We know how.
Ask us, we are glad to advice you!
Specific-Group Germany GmbH
Specific-Group Nordrhein-Westfahlen GmbH
Rheindorfer Strasse 3
Specific-Group Germany GmbH
Mainzer Landstraße 69
60329 Frankfurt am Main
Tel.: +49 89 125 031 315
Security in the digital and physical payment environment
As the volume of digital payments in continuously growing, so are the frauds connected to this area. You can say, that this is old news and you would be fully correct. In this article, we will show you what we at Specific-Group think about this problem and how we can help you addressing it so that online fraud can become old news for you as well.
Possible impacts of online fraud
Digital fraud poses a big challenge not only for financial institutions and merchants because of loses due to liability laws protecting customers, but also might affect the customers´ behavior shifting their purchases from online back to physical stores and thus negatively impacting the margins. If the perceived security is lacking during our online interaction with a merchant, we are more likely to abandon the journey and to look elsewhere.
Key areas to be addressed
There are many solutions in the market trying to address the problem of online fraud, but frequently fail to do so, as their solutions are not addressing all key areas involved:
Multi-channel approach: the protection must cover the full spectrum of the payment touchpoints in order to be effective. Payments and direct debits executed online, card transactions (both physical and card-not-present) as well as the behavior in physical stores play a key role in our everyday financial lives. Only a solution which monitors all these areas can successfully understand your behavior and thus enhance the level of protection.
User experience: of course, we could have a solution with many levels of different authentications for the payments, so to say building a digital Fort Knox. But having the high friction during the full purchase journey would also lead to a high abortion during the process. Who wants to deal with this burden, when buying something for their household online?
Intelligent and self-learning: any solution which will not learn and monitor your behavior will in the end either not be able to fully recognize a possible fraud or, if setup too narrowly, will lead to many false positives. Why bother you with a high security for your card transaction at your favorite steak house? At this point, you can ask yourself, how would the solution know what my favorite steakhouse is? Well, it would learn your habits from different sources of information like your geolocation, your social media profile and your payment history, just to name a few. Based on these information, the solution can perform a risk scoring for each of your transactions and based on the result, can offer a different level of security. To stay with the steakhouse example, you would not need to do anything else than sign the bill. But what if suddenly your card is used at a vegetarian restaurant in Asia? Have you purchased a plane ticket to Asia lately? Have you mentioned that you´re going to change your life style on Facebook? Is your Instagram full of pictures of raw vegetables? If the decision engine says no, it will also increase the risk score and thus asking for other forms of transaction authentication. This could be a push notification asking for your confirmation to your mobile application which is additionally protected by your finger print. Or you could be asked to take your selfie at the place where you´re located. This selfie you would take anyway, so it is actually just a fun way to authorize the dinner. Or maybe the smart engine would just decide that a call back to confirm the transaction by voice is the right approach this time. All of this just depending on your personal preferences and our smart decision making.
Nice side effects for your business
Knowing more about your customers will not only help you to protect them and to offer them a better service. The structured knowledge of their needs and likes, will also enable you to provide a more targeted marketing at the right moment when you know they are more likely to positively respond to your proposals. Structured knowledge is the key word here, because just simply having the data available, will not enable you to improve the conversion rates. Only smart way of analyzing this data automatically and triggering the right actions and the right time will do so.
Solution from the future? With Specific-Group, you can have it today.
Does this all sound too good to be true? It does not have to be the case, if you talk with the right partner.
We at Specific-Group have a long experience of transaction banking in the European market, with many of our consultants having long working experience in the top financial institutions through-out the region.
Additionally, with our IT expertise, we can offer your tailored made solutions from A as in Analyzing your specific situation and your needs with our team of experienced business analysts to Z, as in Zzzz being the sound of your peaceful sleep. Because with us, you will not need to worry about digital fraud anymore.