Zumigo DeRiskify Helps Merchants Build Trust with Their Customers Across the Entire Digital Journey
For e-commerce merchants, the most effective strategy for addressing fraud is to proactively prevent its occurrence rather than rely on post-fraud recovery measures. Zumigo DeRiskify solution leverages digital identity and payment card verification to stop fraud before orders are processed. By analyzing the risk factors of customer’s phone number, payment and other digital information, Zumigo DeRiskify determines the trust scores of each transaction. Merchants can choose to fulfill only the transactions that are low risk, thereby reducing fraud losses by eliminating chargebacks.
But Zumigo DeRiskify is more than that – the solution allows businesses to recover more revenue from fraud losses by reducing chargebacks in a way that ensures a secure, low-friction customer experience, as discussed last week in the blog “Beyond Passwords: Elevating E-commerce Security with Seamless Onboarding and Authentication.”
This week, we will discuss the following key use cases that Zumigo DeRiskify is relevant for.
- Verifies orders by confirming customer identity and payment card details: Card-not-present transactions are risky and easy for fraudsters to take advantage of. Zumigo DeRiskify validates the following digital information with authoritative sources to prevent fraudulent purchases: name and address associated with the phone number and payment method; IP address of the customer’s browser client; email address validity; and geodesic distances between billing address, shipping address and customer IP address. The trust scores based on the above for each transaction allows a merchant to choose to fulfill only the low-risk transactions.
- Improves the customer sign-up/sign-in experience with secure passwordless access: Password management is frustrating and resource intensive for both the user and the merchant. And it is also not the most secure way of protecting accounts, as evidenced from the many data breaches, account takeover scams, and phishing scams. With Zumigo DeRiskify’s passwordless approach, the customer first signs up for an account at the merchant’s store by entering the email address, name, physical address and mobile phone number. Zumigo silently authenticates – without additional steps from the customer – the customer’s mobile phone number and further validates the name and address associated with the mobile account on file with the network operator. Upon verification, the account is created and the customer can start shopping. For subsequent access to the account, the customer can enter either their email address or mobile phone number to sign in. No passwords to remember, to get hacked, or to be replaced regularly. This helps reduce customer friction and increase conversion.
- Reduces checkout friction by pre-filling customer shipping and billing information: Filling out personal information on a mobile phone with small virtual keys is a high friction, high frustration experience for customers. To speed up the checkout process, verified customer shipping and billing information can automatically populate the form to expedite the checkout process. This increases the conversion rate as well as customer satisfaction.
- Refine fraud detection strategy further: Zumigo Deriskify provides a dashboard view of the transactions so that merchants can see how their purchase orders are performing at a glance: the number of total transactions; which are the high-risk orders and customers; how many fraud orders are processed and their related value; the type of merchandise that is high risk; and the location/origins of risky transactions. Merchants can also drill into each transaction for more information. With all these information, merchants can further refine their fraud detection strategy.
Addressing the above key use cases with Zumigo DeRiskify will free merchants from the resource-consuming cycle of fraud chasing, while saving millions from chargeback costs resulting from fraud. Merchants will also maintain the reputation for security and trust, and safeguard the customer’s financial assets.
Tariq Ahmed is Managing Director for Canada at Zumigo. Comments? Questions? Find him on LinkedIn @tariq-ahmed17.