Why omnichannel retailers find it hard to spot fraud

Why omnichannel retailers find it hard to spot fraud

Faith Ocampo Published on August 22, 2016

businessman in red blindfolds hands up

Omnichannel ecommerce is driving the future of business with its fast growth rate and consumers’ large-scale approval, but it’s also exposing brands to greater fraud risk.

In recent years, multichannel ecommerce has been gaining popularity as brands strive to provide a consistent purchasing experience. Now that various payment methods are also available, we know that this trend is here to stay.

delighted woman excited sitting couch with shopping bags
Ecommerce’s hassle-free processes motivate consumers to spend more than what they’d normally shell out in single-channel and in-store transactions.

By 2017, cross-channel retail sales may reach up to $1.8 trillion from $1.2 trillion in 2012, according to a report published by business and tech research firm Forrester. Online shoppers enjoy plenty of benefits with multichannel buying, as it’s fast, convenient, and flexible. This hassle-free process even motivates them to spend more than what they’d normally shell out in single-channel and in-store transactions.

Brands are aware of these promising opportunities. As a result, they’re trying harder to meet people’s demands for multichannel availability in addition to in-store interactions. They’re embracing mobile and desktop platforms while improving customer service in order to make seamless journeys possible.
However, this increase in the number of access points between brands and consumers exposes retailers to a greater risk for fraud. Now that business owners manage multiple touchpoints, the risk management process has also become more complex. Here are the main challenges that brands have to deal with when combating fraud across various points of sale.

β€’ Building a cross-channel fraud detection strategy

business team huddled in meeting using tablet smartphone

Different types of fraud take place in each touchpoint, and therefore, different prevention techniques must also be used.

When it comes to ecommerce, fraud can mean a lot of things, including fake payment details, stolen credit card numbers, and refund or promo abuse. Different types of fraud take place in each touchpoint, and therefore, different prevention techniques must also be used.

Because of this, it’s not surprising that many retailers find it hard to create a comprehensive and well-consolidated plan for fraud detection and management. Some brands may start by creating separate strategies for each channel, but integrating them to capture the omnichannel retail process is the real challenge.

β€’ Monitoring transactions

eye glasses on clipboard of document reports charts graphs

Through omnichannel ecommerce, customers are able to start and end purchases using multiple platforms. They may browse product catalogs on their phones, transfer to the desktop to load up their carts, and then pick up the phone to ask for delivery updates.

Fraud analysts must be able to follow this multichannel path to find and verify suspicious information. Brands thus need to have effective tools that would let them capture and organize all pertinent data given by customers via different touchpoints. In this case, customer relationship management apps and tools for data analytics have an important role to play.

β€’ Designing training programs for fraud analysts

business team in meeting in front of laptop

Fraud analysts aren’t just people with superb tech skills, although a thorough know-how about various touchpoints is non-negotiable. Aside from this, they also need to analyze information and pay keen attention to small details. These aptitudes would let them perform various sub-tasks involved in fraud analysis such as moderating user-generated content on websites and social media, investigating customer transactions, and validating payment details.

It can be challenging to design a training program that places the right amount of emphasis on each of these key skills. On top of this, fraud analysts are expected to be able to make smart decisions independently, as any mistake they make can be costly for the organization.

β€’ Aggregating and analyzing data

business executives looking over printed charts

The backbone of effective business risk management is a well-thought out data aggregation and analysis approach. When retail brands are able to fully interpret the fraud-related data they have, they gain a lot of useful insights. It becomes easier to uncover any arising patterns, style, and techniques that cybercriminals use across multiple channels. This way, brands will be in a better position to guard themselves against fraud.

Faith is a digital media enthusiast aiming to become an active part of the tech world by sharing her insights. She likes to blog about everything digimarketing, technology, and social media.
JOIN US ON FACEBOOK
Open Access BPO
Open Access BPO2 days ago
To build a truly customer-centric organization, your #CustomerExperience team must be highly emotionally intelligent.

Here are the 5 advantages of cultivating #EmotionalIntelligence among your #CallCenter staff: https://buff.ly/43uHbcu

----------
Connect with an #outsourcing firm that can deeply connect with your customers: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CX #CustomerSupport
Open Access BPO
Open Access BPO2 days ago
Love knows no boundaries, and this month, we celebrate the beautiful #diversity that makes us who we are. 𝗣𝗿𝗢𝗱𝗲 π— π—Όπ—»π˜π—΅ honors and uplifts the LGBTQIA+ community, their achievements, and their ongoing fight for equality.

Open Access BPO joins the LGBTQIA+ community in celebrating authenticity, acceptance, and love this #PrideMonth.

Let's all spread love in all of its forms! Happy Pride!

#WeSpeakYourLanguage
#PrideMonth #Pride2023
#OASpeaksWithPride
#OneWithDiversity
Open Access BPO
Open Access BPO2 days ago
#FlashbackFriday: Revisit an enlightening blog post that delves into the historic Stonewall Riots, a pivotal moment in #LGBTQIA+ history.

Let's honor those who paved the way for progress, sparking a movement that continues to inspire change today: https://buff.ly/3C9zdd8

#WeSpeakYourLanguage
#PrideMonth #InclusivityMatters
#PrideMonth #Pride2023 #PrideHistory
#OASpeaksWithPride #OneWithDiversity
Open Access BPO
Open Access BPO updated their profile picture.3 days ago
Open Access BPO
Open Access BPO3 days ago
Companies lose billions due to poor #CustomerService. But more than the monetary loss, giving customers reasons to leave can incur a far greater impact on your business.

Read: https://buff.ly/43xXepW

----------
Step up your #CustomerRetention game by #outsourcing to a #CustomerSupport expert: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CustomerCare #CallCenterOutsourcing
Open Access BPO
Open Access BPO3 days ago
The idea that brands should add value to their customers' purchases and transactions is probably one of the most commonly talked about #CustomerService and retention strategies.

But what does "added value" really mean for customers?
Read: https://buff.ly/45Ahj0N
----------
Elevate customer experience by partnering with a #CallCenter that goes the extra mile 24/7: OpenAccessBPO.com/get-started/

#WeSpeakYourLanguage
#CustomerSupport #BPO
#CustomerExperience
Open Access BPO