A "by the book"definition of data enrichment would be the following: ''Data enrichment is the process of broadening and enhancing a set of collected data with appropriate context from additional sources relevant to the initial data set.'' Sounds pretty straightforward, but how do you exactly enrich the initial dataset?
There are countless ways to enhance existing data, and you can get fairly creative with your enrichment. However, when it comes to fraud prevention, common tools are the following:
Along with mentioned enrichment methods, there is more room for growth. The full potential of data enrichment lies in the mobile industry.
Nowadays, businesses are living the mobile-first economy trend. The most noticeable switch regarding mobile lies in banking and mCommerce, accessibility and convenience being the main motivator for end-users to switch to mobile. To back this up, techjury brings us some jaw-dropping mCommerce statistics.
This switch brings both threats and opportunities. Threats lie in a new payment channel allowing more ground for fraudsters to operate on. This opens doors for new types of fraud in the mobile payments ecosystem. On a more positive note, mobile enables a fresh perspective on user data and allows for quality data enrichment.
Common data extracted from mobile devices include the device brand, operating system, installed version of the OS. But why stop there? With mobile, you can go as far as behavioral factors, i.e., how the user interacts with the device itself. What kind of a keyboard is the user using? Custom or regular? Is the user connected to their usual Wi-Fi? Are there any unfamiliar Bluetooth devices connected to the smartphone? What about typing speed? The angle at which the user is holding the phone?
These are just a few examples of what information you are able to collect if you take a look at available data for mobile. This information provides so much more context and serves as one of the pillars for online payments fraud prevention and detection.
Apart from the obvious benefit consisting of more accurate data that provides a more precise risk assessment, there are more that follow.
By enriching user data, you are contributing to the security of the whole online payments ecosystem. Appointing new properties and tuning the risk parameters accordingly significantly reduces fraud and provides a whole new set of insights for future fraud prevention and detection development.
A huge part of online payments is the user experience. The end-user wants their online transactions to run smoothly and securely. Added pop-up forms and redirects create unnecessary friction that can easily be avoided by running user checks in the background.
Added friction in the form of clumsy browser redirects and confusing authentication flows often end up in abandoning the purchase as a whole. By implementing data enrichment, you enable frictionless checkout, thus reducing cart abandonment rates.
Trides2 is an online payments security portfolio consisting of issuer, acquirer, and merchant solutions to fit their particular need. When discussing data enrichment and online payment security in mCommerce, 3DS Mobile SDK is the star of the show. By implementing 3DS SDK into merchant applications, you are enabling additional data collection resulting in data enrichment, more secure payments, and frictionless transactions for end users. For more information about 3DS SDK, go to our recent blog post: 3D Secure 2 Mobile SDK: In-app purchasing never looked so good.