Ever since the conventional business models were replaced with shiny new technologies and service delivery models, it has become easier for businesses to strengthen their revenue streams.More customers can be acquired with targeted ads and demographic-specific services and products can be successfully launched as compared to older days when companies were satisfied with a static product portfolio that provided little value for end-customers. On one hand, digital businesses are achieving unprecedented growth because of digital channels such as social media and smartphone apps but on the other hand, competition is also becoming stiff in almost every business category with profit margins thinning as well.So here are a few tips for businesses that are solely operating on the cyberspace or that are using various internet platforms to increase their market share
Online Fraud Prevention
It is safe to say that online frauds are the biggest threat to digital revenues being generated at the moment. Whether it is online identity theft or digital payment frauds, scammers and fraudsters are becoming smarter in their approach and sophisticated in their tactics which makes it every so difficult for businesses to deter online frauds without creating significant friction in user-experience.
Online stores want to reduce cash back requests for use of fake financial information but they do not want to make the check out process too complicated for their authentic buyers. Social media platforms also want to give chance to users with actual identities and reduce account takeover complaints but they also do not want to over-complicate user registration process or lack proper checks to verify the identity of incoming users at every login attempt.But using a strong and swiftly processing fraud prevention tool can come in handy for such kind of digital businesses. Several third-party service providers offer several products that are tailored to tackle digital fraud originating in specific industries.
For every business, it is important to comply with official guidelines issued by their particular regulator. Things become even more tricky when monetary funds of end-users are involved as the threat of fraud not only increases but the importance of consumer rights also enter the play. In order to ensure that business practices of a company are devoid of any foul play and every consumer is authentic, regulators are pushing businesses to perform proper identity verification of their buyers also know as KYC. The simplest way to achieve KYC compliance is by integrating a third party service provider that not only understands the importance of identity-based fraud but also has a necessary toolkit to accurately identify an incoming user without having creating any nuisance for new and existing customers alike. With solutions like Shufti Pro and Verifi, it has become easier to not only verify the identity of users and also not get penalized for vetting the identity of users.
The biggest threat to an online business’s reputation is the bad press that can be generated because of lax security measures adopted to handle and store user data. With regulations like GDPR, it has become mandatory for digital businesses to start taking user data and privacy of that data seriously. Multi-million dollars can be slapped if any business is found to not adopt concrete measures to safeguard their client data.
The notion behind higher scrutiny for data security originates from the fact that data stolen during data breaches lands on dark web, where anyone can pay a minimal amount for identity credentials of a genuine user.
All the measures suggested above are appropriate to generate not only substantial revenue for online businesses but it also helps them secure their profits from online scams and regulatory fines. Identity fraud and payment scams can be substantially reduced with these measures and regulatory compliances can also be adhered to as well in order to secure your business interest. Not to forget that the overall impact of these measures will help establish an online marketplace which is responsible and safe for consumers. Establishing trust among the users and merchants is key to replicating the same level of success that was once the hallmark of conventional service delivery models.