“Innovation is the specific instrument of entrepreneurship…the act that endows resources with a new capacity to create wealth.” ~Peter F. Drucker
Innovation is defined by the Merriam-Webster Dictionary as the “introduction of something new” or a “new idea, method or device”. Innovation can be found everywhere. We live in a society that is surrounded by innovation – from large companies like Apple, Google and Facebook, to small and medium sized organizations – all revolutionizing the way we do business and even live our lives.
One area that we have seen substantial innovation in recent years is in facilitating customer-not-present interactions and commerce. Our society is growing more and more connected every single day. As a result, businesses are now increasingly interacting with their customers where neither party is physically located at the point of transaction. With this comes substantial opportunity for organizations – but also a lot of complications. We recently published an infographic called “The Evolution of Global Verification” that addresses some of these complications and how identity verification has grown into a global process.
As businesses evolve – so do fraudsters (and not always in that order). Fraudsters are constantly changing their tactics, so it is imperative that organizations do as well in order to stay ahead of new fraud trends. Here are two best practices to implement in your business in order to employ innovation to fraud prevention:
- Configurability – proofing an identity is no longer sufficient given the sophistication of fraudsters. Organizations should partner with an identity verification / fraud prevention platform that goes well beyond simple identity verification in order to detect and deter fraudulent activity. Configurability is an important innovation to integrate into your program so that you can address the changing needs of identity verification and fraud. Make sure you have the flexibility to quickly make configuration changes that directly control the approval/decline strategy that can be deployed automatically – without having to rely on IT resources or customer service. A/B testing is also recommended to maximize customer acquisition and revenue while deterring fraud.
- Collaboration – actively collaborating with industry experts in your respective market is another way constant innovation is facilitated. The key is in finding a solution and network that acts as a hub for monitoring potentially fraudulent activity, providing a platform for collaboration and innovation among users. For example, IDology has evolved into a leading voice coordinating the fight against fraud – introducing industry-wide collaboration tools that have been instrumental in significantly lowering fraud rates.
So, keep on innovating…it is an essential element in stopping fraud in your business. IDology is constantly innovating and will continue to expand the services we provide. Please contact us for more details on our latest innovations!