It’s Never Been More Important to Know Your Customer
The growth of e-commerce is hastening beyond measure, with online retail expected to become the largest retail channel in the world by 2021. As a retailer battling it out in this technology-fuelled and hyper-competitive landscape, you know the importance of keeping pace with the online race. You know the importance of creating frictionless buyer journeys, of mobile-responsive e-stores, of one-click purchasing. Equally important today, however, is the importance of knowing your customer (KYC). Along with sales, e-commerce fraud is also on the rise, rendering efficient identity verification more critical for online merchants than ever before.
The Rise of Retail Fraud
The latest crime figures from the Office for National Statistics (ONS) reveal that retail fraud jumped 27% last year, with the number of recorded offences against consumers and retailers rising to almost one million (923,000) between July 2017 and June 2018. In terms of value, UK Finance’s “Fraud the Facts 2018” report estimates that £310.2 million of e-commerce fraud took place on UK-issued debit and credit cards in 2017, accounting for 55% of all card fraud and 76% of total remote purchase fraud.
Responding to the ONS figures, Josh Gunnel, Head of Fraud and ID Pre-sales at credit reporting agency TransUnion, warned that many retailers are falling prey to online fraudsters as they compete to offer the most seamless customer experiences, allowing their fraud prevention systems and cybersecurity to slip in the process.
“People are spending more time and money online, which correlates with this increase in fraudulent activity,” said Gunnell. “Over half of the fraud reported in the last year is thought to be cyber-enabled, but unfortunately, some organisations do not appear to have adequate controls in place to mitigate the risks. While businesses are constantly evolving their processes to make them as streamlined as possible for the customer journey in an ever more competitive environment, and educating customers on the risks they face in transacting online and from social engineering, they often forget that at the same time, changes they are introducing may unwittingly be making things easier for the perpetrators of fraud too.”
Biometric Identity Verification
Protecting your online business against e-commerce fraud without compromising the ease and quality of the buyer journey can be a difficult balance to strike. Effective identity verification is paramount – but if the process is too slow and cumbersome, you risk losing valuable customers to a more streamlined competitor. And yet, if it isn’t robust, you leave yourself vulnerable to fraudsters.
Your customers want fast, seamless, and pain-free purchases, no matter where they are, nor what device they use to do business with you. In order to give them what they want, whilst simultaneously ensuring that both your business and your customers are protected from the threat of retail fraud, you need an advanced identity verification solution that enables instant authentication of buyers along with their means of payment.
TOC ID Verification has developed the world’s most advanced ID verification solutions for the retail sector. Our cloud-based service can be deployed right at the point-of-sale on any EPOS platform or operating system, ensuring you know the real identity of your customers whilst super-charging the purchasing process.
TOC ID Verification’s AI-powered authentication technology for ID Document Checking, Biometric Facial Recognition and Liveness Detection delivers an accuracy rate greater than 99%, allowing merchants to verify their customers’ identity remotely in the cloud, without the need for any special hardware or software. Using only a laptop, tablet or smartphone, TOC ID Verification’s innovative ID Authentication services enable retail operators to perform robust Know Your Customer processes, regardless of location, platform, or operating system.
TOC ID Verification perform over 5 million identity verification transactions a month, delighting customers all over the world with the most accurate biometric authentication system available today. Enhance the customer experience, reduce the risk of retail fraud, and have the confidence to process greater volumes of higher value transactions in an instant. Get in touch today.