Retailers up efforts to prevent fraudulent transactions, Adyen
60% of retailers in Europe saw an increase in fraud during the past year, according to a new report from Adyen.
The PayTech surveyed 5,000 shoppers and 500 retailers in the UK, Spain, France, Germany and the Nordics. More than 75% of retailers claimed they were prepared for fraud or had active prevention systems in place. The study also found that 55% of consumers would pay with cards more frequently if it helped to reduce the risk of fraud, while more than two in five would pay through an app if it did the same.
57% of retailers, meanwhile, are looking to implement fingerprint biometrics, and 56% are circling voice authentication. In addition, 31% are interested in the role that machine learning can play.
They also need to be aware of the legislative requirements to keep their customers safe and authenticate transactions. The EU’s Payment Service Directive 2 (PSD2) stipulates that transactions need to pass new stricter authentication standards, and implement 3D Secure 2.0 by 2019. More than 20% of retailers already comply with this standard, 27% are planning to adopt technology to comply in the next 12 months. 24% don’t have plans to adopt.
“As technology makes the shopping experience more engaging and convenient, it also powers the sophisticated fraudsters. Retailers need to walk a very fine line of doing everything in their power to help prevent fraudulent transactions and protect their customers, but they also don’t want to be overly cautious and decline legitimate transactions,” says Myles Dawson, UK Managing Director of Adyen.
“Payments technology is key in this regard. Machine learning and advanced data analysis plays a vital role in accurately identifying the shopper behind each transaction to reduce chargebacks and false positives.”
