1st May 2024
Imagine you are gung-ho about a trip, and you have paid for the same at your end. But at that time a message pops up conveying that the transaction is in process and is going to be validated first. This tends to happen, for instance, quite commonly in cross-border transactions. You wait for the verification and eventual confirmation.
While a legitimate consumer wouldn’t be pleased at all if it were to fail, a merchant on its part has to assess the authenticity of the travel shopper as it comes across certain doubtful pointers. Cutting down on unnecessary checks is high on the priority of travel merchants.
So, what goes at the merchant’s end? What is being done to segregate a good customer from a bad one without compromising on the user experience?
It is fascinating to evaluate how a fraud and risk intelligence team working for a merchant goes about the same. Manual decision-making vs. automation, how to ensure every decision is backed by data, who takes the liability if a fraudulent transaction takes place and so on are all intriguing decisions.
Learning from other industries
In this context, it is worth evaluating cases like how Kinguin, a global gaming company with over 18 million customers, has managed to lower fraud rate by “87% since mid-2022.
Reflecting on the journey, Egemen Ertop, Head of Risk & Fraud Intelligence at Kinguin, indicates that the company is benefiting from behaviour-based strategies, automation, and machine learning.
Some of the highlights of Kinguin’s approach:
- Focus on UX – leveraging AI to handle the bulk of traffic, cutting down on friction unless there’s ample evidence of fraudulent activity.
- Counting on communication with various stakeholders
- Dealing with industry-wide lack of fraud education – informing the gaming community at large, sending Timely notifications to users, updates regarding any fraudulent activities etc.
- Cultural shift within the company – not running away from adaptability, aligning the team with the company’s evolving standards and expectations etc.
Hear from Egemen Ertop at the upcoming “LSA May Trends Webinar: Fraud Case Study with Kinguin”:
https://loyaltysecurityassociation.com/events/upcoming-events/may-2024-kinguin-case-study/
By Ritesh Gupta, Ai Events
