As more consumers place orders online, the instances of fraud increase exponentially. Hackers, bots, and cybercriminals are making it harder and harder for companies to protect consumers from fraud. Rates of identity theft continue to increase over time. In an effort to mitigate online fraud, identity resolution is being used to authenticate the buyer’s identity. For many years, retailers have overlooked the importance of identity markers and how it affects the buyer’s safety. Here is how identity resolution works to prevent fraud and keep you safe while shopping online.
Identity resolution works by reconciling data points and offering a 360-degree view of the buyer’s behavior. An identity graph is used to identify information and cross-reference it with other information like email addresses, telephone numbers, and even website visits. The artificial intelligence used will make the best guess matches to positively identify the buyer. All of the information is compiled into a profile. Regardless of platform, the identifiers are connected in real based time to enable accurate targeting. By using these data points, sites and banks work to make sure that when something is purchased online, especially something valuable or expensive, that it’s actually you doing the buying.
Along with the identity graph, data onboarding and activation are useful tools and technical components of identity resolution. The technical process of onboarding allows consumer data to be uploaded offline into an online environment. Activation synchronizes the customer’s signature profile to activation channels that identify the customer. At the end of the day, it’s all about building strong customer relationships. Online retailers must know their customers. Consumers want to know that their information is being protected. Any breaches could mean losing a customer for life while also putting that customer in a difficult situation with their personal and financial security.
While identity resolution plays a valuable role in preventing fraud, certain data laws threaten the use of the identity graph. Some states are attempting to pass legislation to provide better protection for online shoppers and consumers. In the meantime, identity resolution is working to ensure online transactions are valid. The demand for verification is at an all-time high. With literally millions of consumers making transactions on hundreds of thousands of websites daily, it is imperative that a seamless system is in place to protect online shoppers. The more data collected through identity resolution, the better chance online retailers have to protect their consumers.