Best Practices to Utilize Your Customer’s Fraud/Risk Profiles to Reduce Losses, Increase Revenues and Personalize Your Customer Experience

The pandemic has led to a significant increase in online banking and e-commerce activities, attracting fraudsters who prey on businesses and consumers alike. Fraud costs can extend beyond financial loss, impacting reputation and relationships with credit card companies. However, understanding customer fraud risk profiles can help businesses personalize their offerings, improve customer satisfaction, reduce churn, and grow market share. Advanced AI/ML-based systems are being used to detect fraud more accurately, with some companies moving towards neural network and deep learning solutions for better results. Explainable AI is also gaining importance as it helps understand how the system works, improves tweaks, and ensures compliance with data privacy regulations. Utilizing sophisticated fraud analytics on a modern technology platform can help businesses thwart fraudsters while improving customer understanding, service personalization, revenue growth, and standing out from competitors.