The payments and commerce landscape has undergone significant changes in recent years. At a local level, commerce and banking moved to a digital-first, standard format. At a global level, and specifically in developing markets, there has been a huge transition from “mum and dad” shops straight to online commerce. People no longer need banks or shops; they need banking and commerce services.
However, as much as this offers new and exciting online opportunities to businesses, unscrupulous individuals are also taking advantage of easy-to-access fraud tools and freshly breached data, exploiting vulnerabilities and targeting weaknesses in the security infrastructure of unsuspecting organisations.
Managing risk in a “post-breach world”
Companies are now operating in an environment in which they have to assume, even with the most sophisticated security solutions, that there are no cast-iron guarantees in a “post-breach normal” world. Managing risk in this environment needs to be handled in real time.
The most pressing challenge for companies is to balance customer experience effectively with security and regulatory issues. Customers have become accustomed to frictionless digital experiences and want payments to be made immediately. At the same time, cybercriminals are constantly evolving their attacks and using increasingly sophisticated techniques.
An increasingly complex regulatory environment that necessitates businesses to comply with PSD2 (Second Payment Services Directive), faster payments and open banking, adds a further burden to companies.
Fraud management is no longer a linear decision, with multiple factors needing to be considered and weighed in real time, which is something traditional tools are unable to accomplish. As cyberattacks become ever more complex, sophisticated, and cross-channel, companies need a solution that can change as business needs change, yet that can also protect against the evolving fraud landscape.
Balancing multiple priorities
Strong, but frictionless authentication is the key to offering an elegant customer experience and minimising fraud, while also staying in compliance.
Although companies have attempted to improve security through different authentication methods, such as knowledge-based authentication (KBA) and multi-factor authentication (MFA), these methods are not without shortcomings. KBA lacks security because it is dependent upon “shared secrets” between users and servers, and MFA causes friction, which frustrates the customer. Businesses need a solution that empowers them to seamlessly balance multiple competing priorities without increasing friction, operational costs, or false positives.
Using data as a strategic advantage
As fraud continues to grow and cybercriminals become even more adept at circumventing security tools, it’s imperative to maintain a seamless experience for legitimate users. Using various types of data sources and applying concepts of machine learning for greater visualisation and accurate insights to drive effective fraud management is critical. Companies that can turn data into a strategic advantage will establish an edge over their competitors.
Built with a data-first approach in mind, Simility’s Adaptive Decisioning Platform offers a holistic view of the end customer. This helps companies orchestrate complex and accurate decisions to reduce friction, detect fraud patterns, and assist with regulatory requirements.
Simility’s complex authentication looks at various types of data, such as login, history, cross-channel interaction, behaviour, device, geolocation, etc to effectively and seamlessly decision the end user. Users are automatically accepted, rejected, or required to step-up, such as in the case of high-risk transactions.
With Simility, companies do not only have the processing power to analyse huge datasets, but they can also customise user interactions. By personalising services based on risk factors, such as location, device and behaviour, trusted users can be identified and treated as such and provided with a more seamless experience, leading to increased customer satisfaction.
About Rahul Pangam
Rahul Pangam is the Co-Founder and CEO of Simility. He’s an industry veteran, with impressive experience from Google, who is dedicated to empowering fraud fighters with the most adaptable, scalable, and accurate fraud analytics platform.
About Simility
Simility offers real-time risk and fraud decisioning solutions to protect global businesses. Simility’s offerings are underpinned by the Adaptive Decisioning Platform built with a data-first approach to deliver continuous risk assurance. By combining artificial intelligence and big-data analytics, Simility helps businesses orchestrate complex decisions to reduce friction, improve trust, and solve complex fraud problems.
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