The Simility Blog
Unlocking Business Growth in 2019
Rahul PangamJanuary 10, 2019
In a landscape plagued with sophisticated fraud threats, technology driven fraud fighting solution can help digital businesses unlock revenue growth and customer loyalty
Digital business platforms, including financial institutions and fintechs, are continually innovating to offer enhanced customer experiences. They are also leveraging technology to gain a competitive edge by introducing innovative products and services. However, amidst such disruptive services, changing regulations, and rising customer expectations, avenues for fraud are also increasing. Armed with sophisticated techniques, fraud is increasingly becoming strategic and targeted. Therefore, in 2019, digital businesses will be required to strike a fine balance between fraud prevention and seamless experience for genuine customers, to attain growth.
New Year, Old Regrets
2018 was the year of open banking when directives such as the revised Payment Services Directive (PSD2) were introduced in the European Union. Other countries and regions too began inching towards a more formalized regime for data sharing with third party providers including banks, fintechs, technology companies, and even some retail companies. We believe that in 2019 more banks and non-banks will start taking advantage of open banking to power their products and build new experiences by linking data from the products and services that address customers’ financial needs. While these policy changes do provide customers with the convenience of choosing how and who they transact with, as well as access to innovative services and products, it also creates multiple crossroads that the data traverses through, providing fraudsters with many opportunities to mine this data.
Customers, on their part, have become more tech-savvy and are increasingly transacting online. As a result, they have come to expect faster, frictionless experiences throughout their digital journeys—be it for payments, onboarding, or log-ins. Add to this the variety of apps, social media platforms, and devices customers use, the attack surface continues to increase manifold providing fraudsters with multiple avenues to access personally identifiable customer details.
Further, fraudsters are mighty skilled in their craft. They use sophisticated tools and techniques such as phishing, social engineering, and malware to defraud their targets. Recent spate in data breach incidents proves that fraudsters will continue to exploit vulnerabilities in business networks and use stolen data for numerous financial crimes. In the year gone by, fraudsters were successful in mining personal customer details such as names, social security numbers, credit cards, addresses, and phone numbers that were then used for card not present (CNP) fraud, account takeover, fraudulent account (bank, utilities) creation, and obtaining loans. We anticipate fraudsters will continue to build complete synthetic profiles from bits and pieces of available credentials and use them for multiple types of fraud.
Businesses Need Enhanced Fraud-fighting Capabilities
In the face of evolving fraud, technology-driven, digital businesses need to step-up their fraud-fighting capabilities so they can ward off threats proactively. Also, these businesses must comply with the prevailing regulations so they can be on the right side of the law. As a result, in 2019, businesses are up against the challenge of striking a fine balance between fighting fraud and complying with the regulations while ensuring secure and seamless experiences for their customers.
Legacy solutions cannot keep up with the changing dynamics of today’s digital businesses that are probably at the greatest risk, than they ever were, from increased cyber threats. Businesses, therefore, need cutting-edge, technology-driven solutions that help them prevent fraud from eating into their revenues. Businesses need solutions that enable them to assess risks in real time for instant user authentication and increased acceptance of legitimate transactions—solutions that help businesses lower abandonment rates, increase revenue, and enhance customer loyalty.
Leverage Simility’s Expertise
Simility, a PayPal service, offers real-time risk and fraud decisioning solutions to help protect global businesses. With its omni-channel fraud fighting solution, the Adaptive Decisioning Platform, Simility enables businesses to ward off evolving fraud threats and helps ensure a seamless customer experience while staying compliant with prevalent regulations. The advanced, machine-learning-driven Adaptive Decisioning Platform uses artificial intelligence (AI) and big data analytics to unearth subtle patterns that help solve complex fraud problems in real time while reducing friction for genuine customers.