What is Ethoca Friendly Fraud Prevention
Companies are always looking for ways to grow their customer base and improve their operational efficiency. Ethoca is a platform that provides effective fraud prevention solutions to businesses by using artificial intelligence.
Ethoca friendly fraud prevention AI approach is designed to be friendly with consumers because it identifies fraudulent behavior patterns from individual consumers rather than blocking an entire geographical region or ethnic group from accessing the services of the business.
What is Ethoca Friendly Fraud Prevention?
Fraud prevention is an integral part of any bank’s strategy to protect its customers. Ethoca made two modifications to their fraud detection AI technology to provide an effective solution to the problem of fraud. The company used machine learning to detect fraudulent behavior patterns among individual consumers and used the data captured by Ethoca to further train their AI system to work for any business.
Ethoca’s AI system matches the behavior of an individual against patterns seen in multiple consumers and can instantly alert the customer service representative by text or call, to step in when the suspected fraudulent activity occurs. Ethoca Friendly Fraud Prevention uses the same FFP technology as Ethoca’s Fraud Detection solution and together the two solutions enhance bank customer experience.
Why do we need it?
At the heart of ethical fraud is using deception and deception is difficult to spot, particularly in forms such as fake data entry. To combat this, the industry has relied on trusted, targeted marketing campaigns, often targeted at specific groups of consumers or locations, to influence their buying behaviors. However, there is an element of truth and lies in all of these marketing efforts.
Ethoca’s approach uses AI to identify these lies and then allows businesses to reward those consumers who have shown trust in the business with better deals, offers, and other discounts. Businesses will benefit from making more targeted offers and growing their customer base.
How does Ethoca work?
Using a plug-in to any payment gateway, Ethoca can analyze the risk of a transaction and establish customer fraud risk. The plug-in checks for these fraud patterns using a technology called neural networks, using different data from different aspects of a transaction, such as purchase data, customer demographics, and transaction data. Ethoca then generates risk ratings for all transactions.
This risk rating assists companies in identifying fraud while continuing to allow legitimate transactions to be processed. Companies using Ethoca can save up to 70% of fraud costs by providing a more customer-friendly customer acquisition strategy.
Many people still think that all traditional phone and banking solutions are the same, when they are, in fact, very different. The technology and concepts behind the current banks’ systems are more advanced than they used to be, but some banks are still struggling to find the right mix of voice, e-mail, text, and social media to provide a more personal, relevant customer experience.
The key to a more personal, relevant customer experience is through trusted and customized relationships, which means in a bank that utilizes a multichannel approach with excellent communication.