology to secure their customers’ online travel, personal data, and accounts, leaving businesses and consumers vulnerable to fraudulent attacks.

Fraudsters and malicious actors take advantage of this vulnerability. The average number of fraudulent messages received through all channels by an individual is 1,133 per year; that’s three a day. A quarter (24%) of those surveyed also said they receive more messages from scammers than from friends and family, according to a recent study by Callsign.

Even more alarming, 82% of Americans have received fraudulent messages in the past 12 months. And across all channels, U.S. consumers report receiving messages from fraudsters pretending to be banks and financial institutions via SMS (21%), email (22%), phone (23%), social media ( 22%) and messaging apps (21%).

The catch-22

It is clear that a remedy is necessary and swift. But the need to authenticate customers online regularly creates friction. A bad user experience can turn many customers away – seven in ten customers abandon their purchases because of a poor user experience.

So when businesses think about what digital identity verification solutions they want to implement, they need to do so in a way that limits the added friction to the customer journey.

One way to do this is to use passive approaches that ensure identity is incorporated into every interaction and transaction so that customers are protected throughout their online journey and not just during account creation and registration. the connection.

Passive approaches to digital trust for a better customer experience

It goes without saying that verifying a person’s identity is crucial in mitigating risk and building trust in our online world.

Using passive approaches such as behavioral biometric technology, companies can authenticate users based on attributes that put identity at the heart of every transaction.

Over the past decade, biometric technology has rapidly transformed from a niche technology to a traditional medicine for businesses. Currently, there are two distinct types of biometric technology:

  • Static biometrics – which includes identifiers such as fingerprint, face, voice, iris, retina, vascular, palmprint.
  • Behavioral biometrics – which uses dynamic inputs such as keystrokes (typing and swiping) when customers log in to access banking services, products and services online, using the same laptop to log in, or data location based on the user’s entire journey.

The most well-known static biometrics do not preserve privacy and can add friction to the user’s journey. Conversely, behavioral biometrics are user-friendly from the start, learning and adapting with the consumer as the business relationship progresses.

Since these are unique patterns based on the specific user, behavioral biometric technology can add layers of security to positively identify users without vulnerable single-use access codes. This improves the user experience when the customer accesses products and services.

Due to the overlay of these contextual data points, this technology ensures that there is not a single point of failure in the authentication process. It also places identity at the heart of every transaction, facilitating a smarter and more robust view of the customer.

Serve the customer via digital trust

Instilling digital trust by putting identity at the heart of business operations is the digital version of putting the customer first. This not only helps ensure smooth online experiences and transactions, but also secure and privacy-friendly experiences that benefit everyone.

Getting it right will improve customer confidence, foster brand loyalty, and ultimately increase business revenue.

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