How long-term digital fraud protection can increase profitability
After implementing a digital fraud solution, your fraud problems might seem to disappear. Your chargeback rate might be super low, your manual reviews virtually eliminated. So it’s easy to start thinking that you don’t need to keep using that fraud solution.
But just because fraud doesn’t seem like an issue to your business anymore doesn’t mean it — and bad actors — goes away.
“If your controls are good, you’re not having false positives, and you’re stopping most chargebacks, you might be convinced that fraud isn’t a problem for your business anymore,” said Rich Stuppy, Vice President and Senior Customer Experience Leader at Kount.
But a digital fraud prevention solution isn’t only beneficial for fighting fraud. Having ongoing access to fraud prevention tools, data, and fraud policy management experts can save you time and increase your profitability.
Ongoing fraud and chargeback protection expands growth opportunities
Fraud is always evolving, and chargeback prevention is not a one-time fix. If you discontinue the use of a digital fraud solution, you will likely re-experience the problem that initially led you to the solution.
“You can think about it like antivirus software,” said Stuppy. “Long ago, people didn’t have antivirus on their computers. Then emails started spreading viruses, and from that moment on, antivirus became critical. If you didn’t have it, you were infected in a matter of minutes when you plugged into the internet.”
The same idea is true when it comes to digital fraud.
“Whether it’s loyalty fraud, payments fraud, or promo abuse fraud, you need to install sensors along the way so that you can detect when the activity is happening. And if you don’t have those sensors, you won’t know until it’s too late,” continued Stuppy.
Implementing a digital fraud prevention solution isn’t just a smart business investment. It’s a necessity. Fraud can wreak havoc on a business. Consistently protecting your business allows you to focus on growth opportunities.
For example, before Fetch Rewards implemented a digital fraud solution, it was losing significant time and resources to manual reviews. But after they started using a digital fraud solution, they reduced their fraud rate by 70%.
And they went from manually reviewing 20% of orders to reviewing less than 2%. Additionally, since the company automated its fraud prevention, it increased its monthly active users by 500%.
When businesses have an automated, optimized fraud solution, they give themselves a critical safety net. And they give themselves the resources to branch out to new markets and increase their potential for revenue growth.
Collected fraud data can improve business, marketing strategies
Knowing your customers is essential for business and revenue growth. But it can be challenging to gather the data you need to know who your customers are.
For example, many businesses may not be aware their customers are located all over the world. So they might miss out on revenue opportunities by declining orders outside certain countries or territories.
Fortunately, a digital fraud solution can resolve uncertainties about transactions with advanced AI and machine learning. In turn, businesses can increase their revenue by identifying good customers and accepting more orders.
Ongoing use of a digital fraud prevention solution also opens access to data that can improve business strategies and provide valuable customer insights. With that data, you can personalize marketing campaigns, increase cross-sells and upsells, increase conversions, and discover new revenue opportunities.
And the longer a business maintains the solution, the more insights they gain over time. So they always have an advantage in the digital market.
Fraud policy management experts continuously optimize policies
When you implement a digital fraud solution, you also gain access to fraud policy management experts. These experts can significantly reduce manual reviews, approve more good orders, and maximize risk assessment efficiency throughout the life of your digital solution.
“It’s not enough just to present the data. You need to have deep insights into the industry to determine what is indicative of a fraud attack,” said Stuppy. “Our customer success managers and our professional services folks are fraud experts with decades of combined experience. They can look at the data and determine what’s happening.”
Fraud policy management experts save businesses time and money on hiring and training personnel to conduct fraud reviews. And these experts can help businesses set up policies so that they don’t miss out on revenue opportunities or create friction for good customers.
With the help of these experts, businesses can make informed decisions on fraudulent and non-fraudulent activity. In turn, they can maximize opportunities for revenue growth.
“This is not the sort of work that you want to do yourself,” said Stuppy. “Having the expertise and a platform gives you the freedom to make new and sometimes scary decisions about your business because you have a backstop and protection. And there’s a lot of value in that.”
A commitment to fraud protection improves business efficiency, profitability
Keeping your business protected from fraud and financial loss is the primary benefit of a digital fraud solution. But you also gain valuable customer insights that can increase revenue and resources that can improve business operations.
There’s no doubt about it: Implementing a digital fraud solution long-term is one of the best ways to stay competitive in the digital market. And the benefits only continue to grow the longer you keep the solution.