The way we do business is gradually shifting towards fast, simple and convenient methods. While this is undoubtedly good for merchants and shoppers alike, it has also introduced new challenges regarding security and fraud.
Here are three trends in e-commerce, and how they’re influencing the raging fight against online fraud.
- Instant Gratification
These days, the one thing shoppers can’t tolerate is waiting for goods or services. Leave them hanging for a few minutes before a checkout, and they may just abandon their cart altogether. In response, e-commerce is getting faster, and merchants are working tirelessly to keep the user experience as simple as possible.
The downside to instant checkouts, however, is that many websites tend to trade off intricate but useful security measures to keep authentication light and quick. Fraudsters can therefore easily create fake accounts and make purchases with false information.
- M-Commerce
Smartphones account for more than half of the time spent on the internet, and it isn’t all thanks to social media. In 2016, mobile transactions accounted for 35 percent of all e-commerce transactions. Moreover, U.S. m-commerce sales are projected to reach a whopping $284 billion by 2020.
Delving into m-commerce has the primary benefit of making online shopping easier and quicker than ever. It also means you don’t have to hop on a desktop and mess with LAN, as you can now send a gift or order groceries while waiting in line for brunch. On the other hand, because many mobile users lack transaction history, it’s difficult for a merchant to trace any user abnormality. Detecting fraud, therefore, requires a real-time risk assessment, especially with on-demand purchases.
Nevertheless, utilities like biometric systems, GPS, and SMS verification are making it easier for merchants to authenticate payments without adding friction to online transactions.
- Multi-channeling
The growth of m-commerce doesn’t mean that customers are abandoning their computers in favor of five-inch screens. In fact, the average online shopper completes transactions from at least two different devices using various payment channels, including credit cards, debit cards, and PayPal.
A merchant that allows customers to jump from one channel and device to the next benefits from keeping them satisfied all through the checkout process. However, identifying who your shopper is and whether a potential of fraud exists can be challenging. Multiple channels mean more payment options, which in turn increases complexity concerning fraud management. Rules and regulations also vary between forms of payment, meaning fraud can shift from one channel to another.
Providing multi-channel payment processing while combating fraud requires a consolidated fraud-management service, which can handle customer data from multiple channels while offering robust credit card fraud prevention.