The notoriously impatient Willy Wonka character Veruca Salt can’t hold a candle to today’s consumers, many of whom expect their every wish and command to be granted right-this-second. In light of this speed of want attitude, the on-demand market in the U.S. has rocketed to incredible heights, surging from a $22 billion dollar industry in 2015 to a $34 billion dollar industry in 2017 – with an expectation to become a $57 billion dollar industry by the end of 2018.
One aspect of this new on-demand culture is the expectation of instant online purchasing power, when a consumer can bypass traditional online payment security checks and buy something with just one click – or even one voice command – on their computers, tablets, phones and digital assistants. And though insta-pay is increasingly a feature businesses need to provide in order to remain competitive, real-time payments have the risk of coming with real-time fraud.
In order to minimize friction for customers who expect easy payment action, more and more businesses are playing with less and less information required before checkout and less and less time spent reviewing transaction activity. While this is a very convenient and perfect situation for trusted customers, it’s also a very convenient and perfect situation for fraudsters. Transactions occur immediately without much time (or any time) for red flags to go up and for manual fraud review to take place – an opportunity criminals are more than happy to exploit.
A Real-Time Fraud Solution To The Rescue
The good news is that businesses do have the ability to stay one step ahead of fraudsters looking to take advantage of immediate payment vulnerabilities. One of the most popular and effective tools in today’s insta-pay environment is an all-in-one fraud prevention software solution, some of which are powered by machine learning. Just as their pre-ML rule-set fraud prevention counterparts were able to do, machine learning fraud solutions perform in real-time. The way they differ from legacy programs is that they’re able to utilize the most-up-to-date AI technology in the world to accurately detect anomalies across every transaction and channel. This allows fraud managers to not only spot and block fraud attacks in the exact moment they occur, but also to seamlessly approve the majority of one-click purchasing activity with extremely low false positive rates.
As with any decision in the payment world, a business must finely balance customer convenience and expectations with risk management. Today’s sophisticated fraud solutions allow enterprises to deliver friction-free real-time purchasing power while keeping fraud risks low, but is it worth the investment?
In the past, complicated fraud prevention implementation and high costs associated with upgrades deterred businesses from exploring the option of fraud prevention advancements. But things are different at RISK IDENT. Our result-driven products provide a simple process to import and export customer and transaction data and then deliver cost-efficient fraud protection. This keeps a business at the forefront of current and future payment innovations — and that is an investment worth making.
To learn more about how RISK IDENT’s self-developed anti-fraud software solutions can help your business safely provide real-time and one-click payments, feel free to request more information at firstname.lastname@example.org.