August 24, 2016
Customers Come First, Even While Fighting Fraud
Jan. 29, 2015
The primacy of the customer was a theme at a three-day gathering of fraud professionals in Phoenix this week. At an executive summit hosted by antifraud provider 41st Parameter, a succession of presentations and panels highlighted the challenges faced by fraud and security departments in every merchant vertical and financial institution tasked with securing critical data and rooting out fraud while simultaneously protecting the customer experience.
In an industry that has mostly concerned itself with doing whatever it could to reduce a company’s loss and exposure to fraud—many times in direct opposition to other business units more concerned with making things as easy as possible for the customer—fraud prevention has undergone what 41st Parameter CEO Alan Naumann calls a paradigm shift.
“The customer is determining the path,” Naumann said. “Consumers want to interact with a call center, with a Website, they want to have an app. They want to walk into a branch and have everything easily and conveniently work across all those channels. That creates an incredible challenge [for fraud departments]. We know if you make it incredibly easy, you make it incredibly easy for the bad guys.”
Naumann acknowledged, however, that the paradigm has shifted and this is the reality for fraud professionals who are expected to work invisibly against sophisticated foes. But, increasing consumer awareness of security and antifraud measures could provide an opportunity for technology providers in the future, according to Steve Casco, CEO of CardNotPresent.com and the CNP Expo, who participated on several panels at the event.
“I think you’re going to see [antifraud] companies become consumer facing brand names,” Casco said, drawing an analogy with chip company Intel that became a brand consumers were aware of with ‘Intel Inside’ stickers on every PC. “Organizations that are online taking payments are going to start wanting to put those names on their Website to say ‘not only are we taking care of you, but we’re taking care of you with these other companies. We are not alone. Look who we’re working with.'”