Secure your business from login to chargeback
Stop fraud, break down data silos, and lower friction with Sift.
- Achieve up to 285% ROI
- Increase user acceptance rates up to 99%
- Drop time spent on manual review up to 80%
By Geoff Huang /
Updated
Today’s fraud landscape extends well beyond payments and financial transactions, but most fraud prevention solutions – particularly the ubiquitous legacy tools so many businesses utilize – aren’t equipped to handle the ever-evolving issues organizations can’t afford to ignore.
In our webinar featuring guest speaker Andras Cser, VP Principal Analyst with Forrester, Leading the Digital Trust & Safety Transformation: How to Increase Revenue and Customer Happiness without Risk, I sat down with Forrester’s VP Principal Analyst Andras Cser to discuss why legacy fraud solutions are obsolete, and how Digital Trust & Safety strikes a necessary balance between fraud prevention and strengthening the customer experience.
Out with the old…
According to Forrester, most legacy fraud solutions are geared toward protecting payment transactions, making them ineffective at addressing new fraud issues plaguing companies today, like account takeover (ATO) and content abuse. This is especially problematic given the rapid growth of non-financial fraud in spaces like the travel and dating industries and online marketplaces, where everything from loyalty fraud to romance scams and fake listings run rampant. Fraudsters will try to exploit any customer-facing service where there’s money to be made.
Forrester recommends that businesses have a “360° view” of transactions and identities to get a clear picture of consumers and their behaviors, which legacy options don’t provide. Ideally, your solution should be able to analyze:
Having greater insight into individual users and their behaviors reduces the amount of friction that needs to be introduced into the customer journey for all users. But many companies are still relying on obsolete solutions that introduce the maximum amount of friction into the customer journey – and they plan on continuing with business as usual.
Last fall, Sift surveyed 500 leaders of digital businesses responsible for growth and operations; Âľ of them prioritize frictionless experiences, but â…” admit that their solutions block good users and 90% of them said they will continue to invest in the same tools and processes that have introduced friction into their customer experience.
The status quo isn’t working, and businesses that stay stuck in their old ways risk getting left behind by customers that are tired of being treated the same as bad users.
…In with the Digital Trust & Safety Mindset
Many businesses that are transacting online (especially those that are not digital native organizations) are operating with the loss prevention mindset that brick-and-mortar businesses have, which is to say they’re focused entirely on preventing fraud losses and not concerned with creating positive customer experiences. But digital natives understand that the key to success and growth isn’t just reducing losses, but reducing friction for good users – and they’re performing better for it. Doing digital business means operating under a new model for growth, which follows the customer journey:
However, each step of the journey poses a different risk. A new account could be a fake account that will be used for fraudulent activities; that log in could actually be a case of ATO; a purchase could be made with stolen credit card information; and a review could be fake or a vehicle for spams and scams. Every step is an opportunity to increase conversion rate and accelerate growth, but also a risk of introducing friction for customers with every fraud countermeasure that you implement.
So how are you going to win? You can’t if you’re using legacy solutions that kill your growth.
The answer is Digital Trust & Safety, a philosophy built on the belief that fraud prevention and positive customer experiences aren’t mutually exclusive – they’re two sides of the same coin.
Sift delivers Digital Trust & Safety to our customers based on our foundation of Technology, Community, and Partnership.
The results of adopting this mindset speak for themselves: 80% of Sift customers have seen a reduction in chargebacks, 60% have seen a reduction in spam and scams, and they’ve experienced a 2x increase in accepted order volume, thus growing top line and reducing losses.
Fraudsters and good users aren’t the same people – it’s time to stop treating them alike
Per Andras, Forrester recommends that “businesses use only as much security as the risk justifies,” to make customer experiences as frictionless as possible for good users and reduce customer insult by profiling customer behaviors and “applying them across channels to leave good customers alone.” Fraudsters aren’t going to wait for legacy solutions to implement the features they’ll need to provide this balance of security and user satisfaction – but Sift is ahead of the curve, and ready to stop them in their tracks.
To learn more about making the Digital Trust & Safety transformation, watch our webinar with Forrester.
Geoff is the Vice President of Product Marketing at Sift. He has led product marketing at companies like RingCentral and VMware, with a focus on go-to-market execution. He is a strong believer in simplifying the complexity of disruptive technology.
Stop fraud, break down data silos, and lower friction with Sift.