As published on CNP March 12, 2020
Fraud prevention is moving away from simply stopping fraud losses to establishing trust with customers. This shift means that businesses can approach their strategic fraud prevention in new ways. Businesses can determine the level of trust and risk they are comfortable accepting in order to block fraud in real-time and to enable personalized customer experiences.
What is Identity Trust?
Identities are behind every customer interaction from account creation, to login, to payments. The ability to accurately and quickly establish the trust level behind an identity is the key factor for the most effective fraud prevention, digital account protection, and personalized customer experience.
Trust is the confidence level behind each of these interactions. For example, a low-trust interaction is often an indicator of fraud. The highest trust levels indicate a high-value customer. Using machine learning and advanced AI, Kount compares each interaction to 2.7 billion fraud signals in real time to deliver accurate identity trust decisions based upon deep data that crosses different transaction complexities, different verticals, and different geographies. That analytical richness includes data on physical real-world and digital identities that creates an integrated picture of customer behavior.
By making trust decisions based on the identity of a shopper, businesses are empowered to protect themselves from losses while still limiting the amount of friction they put in front of their good customers. They can provide VIP experiences and fast checkouts for trusted customers or they can add additional authentication friction for those customers who appear risky.
Trust Allows Businesses to Personalize Customer Experiences
Determining the level of trust is based on multiple factors such as buying behaviors, return habits, policy abuse, preferences, fraud, and other risk identifiers.
Customers today are digitally savvy and know when they receive a personalized user experience that is fast and efficient. In fact, according to 451 Research, more than 41 percent of shoppers say they would increase their spending with a business if they received a more tailored experience, while 40 percent say a fast and convenient checkout experience would play a role in increasing their loyalty.
Businesses can now rely on identity trust to provide the appropriate experience to their customers. Solutions that rely on advanced AI based on deep and robust data are essential for delivering accurate assessments on user identities. Data that is accumulated over time and across different geographies and industries contributes to trust decisions, since the more data that is available, the greater probability the identity has been recognized in a separate transaction across the network.
Real-Time Identity Trust Delivers Trusted Payments, Trusted Logins, and Trusted Accounts
Kount recently launched the Identity Trust Global Network. From a website visit to login, checkout or account creation, Kount’s Identity Trust Global Network goes to work analyzing billions of identifiers to establish real-time links between identity elements in order to return identity trust decisions that provide the desired user experience ranging from low friction to blocking fraud.
A businesses’ ability to deliver accurate and personalized customer experiences is the key for increasing customer satisfaction, reducing friction, acquiring and retaining customers, as well as building and maintaining a high brand reputation. All of these positive outcomes translate into revenue, margins, and repeat business.