Authorization and authentication of customers in e-commerce is an essential step to prevent potential fraud and make sure that your online business can prosper. There are many ways that some people try to abuse the payment system, which is why it’s important to use modern protection methods. One of the affordable ways to minimize the risk is to use software with the device fingerprinting feature. To learn more about this method, continue reading.
Why is authorization essential in e-commerce?
Online shopping has become a part of daily life for many people. Having an e-commerce business comes with its complications, as there is always a risk of fraud, chargebacks, hacks, and other illegal activities. Proper authorization and authentication of all customers using modern tools can minimize the chances of this happening.
When it comes to the definition, authentication answers the question of who a person is while authorization decides what they can do when using your online store. In real-life situations, people use various documents, certificates, and IDs to prove their identity, but the process becomes more complicated on the Internet. Online, we can use various software and programs to authenticate customers and set software rules for their authorization.
How does device fingerprinting help?
Device fingerprinting is an advanced technology that automatically gathers information on what device a customer is using. The system receives data from a certain device, such as its time, location, software, web browser, language setting, plugins, fonts, screen resolution, and much more. If you have special device fingerprinting software running in your online store, the information will be collected automatically once someone visits your website.
Why would you need this data? The answer is simple – by analyzing the device fingerprints, the software can decide whether a certain customer associated with this device is a potential fraudster. Because software analyzes an entire range of characteristics, each obtained digital fingerprint is unique. If you figure out that a person with a device linked to fraud tries to purchase in your store, you can simply block them. Unless they purchase a different phone or laptop, they won’t be able to access your store again.
As opposed to cookies, once you have information from the customers’ devices, they cannot simply delete it. In this way, this method is significantly more reliable.
What signs of fraud can be noticed?
What is more, the software is used to eliminate users that have already been involved in illegal activities and notices various fraud triggers. For instance, a person may be using different software on their device to hide their location, which can be viewed as suspicious by the system. A combination of different signs offers quite an accurate prediction on whether a potential customer can be trusted.
Several fraud triggers can be determined thanks to the device fingerprinting technology. They include but are not limited to the following:
- Anonymous sessions
- Outdated operating systems and browsers
- Any inconsistencies (language, time zone, etc.)
- Emulation devices
- Proxy servers and more
The device fingerprinting software analyzes thousands of cases of user activity every day to improve the technology and figure out other fraud triggers for future reference.
What are other ways the software helps business owners?
In addition to detecting suspicious activities and blocking users that have already been engaged in fraudulent activities, the software provides such advantages:
- It can be used to set limits on how many orders can be made using a single device
- It carefully analyzes the reputation associated with each device
- The software determines transaction linking
- Device fingerprint technology can see when someone accesses another person’s account
The purpose of device fingerprinting is to prevent potential problems and deal with situations that have already taken place. Installing such software on your site is the most affordable way to make your online store a more reliable place for you and your customers. It is used to spot various patterns and effectively prevents bot attacks, account takeovers, application fraud, payment fraud, and more. By ensuring proper authorization on your site, you can decrease any potential losses that can occur due to illegal online activities.
Ensure proper authorization on your site
Installing modern software with the device fingerprinting feature is a common practice in today’s e-commerce sphere. Too many people try to profit from illegal activities in online stores, so prevention is not to be taken lightly. Whether it’s constant chargebacks or another issue, you can use a combination of different protective methods, including special software, to reduce the risks for your business.
Have you ever dealt with fraudulent activities in your store? Have you used any prevention tools? Please, tell us what you think about this topic in the comments below.
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