When you survey the fraud management industry, you read quite a bit about profiles and how to use them to limit fraud losses. However, when you dig into the "how," you realize that many solutions lack a complete, detailed profile for all users that interact across digital channels.
"All users" as a concept should not only focus on those that log in but rather all journeys and interactions from anonymous to known to authenticated. If you think about the journeys you take on a digital device today, not everything you do occurs from an authenticated state. There's quite a bit of value in the interactions you take at each step in the journey. Obviously, for marketing purposes, that allows for signals to be developed based on things you may be interested in buying or looking to research that trigger offers, campaigns, or other activities. Those same signals can provide a lot of value in the fraud world too, but they must be stitched together across channels and devices to be effective.
In our previous blog we discussed the CX challenges of reducing false positives and providing real-time opportunities to detect fraud and intervene. The path to success in this realm is to build robust profiles that ultimately link together via a first-party Identity Graph across channels and devices so that you can connect the anonymous journeys to the authenticated over time based on key identifiers. With the appropriate data model linked to these profiles, you'll have the most evidence at your fingertips to make the best decision in the moment.
When it comes to creating those links between an anonymous session and other authenticated sessions, there are two main elements to consider:
- The ability to persist identifiers over time on each digital device is critical to having the best chance of recalling who that individual is the moment they arrive on a particular channel.
- The ability to capture PII in a secure, compliant, and first-party manner as individuals provide that information throughout their digital journeys.
The first point relies on having a first-party solution with the ability to identify and persist profiles in a way that is unimpacted by Apple's Intelligent Tracking Prevention (ITP), recent browser changes, and ultimately the varying degrees of privacy legislation around the globe. The second point focuses on trust and data ownership. Today's fraud management solutions are mainly third-party in nature or only receive hashed IDs to build profiles and power anomaly detection.
In our experience, PII data plays a vital role in fraud detection. We've seen upwards of 30+% of fraudulent activity better identified with the addition of PII that extends beyond simply a hashed ID. In a world where organizations continue to struggle with balancing between limiting fraud losses and lowering the number of false positives, a fraud management strategy without PII is leaving the door open to key misses in your strategy.
Read more about the Celebrus Fraud Data Platform to the value of a complete profile in combatting digital fraud: Fraud Data Platform