Fraud is a massive drain on resources for many online companies. E-commerce sites, social networks and advertisers are all worried about bot fraud, ad fraud and payment fraud, as these issues continue to undermine online efforts. However, social and e-commerce sites could work together to curtail fraud by making more use of social logins and social data in general.
A report from payment processing company Worldpay explores how social could be a powerful tool for identity verification and fraud prevention. A key part of using social media data is to establish identity online. Many are already using sites like Facebook, Google+ and Linkedin as identity services.
60 percent of the 200 merchants surveyed already use social data in their review processes. However, much of this involves ad-hoc or manual processes. 52 percent said they were ready to make better use of the data but lacked the knowledge to do so. Social logins help automate the identity service somewhat, and 35 percent of respondents already use social as part of their customer login process. 56 percent also said they place greater trust in customers who use social logins. However, business should be careful not to become complacent; screening these profiles for validity during a fraud investigation would be essential.
One respondent told Worldpay that businesses aren?t using the data they collect effectively:
There is a lot more that could be used to detect a bad purchase, (Often) the information is all there, a...