Dynamic friction keeps bad actors at bay, while trustworthy identity verification networks (ID networks) keep good consumers transacting.
Brad Wiskirchen, senior vice president and general manager at Kount, an Equifax Company, told Karen Webster that establishing a trusted identity through technology and a flood of data points is critical to making commerce safer and unlocking digital experiences in the long run.
He claims that the same technologies can “adapt” friction to each and every online encounter, a subtlety that will be crucial as new attack vectors, particularly those involving identity fraud, gain traction.
“The trending data indicates that fraud is not going away,” Wiskirchen said.
According to Juniper Research, merchants’ total losses from fraud might approach hundreds of billions of dollars over the next few years, topping $340 billion.
Drill a little deeper, and the roots of that negative impact on businesses’ bottom lines have been firmly established. Wiskirchen observed that various attack channels have increased in the last year: card, not present fraud remains a favorite of criminal actors, with most shops reporting an increase in this activity.
Synthetic ID fraud is on the rise, and more bogus accounts are being generated than ever before. According to him, the majority of businesses have observed an increase in bogus chargebacks and card testing techniques.
“More than half of the merchants we’ve spoken with have seen an increase in these efforts, and account takeover fraud is always present,” Wiskirchen added.
Only one fraud vector saw a decrease: bot assaults from the same IP address.