The last two decades have been revolutionary to the world of businesses. More and more physical stores continue shifting to e-commerce as the multi-billion sector expands year-over-year. These days you can find nearly any product or services online via the internet or simply through your mobile app.
But criminals have been watching closely and evolving with businesses as they transform digitally. Because everything went online and the marketplace is lucrative, fraudsters work the midnight shift to take advantage of unsuspecting retailers and shoppers.
Therefore, businesses must keep up because cybercriminals are after a higher price. If you think the risk lies with hacks made with stolen credit card info, then you don’t know the real weight of the matter. Fraudsters are partnering to form large syndicates and designing automated malware that can compromise an entire company’s systems.
If you are going to survive digital fraud such as bots and card testing, then you must focus on machine learning and data science. Such attacks occur in the early stages of the transaction process. They also have comparable features such as the stages when they happen in the transaction process, the speed, and their overall impact.
Evolution of Defense Systems
As fraud gets more sophisticated, businesses must put up stronger defenses and response systems to ensure timely alerts and recovery in the event of an attack. In the past, organizations depended on internal defenses to protect themselves in the initial steps of the transaction process leaving third-party defenses as supplementary defenses for later stages.
While internal defenses are critical to any business, most firms hesitated to add a layer of security from third-party vendors. Not because the business didn’t need such protection, but the concern was more on the cost of partnering with a third-party vendor. Many firms saw partnering with an external service as an added operational expense that was difficult to maintain.
Yet these third-party vendors play a critical role in initial stages of the transaction process such as ID verification on multiple transactions and quicker response times to detect attacks and reduce their potential dangers.
Business Should Leverage Transaction Risk Solutions
Transaction Risk solutions are data science tools built to allow a seamless integration into transaction systems.
These third-party solutions have extrapolative identity verification capabilities to help e-commerce merchants fight transaction fraud. They also boost the efficiency of the ID validation process without compromising on speed.
The best solutions, like the Transaction Risk API, protect against identity fraud through email, IP addresses, phone, name, and home/business addresses.
Closing Up
Only businesses that learn to eliminate fraud in all stages of the transaction process will stay safe from fraudsters of the digital era.
Leverage digital technology to improve your identity verification process and protect your bottom line.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high-risk payment processing company eMerchantBroker. He’s just as passionate about connecting businesses with chargeback insurance providers as he is with traveling and spending time with his dog Cooper.