Experian finds Frictionless Fraud Prevention Measures a Key Driver of Successful Customer Engagement

Experian finds Frictionless Fraud Prevention Measures  a Key Driver of Successful Customer Engagement

A balanced approach between fraud management and convenience will be vital for organisations in Indonesia, with excessive security measures having a negative impact on customer engagement


JAKARTA, 16 October 2019 – Digitalisation has increasingly shifted interactions between organisations and consumers online. This has made fraud prevention measures a must for any modern organisation. However, business leaders will need to remain aware of how excessive security measures might negatively affect customer engagement. This is according to Experian, the world’s leading global information services company, from their whitepaper titled ‘Frictionless fraud prevention’.


The research determined that fraud prevention measures are generally welcomed by customers as they are perceived to create a safe and secure environment for transactions to take place. The research also found a direct link between excessive fraud prevention measures and customer churn. Globally, 42% of millennials surveyed by Experian indicated that excessive or tedious fraud checks negatively impact the customer experience and deterred them from transacting online, with the 30% of respondents aged 35 or older indicating so.


Experian’s global findings are significant for digital businesses in Indonesia, home to Southeast Asia’s biggest and fastest growing internet economy according to Google’s e-Conomy SEA 2019 report. Google’s report also identified the Indonesian internet economy as being on track to reach US$100 billion by 2025. Driven by 152 million users, the largest user base in the region, Indonesia’s internet economy is currently valued at US$40 billion in 2019 and has witnessed a CAGR of 49% from 2015 to 2019. Consulting firm Ipsos also identified millennials as a key growth driver of Indonesia’s internet economy, with the demographic making up 64% of the country’s online shoppers in 2018.


Experian’s Global Fraud and Identity Report APAC edition released earlier in May 2019 found that 40% of businesses in Indonesia had experienced an increase in online fraud-related losses in the past 12 months, and that a majority (77%) of consumers in the country valued ‘security’ as the most important element of their online experiences.


With digitalisation in Indonesia set to accelerate in line with its 2020 Go Digital Vision, a balanced approach between fraud management and convenience will be vital for organisations in Indonesia as they increasingly engage customers online.


These findings suggest that investment in frictionless fraud management solutions will be vital for long term success among Indonesia’s organisations as they continue to serve the country’s digital-first audience. Effective fraud measures should not be designed to solely protect the organisation and its customers, but also enable their customers to interact with them quickly, easily, and on their own terms through preferred channels. Businesses that overlook the preferences of the modern consumer may risk limiting their growth, with possible impact on their bottom-lines as a result of potential customer attrition.


Insights from Experian suggest that the creation of frictionless customer experiences require organisations to fully understand fraud trends, any shortfalls in the organisation’s current approach to fraud, customer expectations, and leveraging technologies to authenticate customer identities on an automated basis. To successfully build and adopt a frictionless fraud strategy, Experian recommends that organisations need to:

    1. Use Data Unavailable to Fraudsters – During the identity authentication process, organisations could use data from their own systems instead of relying on customer provided information that may also be available on public channels. Such data could include information from previous customer interactions such as the contents of their last order, or even their device information.

    3. Consider the Business Case for Compliance – Many organisations invest in data analytics with the primary purpose of fulfilling regulatory requirements. However, organisations should also consider the benefits that compliance can bring to their business. For instance, proper stewarding of data that can help organisations accurately identify and more easily authenticate their customers – the basic and most important requirement for frictionless fraud prevention.

    5. Be Proactive – Organisations can be quite conservative when it comes to adopting new technologies to authenticate, verify, or detect fraud. However, ever-evolving customer expectations and rapid technological advancement mean that efforts to contain fraud must be a constant process today.

    7. Avoid Siloed IT Systems – Siloed IT systems are unable to reconcile data from multiple sources, often creating barriers to effective fraud prevention and imposing friction for customers. To avoid such a scenario, only invest in scalable fraud solutions capable of being fully integrated with all operational areas of a business, providing the ability to swiftly adapt to the ever-evolving threat landscape.

    9. A Right Amount of Friction is Good – Some friction in the customer journey is good, desirable even. For high-value or sensitive transactions, customers want to feel reassured that their data is safe, even if that means going through some security checks. However, organisations should remember that this should not be the case for every single transaction. For instance, customers should not be required to undergo a high volume of checks just to check an account balance.

“The volume of online transactions and the ever-evolving nature of today’s digital threat landscape means that organisations can no longer safely rely on legacy fraud management systems,” said Dev Dhiman, Managing Director, Southeast Asia and Emerging Markets, Experian. “With the modern consumer demanding secure yet convenient digital experiences, business leaders need to implement an integration fraud solution capable of aggregating data from all available sources across the organisation, enabling quicker, more coherent, and informed decisioning within organisations that facilitates positive customer experiences.”


To find out more about Experian’s ‘happy path’ for organisations towards frictionless fraud management, download the ‘Frictionless fraud prevention’ whitepaper here.


Experian’s identity and fraud business comprises of nearly 300 fraud experts around the world working to protect people’s identities and fight fraud for businesses across multiple sectors, including financial services, telecommunications, retail/e commerce, insurance, government and healthcare.


To help organisations effectively safeguard their business and customers by detecting and preventing fraud attacks, Experian has launched their CrossCore™ solution for the Indonesian market. A plug-and-play platform, CrossCore deploys quickly and can be easily tailored, offering powerful fraud solutions including:

  • Multi-channel digital device fraud detection to protect and fast-track trusted customers
  • Behavourial biometrics technology that include keystroke dynamics, typing rhythm, mouse use, signature identification among others
  • Email risk scoring technology – real time email scoring that accesses the risk of the application to facilitate decisioning

Find out more about CrossCore here.



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By Experian 10/17/2019

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