Canadian Businesses Must Deploy Disruptive Technologies to Mitigate Risks of Online Fraud
July 17 2019 - 03:48PM
The increased sophistication of online fraudsters continues to pose
significant risks to Canadian businesses and the customers they
serve. Deploying advanced fraud prevention solutions that mitigate
cyber frauds - without compromising the customer experience – is
gaining ground fast. It calls for businesses to evolve integral
aspects of their cyber security programs – from account origination
and detection, through to response.
Anne-Marie Kelly, Executive Director of Identity Management and
Fraud Solutions for TransUnion Canada says, “With the explosive
growth of e-commerce in Canada and additional online shoppers to be
added to this segment each year, Canadian businesses must embrace
disruptive fraud solutions that help to proactively identify
fraudulent situations, enable a friction-right customer experience,
while simultaneously mitigating associated risks.”
To-date, businesses have been challenged with implementing the
right fraud prevention and detection technology without
compromising the customer experience. Fraud prevention and
detection solutions often lack flexibility to adjust in real time
and can complicate end user verification processes – resulting in a
poor customer experience. Research studies commissioned by
TransUnion and conducted by research and advisory firm Forrester in
2018i found that current fraud prevention measures decrease
customer engagement and deter potential customers from future
transactions. At the same time, the study revealed the extent of
the issue, with 96% of Canadian financial firms experiencing some
sort of fraud in the past two years. In addition, 70% of fraud
detection technology decision makers from financial services agreed
that fraudsters are always one step ahead, and 92% acknowledged
having difficulty detecting and mitigating fraud.
“As more consumers move online, data compromises and fraud
threats continue to rise in Canada. Fraudsters are constantly
developing new ways to outwit systems and processes, wreaking havoc
and potentially causing huge financial and reputational losses.
Yet, that doesn’t change the fact that businesses need to focus on
enhancing customer satisfaction as well as catering to rising
expectations of a flawless transaction experience through online
channels. Today’s businesses need to embrace fraud solutions that
deliver safe, fast, efficient and streamlined processes – or
customers will go elsewhere,” said Kelly.
IDVision with iovation is TransUnion’s enhanced fraud suite that
unifies personal and digital identities by combining TransUnion’s
comprehensive database of consumer records, with iovation’s global
digital intelligence, which is based on experience with over 6
billion devices. iovation is a TransUnion company focused on making
the Internet a safer place for people to conduct business. IDVision
with iovation enables genuine customers to have a secure and
seamless experience while mitigating fraud risks by:
- Establishing Identity: Identity is verified
against a broad set of personal and digital data for greater
identity confidence.
- Authenticating Customers: Validates the
customer’s claimed identity to help confirm they are who they say
they are, employing methods that match the risk level by utilizing
authentication at specific touchpoints.
- Preventing Fraud: Fraud risk of online
transactions or identities is assessed to identify potentially
fraudulent actions or behaviours. Suspicious behaviour can be
investigated by the business to identify inconsistent data
elements.
Underscoring the need for a comprehensive approach to identity
management and fraud prevention, a TransUnion commissioned
Forrester studyii uncovered that 68% of financial services firms
reported their customers increasingly interact with them through
digital channels instead of face-to-face. Furthermore, 62% of
financial institutions indicated that the growth of online
interactions has increased fraud and identity theft risk.
“Identity verification needs to mature from traditional methods
of using a set of core documents and pieces of information to a
more holistic approach that maps a customer’s digital footprint
based on the devices used and usage patterns,” added Kelly. “It’s
about time businesses embrace multi-layered identity verification
solutions that combine personal and digital data for safeguarding
customer interests and delivering long-term value. Facilitating a
secure and seamless customer experience is fundamental for
businesses to effectively stay competitive and thrive in a digital
world.”
About TransUnion (NYSE: TRU) Information is a
powerful thing. At TransUnion, we realize that. We are dedicated to
finding innovative ways information can be used to help individuals
make better and smarter decisions. We help uncover unique stories,
trends and insights behind each data point. This allows a variety
of markets and businesses to better manage risk and consumers to
better manage their credit, personal information and identity.
Today, TransUnion reaches consumers and businesses in more than 30
countries around the world on five continents. Based in Burlington,
Ontario, TransUnion Canada provides local service and support
throughout Canada. Through the power of information,
TransUnion is working to build stronger economies and families and
safer communities worldwide. We call this Information for Good.
Visit www.transunion.ca to learn more.
About iovationiovation, a
TransUnion company, was founded with a simple guiding mission: to
make the Internet a safer place for people to conduct business.
Since 2004, the company has been delivering against that goal,
helping brands protect and engage their customers, and keeping them
secure in the complex digital world. Armed with the world’s largest
and most precise database of reputation insights and
cryptographically secure multi-factor authentication methods,
iovation safeguards tens of millions of digital transactions each
day.
For more information or to request an interview,
contact:
Kevin Braganza, Ketchumkevin.braganza@ketchum.com
416-355-7406
i TransUnion commissioned Forrester Research, Inc. to conduct
the two studies: Fraud Detection and ID Verification in Financial
Services (August 2018), and Insurers: Strike The Right Balance
Between Fighting Fraud And CX (September 2018).
ii Forrester Consulting conducted three TransUnion-commissioned
studies and surveys. Participants included 465 fraud detection and
prevention professionals, including1
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