No surprise here: The spike in online traffic through the past 18 months since the pandemic hit us all hard has also given rise to an upswing in fraudulent activity.
To get a sense of size and scope, consider the fact that last year alone there were 4.8 million identity theft and fraud claims reported, up 45% from 2019.
Against that backdrop, now more than ever, safeguarding consumers’ data and determining that individuals are who they say they are as they interact and transact with all manner of companies is critical. But there’s a fine line to walk — a balancing act, you might say — between safeguarding customers and introducing so much friction into the process that they vote with their (proverbial) feet and shift to competitors.
A recent study, Monetizing Digital Intent, done in collaboration between PYMNTS and Neuro-ID, found 38% of businesses surveyed said that adoption of digital authentication solutions is a more urgent priority now than had been seen before the pandemic. That urgency takes shape as 35% of companies surveyed state that their in-place digital processes led to false customer identities. The uptick in online traffic resulted in $56 billion in losses for United States consumers in 2020, with a predicted $721.3 billion in global losses for 2021.
Get the study: Monetizing Digital Intent
At the same time, the risks of false positives comes as companies embrace technology that might mischaracterize threats.
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Behavioral analytics, according to the report, can help craft a layered approach that crystallizes a streamlined customer experience while protecting sensitive data.
The intent to pivot toward more robust digital ID technologies is there: 68% of companies planning to implement digital authentication processes into their flows are doing so, and will do so, in the hopes of increasing transaction conversion rates.
Learn more: Monetizing Digital Intent
