There are firewalls and secure socket layers to install, AVS settings to choose from, and PCI standards to uphold. After all that, there are still security codes for customers and security training for employees. All of these activities are executed in the name of preventing cyber criminals from breaching the system and committing e-commerce fraud — be it against an individual or a business. A new industry has emerged full of companies with their eyes on the prize: a fraud-free online world enabled by a new field called biometrics.
Biometrics are actions taken by users and measured by fraud companies to effectively assign a unique set of attributes to individual users. They include keystrokes, hand movements, reactions to occurrences like a misplaced or randomly moved cursor, or one of many other types of tests. The idea is that with enough of these markers, each online individual will have his or her own digital fingerprint — meaning imposters will be detected and prevented from making unauthorized purchases automatically. Think of it like a retina scan for e-commerce activity.
Companies such as BioCatch, founded in 2011 by Benny Rosenbaum and Avi Turgeman, are in the race to ceate infallible biometrics. “The e-commerce solution developed out of a necessity for effective fraud protection, while minimizing obstacles for customers visiting e-commerce sites,” stated Rosenbaum. “The platform is a natural progression of our continued successes protecting banks and online spaces. We are effectively addressing the two greatest problems facing e-commerce today: user experience and fraud.”
Less Fraud: It’s cyber security meets behavioral profiling. There are over 400 bio-cognitive, behavioral, and physiological constraints the software collects and analyzes—how a user holds his smartphone or tablet, how a user browses and clicks through a site, and how a user reacts to sudden change. The key to behavioral profiling is that the user doesn’t notice — there is no disruption of the online experience.
Less Friction: Imagine being a customer and not have to enter in a CAPTCHA code at the end of a lengthy purchasing process. Now imagine a company who has access to boatloads of big data to improve sales conversion rates. Biometrics companies aim to provide both.As of right now, nearly all leading blue chip financial institutions in the US and Europe are in the process of testing one form or another of biometrics.
For more information on how you can prevent fraud, access 2Checkout’s free e-book, The Guide to E-Commerce Fraud.