Guilty Until Proven Innocent: How Incorrectly Identifying Good Customers as Cybercriminals Damages Your Bottom LineAugust 27, 2014 By Reed Taussig
Let's say a customer attempts to log in to a retail account using a new, unfamiliar device. If the customer used previously authenticated and trusted credentials (e.g., name, physical address, email address and credit card) to make a recent purchase from another retailer, the device can be authenticated in real time since the customer's key credentials have remained unchanged.
One of the primary benefits of this approach is that it gives equal weight to the identification of both cybercriminals and good customers. Context-based authentication and a global network eliminate transactional hurdles, reduce friction and stop any further damage to the customer experience — without sacrificing security against legitimate fraud attempts.
Based on recent trends, online sales will likely break another record during this year's holiday season. Context-based authentication and global network intelligence can dramatically improve e-commerce security, but the caveat is that you need to consider implementing this technology now to avoid a potential catastrophe by making major security changes during the busy fourth quarter.
Reed Taussig is the president and CEO of ThreatMetrix, a provider of context-based security and advanced fraud prevention solutions.