Read the Outseer Fraud & Payments Report for Q2, 2021

Defeating Digital Transaction Fraud & Friction

Defeating Digital Transaction Fraud & Friction Has Never Felt So Good

Let me know if this hits home. A Black Swan event stuffs a decade’s worth of digital transformation into 12 months and ignites a $1 trillion increase in digital commerce. But just as much is lost to record fraud during the same time. Do you hope for the best and throttle up revenue? Or take steps to secure your transactions? We say do both.

Welcome to the age of Outseer. Through identity science and predictive analytics, we deliver the foresight you need to stop fraudulent transactions before they happen. And we do it without adding even a split-second of friction for legitimate cardholders and customers.

The upside is all kinds of awesome: Less fraud loss, more transaction approvals, fewer chargebacks, more happy customers. It’s a win-win for everyone but the cybercriminals.

For me personally, there’s another big plus. It’s not every day you get to launch a game-changing new brand that has a 20 year track record of success. With its origins as the Fraud & Risk Intelligence Unit at RSA, Outseer is building on the legacy of an iconic cybersecurity brand. With the digital economy at a critical inflection point, we also couldn’t be doing that at a better time—or for better reasons.

Fraudsters Always Follow the Money

Thanks to COVID-19 related lockdowns and shelter-in-place mandates, consumers have become quite comfortable with purchasing everything from groceries to insurance policies through the web, mobile, IoT, ATMs, IVR and a growing number of other challenges. After topping US$4 trillion in 2020, digital commerce is expected to grow another 50% by 2024, according to Obelo.

But there’s the thing. The same dynamics underlying this seismic shift to digital channels is driving whole new commerce models. Whether it’s voice commerce, scan-and-go payments, or Starbucks offering finance products with your Venti Mocha, transformative new payment models are cropping up every day For banks, credit card issuers, and payment processes, innovation is, innovation is the name of the game.

The bad news: Consumer expectations for safe, seamless transactions through any device or channel they choose has hit the stratosphere. Even worse: That’s the least of your challenges ahead.

With volumes of compromised card and personal data, account login credentials, phishing kits, ransomware and more available for sale or barter on the dark web, they’ll also contend with cybercriminals angling for a slice of a rapidly-growing pie.

Nilsen projected $30.93 billion (or almost $31 billion) in gross fraud losses, with card-not-present (CNP) fraud, including purchases made via mobile devices, associated with ~65% of the fraud losses in 2020. With plenty of saved payment details and loyalty points stored in accounts and apps, account takeover topped US$6 billion last year. The financial and reputational damage done through brand impersonation scams and social engineering is incalculable.

Stopping Criminals, Not Customers

For the team at Outseer, this kind of criminality simply won’t stand. By spinning out on our own, we’re able to laser focus on liberating the world from payments and account fraud. The fact that these same crimes are used as pretext for more sinister drug and human trafficking only motivates us more.

We believe superior transaction experiences shouldn’t come with painful compromise. Or any compromise at all. By harnessing identity science and data from 20 billion annual transactions from a global consortium of 6,000 companies spanning every industry and geography, we’re uniquely able to pinpoint fraudsters and kick their transaction attempts to the curb.

With this approach, we achieve fraud detection rates as high as 95%, and intervention rates as low as 5% or less. Which means banks and card issuers can let the vast majority of transactions sail through uninterrupted, reserving step-up challenges for the very few transactions that warrant closer scrutiny. No other provider comes close.

Outseeing is Believing

To learn more, be sure to watch the explainer in this post. As we continue to introduce Outseer to the world, you can count on plenty of thought leadership, continuous innovation, and the customer successes to show for it

It’s why we call our brand Outseer—our ability to look ahead and predict what’s coming next in a way that surpasses all the rest. By seeing what others can’t, our ability to enable superior transaction experiences will benefit our customers and the entire digital economy like never before possible.

Best of all: The fraudsters will never know what hit them.

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To learn more: Read our official launch release, and talk to a sales rep about how we can help you today

By Armen Najarian