You’ve spent the last two years building your startup from the ground up. You’ve invested hundreds of thousands of dollars in developing your eCommerce platform and marketing it to customers who need your goods. There’s only one problem: Your customer base is plagued by account takeovers, and you’re losing money as a result.
Account takeover fraud isn’t just a loss for individual companies; it’s a drain on the entire economy — costing billions every year. One solution is identity verification technology, which verifies people’s identities during transactions without compromising their privacy or security.
The psychology of fraud
You should be aware of the psychology of fraud. Fraud is a crime of opportunity. Fraudsters look for security gaps in eCommerce platforms, and they will exploit the weakest link in your company’s security infrastructure. They are opportunists who are not concerned about getting caught or losing money – they only want to steal as much as possible before getting away undetected.
The problem with passwords
Passwords are notoriously difficult to remember. They’re also easy to lose and can be stolen by hackers. Worse, they aren’t even secure.
A typical person has a hard time remembering a dozen different passwords for all the websites they use, so most people use one or two online password managers (such as LastPass) to help them keep track of their many log-ins across different platforms. But this is problematic because it means you’re putting all your trust into one central point of failure: if that service ever gets hacked or goes offline, or simply doesn’t work one day, then all your accounts will be compromised at once.
Antifraud measure for your eCommerce platform
Identity verification platform isa great tool to have in your eCommerce arsenal. While they may seem like an unnecessary expense, you’ll see that they bring about several benefits for your business. Here are 3 most important benefits:
Fraud reduction: By verifying identities through third-party providers, you can ensure that the people who use your platform are real and trustworthy. This will help protect both you and your customers from being scammed by fraudulent buyers or sellers who commit scams by pretending to be someone else.
Reduce fraud chargebacks: It is a way to prevent fraudulent transactions from occurring on your platform by verifying the identity of customers when they make purchases. This helps you avoid expensive chargebacks from occurring in the future.
Customer Retention: Users feel more comfortable buying from your platform when they know their information is verified by trusted third-party companies. They’ll be more likely to make purchases from you again in the future because they know their information is safe with you
It’s evident that identity verification platforms are a necessity for eCommerce operations, but the real question is how to choose the right solution for your business. There are many options available in the market today, so you need to determine what features and capabilities you require before making an investment decision. For example, some solutions only support basic functions like user authentication while others include advanced capabilities such as risk-based screening and behavioral biometrics.
You’ll also want to look at pricing models since they vary between vendors; typically pay-as-you-go solutions allow customers to save money on services they don’t need or use frequently whereas subscription plans give users access to all functionality all of the time with no additional fees.