Marketplaces can enhance fraud prevention, reduce customer and seller friction, and expand globally with comprehensive and layered identity verification, according to a recent Marketplace Risk webinar featuring Marc Coderre, Trulioo director of customer success, and Wale Ayantoye, Etsy director of financial crime operations.
The webinar, “How to Navigate the Evolving Fraud Landscape: Tips for Marketplaces,” highlighted the importance of agility, vigilance and flexibility in defending against emerging threats. Coderre and Ayantoye also discussed evolving fraud tactics and provided strategies for navigating them.
The Importance of Trust for Marketplaces
Marketplaces are considered among the fastest-growing and largest retail channels, according to a recent report, and could account for 60% of global sales by 2027.
But fraud is a constant threat. A study by Juniper Research found the total merchant losses to online payment fraud between 2023 and 2027 will exceed $343 billion.
Fraud chips away at trust, making buyers and sellers wary of doing business with strangers online. Will the product be delivered? Will it be the same product as advertised?
While fraud prevention steps are necessary, slow onboarding can lead to frustration and abandonment. Convenient, fast identity and business verification can help marketplaces meet customer and seller expectations and establish trust.
Provide Secure Experiences Across the Customer Life Cycle
Customer onboarding offers an opportunity to collect vital data that informs the entire customer journey. That customer information can help build customized user experiences.
It also helps prevent fraudsters from making transactions. Some of that data collection is required by regulations designed to mitigate fraud, but marketplaces also can base it on the risk profiles of customers and merchants.
The key for marketplaces is ensuring the flexibility to keep pace with changing buyer and seller behaviors and regulatory requirements.
Best Practices Evolve Into Regulations
Many regulations first appear as best practices. When marketplaces don’t implement those best practices and problems occur, regulators often step in.
If marketplaces follow best practices now, they can mitigate fraud and create secure environments for users. They also position themselves for future compliance if the need arises.
A layered approach to identity verification can give marketplaces the tools to enact those best practices by fighting fraud while meeting buyer and seller expectations for convenience and speed. They can build trust and lock in the long-lasting relationships that drive global growth.
Watch the webinar
How to Navigate the Evolving Fraud Landscape: Tips for Marketplaces
In today’s fraught fraud landscape, marketplaces face challenges that require them to be agile, vigilant and adaptable to new threats. In this session, marketplaces will gain insight into evolving fraud trends and learn how to navigate them.