Business growth depends on opening new channels, expanding offerings, and extending into new geographies and markets — all whilst maintaining a positive customer experience that is relevant and consistent. Without this, it is hard to build strong relationships with your customers and create brand loyalty.
Typically, product and marketing teams (who generate business demand) view fraud teams (who minimise financial loss) as a block to their efforts. They see fraud teams as creating unnecessary obstacles and points of friction that can result in lost business. This is a legitimate concern given fraud strategies in the past have been overly aggressive, or did not match the nature of the transactions.
Here are a few examples of how this has happened:
- Adding more security challenges for different products or channels undermines a seamless customer experience by creating new hoops for customers to jump through and more processes for them to follow. Customers simply do not understand why security for an existing relationship with your product or service can’t be automatically extended to new products and channels.
- Declining transactions in order to prevent possible fraud often results in customers using other credit cards at the point of sale; this may be a temporary inconvenience, or it may mean that you lose your coveted “top-of-wallet” position.
- Putting longer hold times on transactions in order to confirm legitimate transactions can result in financial difficulties for customers; customers today have a lower threshold for inconvenience and a greater willingness to change providers, so these kinds of fraud measures can lead to customer defection.
Given this context, relationships are often strained between teams on the product and marketing side and their colleagues in fraud prevention. Unfortunately, this benefits the fraudster, who counts on organisational silos to exploit blind spots and evade detection.
The question is: what are the best practices for aligning revenue goals, business growth and fraud mitigation? Read our Global Fraud Report for more insight on fraud.