James Bruni, Managing Director, GBG IDology, an industry leader in identity verification, AML/KYC compliance & fraud protection solutions.
Today’s leading brands and those still trying to break through have one thing in common: They know that customer experience (CX) is the metric that will determine whether their company succeeds or fails. According to Forrester’s research, customer-obsessed brands grow revenue 41% faster than their competitors and achieve profitability 49% faster.
Unfortunately, too many companies are failing to provide a compelling CX. Forrester notes, “CX quality among brands in the US sits at an all-time low after declining for an unprecedented third year in a row.”
When customers engage brands online, they are looking for a platform that’s intuitive and easy to use, provides fast loading times and offers personalized experiences. They also want to know that their personally identifiable information (PII) and financial information is safe and secure. That’s the most basic—and most important—feature.
After all, nothing erodes a compelling online shopping experience like having your identity or payment information stolen in the process. As a result, 83% of CX leaders say cybersecurity and data protection are top priorities.
It’s a delicate balance. On the one hand, if data security strategies are too lax, customers will have a streamlined experience that could compromise sensitive information. On the other hand, if brands impose overly complicated security strategies, it could erode CX.
As we head into 2025, brands have the opportunity to positively impact their bottom line by taking a three-pronged approach to creating a streamlined, safe and enjoyable shopping experience. Here’s how to achieve seamless security and unforgettable customer experiences in 2025.
1. Make customer onboarding quick, convenient and secure.
With CX playing an important role in a brand’s success, many feel pressure to prioritize CX over security. Specifically, our latest global fraud report found that 57% of businesses believe an easy onboarding process is essential to customers. For their part, consumers prioritize data security over convenience. Sixty-eight percent of consumers place a higher value on a secure onboarding experience. Companies have good intentions when they streamline their digital processes. Still, rising fraud trends and emerging tactics require them to emphasize security more.
Brands can balance these priorities by developing and implementing a non-intrusive, multilayered approach to fraud detection, establishing custom escalation paths for suspect identities while reducing friction for real customers.
2. Account for generative AI and machine learning.
Generative AI, the suddenly ubiquitous technology that can quickly produce human-like text, realistic images and even deepfake videos at scale, also poses a significant fraud risk. Generative AI poses a threat to businesses as it allows fraudsters to easily fabricate realistic and hard-to-detect fake identities and documentation that can be used to carry out fraudulent activities. Specifically, the technology allows threat actors to evolve and elevate familiar types of fraud, including synthetic identity fraud (SIF) and phishing attacks.
According to one report, since Q4 2022, when OpenAI’s popular generative AI chatbot ChatGPT was first made publicly available, malicious phishing messages have increased by 1,265%, and researchers see a 967% rise in credential phishing. Our own fraud research found that generative AI is the biggest trend in identity verification over the next three to five years.
Of course, GenAI can also be used to enhance fraud detection and deterrence, requiring businesses looking to stay ahead of the latest threats and preserve CX to account for these technologies as both an offensive and defensive fraud prevention strategy.
3. Track omnichannel fraud.
Omnichannel experiences are essential for cultivating satisfied customers. However, they can also be an opportunity for threat actors to compromise customers’ data integrity. Mobile and online channels are the top targets, but contact centers and in-person channels can’t be ignored.
In other words, brands will need to maintain an omnichannel view of fraud to ensure security, protect data integrity and maximize CX. The best deterrent to mitigate omnichannel fraud is to ensure a holistic, multilayered approach to identity verification at every channel stage.
If fraudsters are going to transcend channel boundaries, security and CX efforts need to be integrated across all platforms.
Secure, Seamless And Customer-Friendly
Customer experience is a top priority because it is essential for staying competitive. To achieve a compelling customer experience, it must be provided securely and in a streamlined manner.
To achieve this, implement non-intrusive, multilayered methodologies that help detect fraud while accounting for emerging technologies. Additionally, adopt an omnichannel approach to security. This will create a cohesive customer journey that prioritizes CX without compromise.
Start by conducting a comprehensive risk assessment to identify potential vulnerabilities across all customer touchpoints. Combine these insights with adaptive authentication techniques that leverage AI and ML to assess risk in real time. When coupled with on-device authentication techniques, like fingerprint or facial authentication, it creates a security ecosystem that protects companies and their customers.
At the same time, don’t spread your resources too thin. Start with the channels and customer touchpoints that matter most and expand your capacity from there. Winning brands that effectively integrate secure practices will drive the one determining factor that matters most: giving customers what they want in the way they want it.
CX is the metric that dictates a brand’s success, but it sits alongside competing priorities to provide secure, seamless and customer-friendly experiences that protect both the customer and the brand. Effective CX strategies that stay ahead of security threats and give the customer an experience they are motivated to repeat will drive profitability and the business’s future performance.
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