Ai Editorial: Fraud prevention today can not only help in automating decisions to pave way for authentic transactions and decline high-risk ones, but also go beyond payment-related aspects, writes Ai’s Ritesh Gupta.
18th August, 2021
If you are keeping a tab on fraudulent activities or transactions, then how to make the most of this data as a merchant?
It is a vital area to focus on as travel companies are in the recovery phase. A mechanism, based on data collection, analytics, requisite infrastructure along with a skilful team, in place can not only help in differentiating “good customers” from bad ones, but it can also help in making the most of fraud-related data to become smarter in their overall decision-making. Fraud prevention today can not only help in automating decisions to pave way for authentic transactions and decline high-risk ones, but also go beyond payment-related aspects.
Kount has explained how fraud data can help in deriving better results from marketing campaigns. For instance, how a company realized that TikTok was resulting in account fraud and as a result fraudsters were exploited a promotion for free Amazon gift cards! The data not only meant that the company got to the bottom of what was transpiring fraud, but also highlighted the inefficacy of a marketing initiative. So looking at aspects in a detailed manner – customer acquisition, order value, chargebacks etc. – can help in improving key metrics.
Kount also explained how fraud data can help companies upsell and cross-sell products to loyal customers.
Prioritizing action on fraud data
Finding ways to count on such data should be prioritized considering the fact that conducting the check for the legitimacy of a transaction in a fraction of a second demands time, budget and resources. For instance, when we talk of key infrastructure-related areas for fraud detection, the turnaround comes from having the capability to analyze data via cloud-scale data ingestion and real-time analytics. To garner and examine a huge magnitude of transaction data calls for a vigorous database component for storage and management. So once fraud data is being garnered, travel merchants must look at how the same can do more than to just stop fraud.
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