Fraud Detection Using The Marketing Playbook

Marketing observes its customers and tailors their strategy based on the data.

Marketing delivers its best work when it doesn’t just have a great product to sell but when it knows just who to sell it to. To do that takes research, a lot of it, and then putting that information to work. The more information you have about a situation, the better the decision you’ll make – a truth not unique to marketing but not put into practice as often as it could.

This intelligence gathering lets marketing agencies understand their customer and segment them into like-minded groups. It means they can target their efforts intelligently and gain greater rewards than a single strategy applied thoughtlessly across all groups. Research informs their messaging, their positioning, even their storefronts and shopping experience. Why? It delivers results. Retailers understand the value of intelligence gathering when it comes to marketing.

Marketing intelligence can even predict the upcoming needs and desires of a customer before the customer is even aware of them, such as how Target was able to predict customer pregnancies.

More data means being able to make better decisions.

For large purchases, customers usually research them in depth. They want to be able to make a confident, informed decision. Fraudsters, too, put in the time to research because they’ve had to – blanket, brute force attacks no longer work. If they want their scam or hack to work, they have to do the legwork by looking for weaknesses and exploits and then targeting their approach. They want a safe bet.

Why should fraud detection be any different?

Let’s step back to marketing. Marketers watch consumers long before a single purchase is made. What started out as collecting basic demographics – gender, age, income – has quickly diversified and is now being used to create smaller segments. Each segment is treated differently to reflect their different interests, needs and pain points. And if a marketer knows that a certain target isn’t interested in their product, they aren’t going to waste marketing dollars trying to cater to them.

Intelligence gathering can work for fraud prevention as precisely as it can for marketing. Gathering data before the purchase – from the moment a user enters the website – then comparing it against prior behavior, as well as comparing it against behavior across groups, builds detailed yet anonymous profiles. Once we know how the user behaves, we know how to treat them.

Is this the good user that comes to our site regularly, or even a new user that is behaving like a good user? With behavioral analytics, you can tailor their experience. Create a streamlined browser experience for the returning user, and offer fewer checks for the new user. And if the user is behaving in ways that correlate to bad behavior? That same precise, predictive ability can be applied to deciding ahead of time whether a newly minted account is for a real person or for a foot soldier waiting for orders in a future attack. Data collection doesn’t end there, either: bad users can be sandboxed to collect more data or blocked outright. That information feeds back into the system, self-learning and improving with every interaction.

Increase customer satisfaction by reducing customer friction, eliminate false-positives and false-negatives, and safeguard your site and your customers from harm with the power of user behavior analytics. Read how companies like yours are using User Behavior Analytics to streamline and strengthen the user experience.