Today, instant gratification rules all. Including customer experience, where things like in-store pickup and digital downloads have become a must have for merchants.

This is perfect for consumers. It’s also perfect for fraudsters — because items aren’t shipped to a recorded address, the transactions bypass a critical risk control for merchants.

The new reality is that customer experience is paramount. And it’s very unlikely we will ever go back. People want things, and they want them now. If you can’t provide that experience, they will shop with a merchant who can.

Aside from purchases that involve a house or an airplane, most people don’t want to jump through hoops to verify identity.

So, the big question is: How can you provide optimal customer experience and manage risk, without adding friction? Here are a few things to take into consideration.

Consider real-time analysis

In today’s marketplace, results matter in real time. Fraud detection and identity validation should come first. But many fraud prevention tools analyze batch transaction data after order placement.

Real time analysis helps merchants identify low-risk customers and approve them faster. It also detects and prevents fraud before it happens.

Pro tip: The best way to boost revenue and reduce friction is to use automated processes to flag risky transactions. Manual review then becomes a last line of defense against a lower volume of high- or very-high risk transactions.

By leveraging automatic transaction segmentation, only high-risk transactions need review. This works even if you have very low fraud levels. How? By approving transactions that previous controls would’ve blocked.

Get beyond transaction data

It’s important to build a clear picture of who is behind a transaction. Verifying only standard transaction data, such as name or address, opens a lot of gaps. There’s no way to tell if the person behind them is actually a fraudster using stolen information.

The email address is perfect here. It’s already collected during every transaction. There’s a also lot of history with an email address that is hard to fake. This includes if the email account is active and valid, tenure, ownership and previous transaction behavior.

Using this process up-front empowers fraud managers with intelligence for accurate evaluation. Plus, it can scale to meet increased demand.

Fight network-to-network

To fight emerging threats, we must look beyond the transactional level. Instead, focus should be on detecting fraud trends. Using networked data is one way to do so.

Networked data offers visibility into how fraudsters are trying to overcome fraud controls. It also establishes a critical feedback loop. Fraudsters have no regard for industry or region. The only way to stop them is with the power of a combined network.

When companies unite, it’s much easier to determine new frauds tactics and ways to stop them.

Meet demand, consider scale

As eCommerce demand continues to grow, fraud technologies must scale. There are several methods to verify identity, many of them very good. But if your company operates globally, there can be limitations.

Unlike a physical address, driver’s license or even phone number, the email address works globally.

Relying on region or country-specific data sources also make global operations difficult. Other methods don’t offer the same ease of scale as using the email address, which has the same format globally.

In conclusion: Create a frictionless buying experience

Fraud controls that frustrate customers and cause abandonment costs more revenue than fraudsters. In 2015, false positives cost retailers a staggering $118 billion. Actual fraud cost was only $9 billion.

Fraud controls should be invisible to the consumer. Each extra step to confirm identity represents friction to your customers. The last thing anyone wants is a hassle.

You invest a lot of money bringing in new customers. Don’t deny their transactions along with the fraudster. Maximize your investment with a frictionless experience and quick approval.

Email risk assessment helps streamline approvals without adding friction. Click here to discover more.