How To Find The Right Balance Between Fraud And The Customers Experience

Per Statista, the amount of e-commerce losses to online payment fraud in 2022 since 2020 is $41 billion. If you think that is bad, get this: it’s supposed to rise to $48 billion by the end of this year.    But wait, there’s more. Messente, a dedicated business messaging platform, notes the surge in package delivery scams. TransUnion's published a study that unveiled a staggering 1500% spike in shipping fraud between 2019 and 2021, likely spurred by the flourishing ecommerce landscape and the surge in digital solutions post-pandemic. What’s more, a 2023 study highlighted that nearly half of all fraudulent emails and texts revolved around package delivery.    Clearly, fraud is on the rise and that means organizations have to protect themselves. So, two-factor authentication, text confirmations, codes, and retinal scans (not really) should be part of every transaction then, right?   Not so fast. Customers don’t like getting hassled during their purchases with extra steps or queries that question whether they are who they say they are. Some might get annoyed enough to create some significant abandonment issues in your e-commerce channel.   So, how do you balance the need to prevent fraudulent activity in your interactions with customers and the need to provide and easy and excellent customer experience? In this episode, managing partner and CEO of Messente Uku Tomikas joins us to explain.   Here are some other key moments in the discussion:   05:07 Tomikas explains that the next big thing in fraud is using AI for it; marking perhaps the first use of AI in customer experiences that Colin isn’t enthusiastic about. 07:07 We begin our discussion about how to be diligent about fraud and security while still providing an easy and excellent customer experience. 13:00 Tomikas explains how organizations are handling this balancing act currently and how their efforts can unwittingly make it easier for fraud to occur.   21:03 We talk about the particulars of how AI can get into the mix with these tricks and personalize the fraud attempts.  27:17  We share the practical advice we have for organizations to deal with this threat without driving customers around the bend with security hurdles.    This has been created in partnership with Messente.   About Colin Shaw LinkedIn recognizes Colin Shaw as one of the 'World's Top 150 Business Influencers.' As a result, he has over 294,000 followers and 78,000 subscribers to his LinkedIn newsletter ‘Why Customers Buy’. The Financial Times selected Beyond Philosophy as one of the best management consultancies for four years.    Colin is a renown keynote speaker and undertakes consultancy work and educational workshops to help organizations improve their Customer Experience.    Click here to learn more about Professor Ryan Hamilton of Emory University.  How can we help? Click here to learn more about Beyond Philosophy's Suite of Services.   Please tell us how we are doing! Complete this short survey.