Identity Behavior Analysis focuses on the good. It uses data about customers' past behaviors to confidently assess how valid customers and transactions are.
99% of your transactions are valid.1
Can I just end the post there? Think about that for a minute, though; as bad as fraud can get, on average it accounts for less than 1% of your transactions.1 And yet every fraud product on the market targets "finding fraud," "stopping bad payments," or "highlight risky transactions." I've worked in the field of fraud prevention for almost two decades and have done everything from investigations to strategy over the years. Across all areas of fraud work I've seen a strong tradition of doing things manually. We're all doing this the hardest way possible, though—working our fingers raw trying to find the needle in a massive haystack of legitimate customers.
That 'negative first' approach is great for fraud…as in the people committing fraud. Bear with me for a couple more farm analogies: the more effort you spend looking for the 1%, the freer the fraudsters are to frolic in the field of your transactions. Rather than constantly plugging holes in the fence to keep them out, Cybersource offers a novel solution that validates your prime customers for what they are: the business you want. The 99%.
Innovate with IBA
Identity Behavioral Analysis (IBA) turns the old-fashioned fraud mindset of "find the bad actors" on its head and focuses instead on the good. It uses data about customers' past behaviors to confidently assess how valid customers and transactions are.
Rather than fixate on lists, matches, and attributes like outdated fraud solutions do, IBA evaluates behaviors. The way we shop. IBA pulls from a vast amount of data that covers a wide range of global sellers, lenders, and industries to paint an accurate picture of what your real customers do in their day-to-day digital lives. This isn’t just IBA data or even just Cybersource data—it also includes the vast ocean of Visa transactions as well as several third-party providers.
All this is happening in real time, too. No delays, no holds, no reviews. Without ever knowing it's happened, every single one of your valid customers is reviewed and segmented to be treated with the respect they deserve.
Kick back and relax
All this positive behavior stuff sounds great, but how you use it matters. As a former merchant, customer experience will always be the highest priority for me, so words like "seamless," "instant," and "correct" are all critical when I think about a valid customer's journey through a fraud product.
I believe in automation, which is a nice way of saying that I think computers are better at this kind of thing than people. In my experience, manual reviewers are correct about 60% of the time, while AI is correct more like 90% of the time, and often even more than that. Seems like an easy choice, right? You can boost your accuracy and reduce your manual review rates by 25% or more (sometimes a lot more) with a quick onetime setup.2
Still, not all machine learning is created equal. Ultimately, machine learning is only as good as the people who build it and the data it uses. Identity Behavior Analysis is the real deal, though: It’s built into our premier fraud product Decision Manager and doesn’t require any upkeep thanks to its self-adapting model and steady stream of data to learn from.
The customizability of Decision Manager can also support your unique use cases. If you're inclined to tinker, the option is there. Or you can customize down to the most detailed level with additional support from Cybersource's Managed Risk Analysts. These are fraud experts with global experience that have seen all the edge cases that the machine learning hasn't seen yet.
As a longtime merchant user of Decision Manager, I constantly had to explain that it wasn't just for payments. I've used Decision Manager in retail, with intangibles, for loan validation services, and more. Merchants and partners across our customer base do the same across a variety of channels, which means that almost any kind of transaction can be passed through Decision Manager and benefit from IBA's methodical assessment.
If you do business online, you know that in a post-COVID world there are more digital fraud attacks than ever.3 That's certainly a challenge, but the pandemic also brought us many more valid consumers as well. Stop treating your real customers like they're committing fraud by introducing extra friction.
IBA draws from your historical transaction data to marry up things like device fingerprint and behavioral biometrics with new sales. It gives you the full picture of what it means to be a good customer when you use its capabilities.
Start reaping results
With Identity Behavior Analysis, you’ll quickly find your 99%. To go back to our haystack, you might realize that finding that needle isn't so important with all these armloads of hay turning into revenue. In live transactions, IBA can reduce the need for manual review significantly. IBA's intelligent segmentation automatically sorts customers into good and bad, reducing the upkeep associated with traditional fraud strategies and, more importantly, putting customer experience at the forefront. It's much easier to find a needle when it's in a bucket of needles, so you can focus on making more hay.
Start thinking more positively today with IBA. Let us know that you're interested, and we'll reach out to you quickly to discuss the best setup for your business.
1 Based on data collected from Decision Manager platform. The fraud rate for all transactions across Decision Manager is 0.5%.
2 Based on data collected from Decision Manager clients moving to actively using Decision Manager’s Identity Behavior Analysis.
3 2022 Global Fraud and Payments Survey Report, Cybersource and MRC, page 9.