Callcredit Blog

How to protect margins and increase identity check pass rates in a mobile world

Fraud & Verification

If you would like to increase your connection volume, reduce no intention to pay and identity fraud plus protect your business from the consequences of fraud, take a look at our blog.  We work with a number of mobile retailers and dealers to help reduce the impact of fraud.

Balancing act

Being the intermediary between a consumer and the mobile phone network isn’t an easy job.  The processes and policies handed down to the retailer to follow can be complex and, from the end consumers’ point of view, long winded.  Whilst it’s true that customer experience is much higher on today’s agenda than perhaps it used to be, it is likely that networks will clawback commission or withhold revenue share payments in the event of having to terminate customer connections for fraudulent activity.

The impact to retailers in the event of a consolidated fraud attack, whether third party identity fraud or first party no intention to pay, can be disastrous, with already tight margins being squeezed even further by the loss of the device itself (assuming it was purchased by the dealer) being compounded by cash flow impacts of payments being with-held or clawed back.

Turning the tide

In an effort to protect themselves, and their consumers, from the risks of identity fraud and no intention to pay fraud, many retailers have now implemented measures that include;

  • Asking for identity documents such as passport and drivers licence to be emailed
  • Debit and refund a monetary value from a credit, debit, Solo or Electron card
  • Restrict delivery address to home address only.

Clearly, all of these measures are far from ideal.  Consumers have concerns about where they are sending document copies to, how these will be stored and who will have access to these.  Card refunds may take several days to show due to the banking payment systems and the lack of convenience around delivery is a further barrier.

For the retailer, this could lead to an increase in abandoned online checkouts as customers drop out of the purchase journey as well as placing an administrative and manual overhead in reviewing documents and processing refunds.

Convenience vs. Security

Electronic identity verification checks can help reduce or eliminate the manual steps and barriers that some current security methods create.  Using data that is captured as part of the journey anyway validation and verification can be used to;

  • Link identity to bank account and/or credit card
  • Triangulate details and reputation from the device being used to interact with your website with similar attributes from current mobile phone number and email address
  • Replace manual process with electronic verification
  • If needed, validate documents electronically and embed into the customer journey
  • Provide real time, instant decisions
  • Identify risk of no intention to pay.

Configurable solutions can be tailored to create a risk based approach to fraud risk management, factoring in variables from the deal such as tariff, device type, free gift incentives and geographic ‘hot-spots’ for fraud.

The result is an improved customer experience, a reduction in fraud and the associated costs plus an uplift in the volume of customers enrolled.  Furthermore this approach can help protect customers from having their identity compromised.

If you would like to discuss any of this post please email me

Author: Mel Prescott

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