Dynamic Friction: Setting Roadblocks for Fraudsters, Removing Barriers for Trusted Users

Dynamic Friction: Setting Roadblocks for Fraudsters, Removing Barriers for Trusted Users

November 14, 2019

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The expectations of online customers have changed drastically in recent years. They want the least amount of friction in their online experiences, and with thousands of companies vying for their business, customers have the upper hand. Speed and convenience set apart market leaders from their lagging competitors, and successful businesses are prioritizing customer experience over everything.

But this prioritization can’t be reckless; some amount of friction is required to stop fraud. Additional layers of verification—multi-factor authentication (MFA), card verification values (CVV), etc.—are needed to challenge fraudsters and weed out suspicious activities. But, applying verification indiscriminately comes at a cost: it creates friction that lowers conversion rates and increases the chances of insulting your trusted customers, potentially driving them to your competition permanently.

So, how do you deliver positive experiences to your trusted users, block risky actions, and thoughtfully apply friction to those actions that may need an additional layer of authentication?

Put an end to treating customers like fraudsters with Dynamic Friction

Verification of potentially risky actions shouldn’t feel like going through an invasive airport screening for your trusted users. Known good users can bypass additional verification, while unknown or potentially risky users get additional screening. This philosophy is at the core of a new approach called Dynamic Friction: the optimal application of friction to user journeys based on behavioral and situational attributes, so your fraud protection doesn’t result in customer insult for legitimate users. Dynamic Friction is powered by Digital Trust & Safety, which strategically aligns risk and revenue decisions, and is supported by processes and technology.

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The above image illustrates a user journey, from account login to checkout. As a user moves through the journey, each interaction is evaluated for risk. If the level of potential risk reaches a certain threshold, additional verification is applied. If the interactions are deemed trustworthy, the additional verification is removed, giving the user a more streamlined experience.

Dynamically applying friction to the user journey stands apart from legacy fraud prevention solutions, which apply friction in the same way to all users, at the risk of alienating good users and creating false positives. Additionally, legacy solutions look at only one specific event in the user journey, while Dynamic Friction considers the user journey holistically, from end to end.

It’s time to introduce Dynamic Friction and start enabling growth

Don’t get stuck relying on obsolete solutions that are killing growth – and potentially damaging users’ trust in your business. To learn more about how to begin implementing Dynamic Friction into your fraud prevention methodology, download our ebook, Dynamic Friction: Delivering the Right Experiences at the Right Time.

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