The ubiquity of mobile devices significantly influenced the increase in usage of eCommerce platforms over recent years. From purchasing in brick-and-mortar establishments, consumers have moved to the online world to easily and more conveniently buy goods and services. With only a few clicks on their smartphones, they can quickly complete a transaction. They can also opt to have their purchased commodities delivered to their doorstep.
When the COVID-19 pandemic broke out, online shopping became the new norm for many. It allowed consumers to acquire their needed goods and services remotely while avoiding the potential health risks posed by going outside.
Apart from shifting practices among consumers, the global health crisis also drove significant changes and challenges across industries. For example, retailers are challenged to manage the surge in demand for remote services and to meet consumers’ preference for enhanced online fulfillment. They are also faced with the proliferating challenge of improving their defenses against fraud.
While eCommerce has continued to soar, fraud is also on the rise. According to the Federal Trade Commission’s COVID-19 and Stimulus Reports, online shopping-related fraud topped the list of reported fraud cases during the pandemic. Malicious actors use stolen credentials to hack into existing accounts or use fake identities to create new accounts to perform fraudulent transactions and chargebacks. These fraudulent activities can cost retail businesses their reputation, customer trust, and revenues.
To avoid such consequences, online merchants must ensure that they are transacting only with genuine customers. They need to replace legacy cybersecurity systems with more modern identity proofing solutions that are more effective in weeding out the fraudulent individuals early and more efficient in onboarding good customers.
Enterprises can leverage mobile facial biometric identity verification solutions that maximize mobile device features to perform the identity proofing procedure. Using their smartphones, users can simply take a selfie and have it compared to the photo displayed on their provided identity document. In addition, using the same device, customers can undergo a liveness confirmation test for biometric identity matching. The test will confirm a user’s real-time presence by asking them to perform gestures such as blinking, smiling, or moving their head. It helps detect if someone is cheating the system by trying to use fake photos or altered videos.
To further eliminate eCommerce fraud risk, online retailers can supplement their biometric identity verification with identity document authentication that ensures the credential provided by a customer is genuine. Authenticating the identity document through valid credentials is imperative in distinguishing malicious actors from genuine customers.
Driver’s licenses are among the most commonly used valid IDs in the US because they contain the details that will satisfy the process’s identity proofing process’s requirements. Consequently, felonious individuals also utilize forged driver’s licenses to get past eCommerce platforms’ identity proofing measures.
Companies can verify if the presented driver’s license is genuine or fake by leveraging identity document authentication technology. Automated systems use the power of digital technology to scan an individual’s identity document and compare it to known templates in trusted registries, checking for security features that are present only in a genuine state-issued driver’s license.
Moreover, eCommerce platforms must also invest in FIDO 2.0 compliant login credentials for stronger authentication. Many online shopping fraud cases are attributed to weak or compromised passwords. By utilizing FIDO2 authentication solutions, enterprises can replace their knowledge-based authentication systems with stronger cryptographic login credentials for a more secure and convenient means of authentication.
FIDO login credentials are also less susceptible to theft as they cannot be easily shared with other individuals. And often, these cryptographic credentials require a second factor or device-based authentication to be unlocked, thereby reducing account takeover attempts.
Identity assurance is vital among businesses operating remotely. Online retailers must utilize modern identity proofing solutions to bolster their operation’s security, reduce eCommerce fraud, and enhance customer experience while adhering to regulatory compliance. To know more information, see this infographic by authID.