E-commerce security requires better doors, not locks.
While convenience is the primary concern for retail consumers, security is not far behind. Despite the fact that unexpected costs are the primary cause of abandoned baskets, 21% of users withdraw due to the complexity of the login and purchasing processes, and 17% do so due to security concerns.
It appears that security and convenience are diametrically opposed for e-commerce merchants. To safeguard accounts and systems, it is necessary to establish barriers that deter malicious actors; however, genuine consumers must also surmount these obstacles. Balancing security and convenience is a significant challenge, despite the fact that they may coexist.
Increased hazards for internet commerce
Companies must implement strategies to mitigate a diverse array of schemes, not all of which are perpetrated by negative actors. Customers may also commit fraud. Retailers are conducting battles against:
Account Takeovers
In the event that a fraudster gains illicit access to an account, an account capture takes place. This account could be either a consumer or staff account. To conduct orders, take customer information, modify customer data, and steal loyalty points, among other unlawful activities, bad actors use client accounts. Staff credentials are employed by hackers to gain access to sensitive consumer data and seize control of the retailer’s system. In order to execute this approach, fraudsters employ automated assaults, credential stuffing, social engineering, and phishing.
Fraudulent payments
The typical image of payment fraud is a malicious actor attempting to obtain consumer information or credit card numbers; however, this is only one variety. A consumer submits a chargeback with their bank for a valid transaction, which is a form of benign fraud that retailers also encounter. Consumers may initiate a return process and either return the incorrect item or return the item in a used condition.
● Fraudulent account creation
In order to circumvent purchase restrictions and payment barriers, as well as to take advantage of free trials and new user discounts, numerous individuals have established numerous accounts using a variety of email addresses. Multi-accounting is a fraudulent practice that is extremely expensive for merchants.
• Spoofing of location
In order to conceal the location of their device, certain users modify their IP address, utilize a VPN, or implement other strategies. They may do this in order to circumvent geographical restrictions on services like streaming services, reduce costs, or conceal their activities when engaging in other fraudulent activities. Although VPNs have legitimate applications, they may also prove to be exceedingly advantageous to fraudulent actors.
In order to mitigate fraud, numerous retail websites implement one-time passwords, multifactor authentication, CAPTCHAs, and stringent password restrictions. Regrettably, this results in an increasing amount of friction for consumers. Therefore, how can merchants reduce the inconvenience?
Approaches to strike a balance between security and experience
Smarter doors are the solution to averting fraudsters, not the installation of additional locks. There are numerous opportunities for companies to mitigate consumer friction.
● Single sign-on
A prevalent illustration is Google’s Single Sign-On. Third-party applications may be linked to individuals’ Google accounts, which enables these businesses to use Google as their identity provider. SSO simplifies the process of establishing, remembering, and typing passwords. Users frequently log in with a single click.
● Biometric authentication
Nearly 65% of customers believe that on-device biometric authentication is more user-friendly than conventional methods that necessitate a password and a one-time code. Biometrics are unique physical characteristics, including fingerprints and facial recognition, that are both difficult to replicate and effortless to access.
● Adaptive authentication
In order to implement a stratified security strategy, organizations may implement risk-based assessments. This method allows merchants to evaluate the potential peril of individual logon attempts. For instance, a device that is returning to an account does not pose a fraud risk; however, a device that is logging in from a distant nation may be using compromised credentials or location deception. A credential-stuffing attempt may be indicated by an account that has experienced numerous abortive password attempts. Adaptive authentication enables businesses to optimize the client experience by utilizing additional authentication techniques, such as multifactor authentication (MFA), for unverified or questionable logins while not requiring them for trusted devices.
Support for Device Intelligence
For instance, these solutions function as the bouncers at an exclusive nightclub. They illustrate that individuals on the list are granted access to the VIP entrance, while all others are required to present their identification.
Device intelligence facilitates layered security by designating a distinctive ID to each visitor, enabling businesses to identify a device upon its return to the website. These technologies also identify dubious visitors by analyzing device information such as the operating system, screen resolution, and IP address. A bot is the most probable description of a device with exaggerated system requirements. However, a bot with an incorrect IP address and timezone may be misrepresenting its location. More insight into the peril potential is gained by evaluating user behavior, such as the use of the same device to log into multiple accounts. Additional security measures must be implemented by site visitors who have been identified by the device intelligence platform.