Only a couple of years ago, many people were wary of buying products online, preferring face to face transactions. But times have changed in a big way. Last year alone, e-commerce has amassed 1.248 trillion in sales globally. This is slated to increase 100% by 2017 to 2.345 trillion! Companies such as Amazon, Rakuten, Alibaba, and ASOS are growing at an astounding rate, taking care of everything from your groceries to your textbooks.
But with great power comes great responsibility. Experts forecast that e-commerce fraud is set to rise by 18% come 2015. This is a huge issue as most merchants can expect to pay $3.10 for every fraudulent dollar that passes through their system. For example, a fraudster purchases a product for $20. The merchant not only loses the item worth $20 but ends up paying an addition $42 fixing the problem and dealing with payment partners.
So what are e-commerce merchants doing about it? At the moment, the top five solutions are card verification, address verification, transaction/customer profile databases, rules based filters, and automated transaction scoring. These are a great start, but when the top solution, card verification, is only recognized as effective 35% of the time (LexisNexis’ True Cost of Fraud study), there is a definitely room for improvement.
One solution is to include social login as an added security measure for e-commerce sites. Nearly everyone who shops online has at least one social media account, whether it be Facebook, Twitter, VK, Line, or Google. Social login is estimated to become adopted by 50% of all e-commerce businesses by 2015 with Facebook leading the way with logins on 15 million sites already.
Besides making it easy for customers to register for an account on your e-commerce website, social media networks also have access to huge amounts of your user’s data and information on their behaviour. This data can also be seen as more authentic because while 88% of users may falsify information while using traditional registration methods, using social login increases the likelihood of data accuracy. Trulioo’s social login verification solution TruDetect takes advantage of this more authentic pool of data.
TruDetect runs in the background of the social registration process and uses a proprietary algorithm to analyze the social profile and provide a score based on the users authenticity. This authenticity score enables businesses to determine whether a person’s account is authentic, machine generated, or fraudulent in real-time. Using this layer of verification means that e-commerce sites will now be able to minimize the creation of multiple accounts and prevent common fraudulent activity such as; e-commerce fraud, misuse of coupons or discount codes, fake user reviews, comment trolling and spamming. As an added benefit, businesses also have access to global user blacklists within Trulioo’s network to ultimately keep fraudsters out.
Not convinced? Test out TruDetect today and receive 2,500 free scores with the TruDetect API.