The Retailer Spring Edition 2023

SPRING 2023

23

uk consumers struggle with SCA

80

71

68

60

40

36

Percent of consumers

20

0

Abandon SCA purchase due to frustration

Move to larger retailer due to bad experience

Rank SCA pain at least 5 out of 10

Innovating in operations Beyond investing in a strong tech stack, it’s also important for merchants to feel empow ered to innovate for customers. Drivers of this innovation are simple: provide quick, easy, and effortless journeys without allowing friction to get in the way. In an era of increasing regulatory pressure, this is mainly focused on enabling payments and risk screening to happen in the background without end users ever feeling disruption. Retailers have to contend with changes to consumers’ shifting behaviour - treating online shopping flexibly, buying on the go while trav eling, and sending direct to end destinations or gifts to friends and family. Nearly 9 in 10 UK shoppers (87%) said they shop cross-border when online given the ease of delivery, and as they browse online aisles on a mobile or in-app, these variables need to be accounted for within a merchant’s tech stack. If not properly set up, huge amounts of friction can be introduced to the customer experience, opening up oppor tunities for fraudsters and wreaking havoc on a retailer’s back-end.

The right technology – whether it’s dynamic exemption management, risk analysis, or pay ment optimisation – means that retailers can verify whether purchases made in various circumstances like the above are suspect, or alternatively of very low risk based on previ ous consumer behaviour and data. As fraud becomes increasingly intelligent, having these capabilities built-in could be the difference between the life and death of a business. In conclusion, according to the ONS , online fraud has increased 25% since 2020 despite other forms of crime decreasing. As criminals cotton on to the opportunity provided with online fraud, we can only expect that crime rings will continue to evolve. This digital trans formation is one of the biggest threats facing retailers and their customers in the years to come, so the best thing retailers can do is to combat AI with AI.

As fraudsters are building out their new road maps, attacking faster, harder and smarter will be on top of their mission statement. It is there fore essential that retailers invest, investigate, and innovate to adopt a machine-learning solu tion that can detect and stop fraud in real-time.

Xavier Sheikrojan Signifyd signifyduk@hotwireglobal.com