How to Walk the Security CX Tightrope

formotiv marketing security tightrope balance risk
behavior analyticsbehavioral intelligencemarketing

balancing risk and user experience

 “Click on all the images that show a street sign.”

Unfortunately, we’ve all been there.

You’ve already provided your demographic information, answered authentication challenges, and reluctantly admitted that your first Golden Retriever’s name was “Bruiser”.

Now you have to prove to a machine that you’re human by selecting fuzzy images that may or may not contain a street sign.

Pretty crazy for 2019 right?

For the most part, trying to prove that you’re an actual human and not a machine is just as frustrating as it was 10 years ago.

Now imagine that you’re a Customer Experience Executive, who’s been tasked to deliver best-in-class digital experiences with as little friction as possible.

Yet the first time a prospective customer shows true buying interest in your product, they’re forced to jump through arduous security challenges.

Why make it so hard?

Two words – false positives.

According to a recent TransUnion report, 63% of consumers would consider no longer doing business with a financial institution or retailer if they were declined during the application process, which makes it an imperative initiative to determine genuine customers from bad actors & fraudsters.

Let’s think about that for a minute.

With only 1 in 5 blocked transactions being fraudulent, the cost of false positives far outweighs the cost of actual fraud.

Incorrectly turning down a genuine customer accounts for immediate revenue loss, future revenue loss from cross-selling and upsell opportunities, devalued brand recognition, and acquisition spends that can be thrown right out the window.

As a business, it seems as though you only have two options: 1) deliver an application process filled with cumbersome security barriers leading to high drop-off and frustration OR 2) deliver a frictionless experience with high rates of genuine customers being turned down.

security customer experience

How to Deliver a Dynamic Experience Without Sacrificing Security

“Everything in moderation, including moderation”.

Delivering a great user experience during the application process doesn’t mean you’ll be letting fraudsters through your front door with open arms, but it does require operationalizing a multi-layered security approach that acts in real-time.

A multi-layered security approach utilizing dynamic experiences looks at each user or session in 3 fundamental ways:

    1. What device is connecting?
    2. Who is behind the screen?
    3. What is their intent?

The most recent and impactful evolution in fraud detection comes in the form of behavioral biometrics – which is the measurement of uniquely identifying human behavior patterns that focuses on how information is provided as opposed to what information is provided to determine digital identity and intent.

Why understanding “Intent” is Crucial for Dynamic Experiences

The “intent” portion of that long-winded definition is where the true break-through lies.

To understand just how important it is, let’s think back to 15 years ago.

Online banking was quickly gaining momentum with 31% of US households utilizing some form of internet banking.

But completing end-to-end transactions like opening an account online was no easy task and still years away from being fully operational.

If you wanted to apply for a loan or open a new bank account, where would you go?

Most likely, you’d walk into a retail location where a branch manager would take you through the process step-by-step, adjusting the experience (dynamic experience) as you engaged in the application process.

For example: 

If you were unfamiliar with the product you were applying for, or maybe you were frustrated and confused by the questions in the application, there was a person to educate and assist you through the finish line.

If you were highly engaged and showing interest in other products, there was a person to provide more information and help determine the best package for your needs.

If you were nervous or you didn’t know the answers to certain questions, there was a person there to further qualify your application.

See where we’re going here?

In all previous banking transactions prior to the rise of the internet, there was an underlying concept – human interaction. In a face-to-face setting, there’s a trained employee reading your body language, taking into context the nature of the transaction, and handling it accordingly.

Each prospect or customer was unique.

Each case required a different approach by the branch manager in order to convert a happy customer or further qualify a potential fraudster.

Are we applying the same level of personalization, qualification, and dynamic experience in the digital era?

The Digital Shift Created “The Faceless Digital Customer”

Today, most enterprises assume & decision solely off of final answer data.

What does that mean?

It means that how you provide your answers on an application for a loan, or an application for life insurance, doesn’t necessarily matter at all.

Some businesses even allow you to submit your application for an estimated quote, then go back and adjust your answers to get a better rate.

Now imagine if this were true in the face-to-face examples we talked about.

The branch manager wouldn’t react to any of your questions or concerns, they wouldn’t care if you didn’t know your previous address, and they wouldn’t blink an eye if you were copying various social security numbers from a printed out spreadsheet of stolen identities.

They would simply wait until you were ready to apply and process your information as if nothing were wrong.  

If that sounds insane to you…it’s because it is.

Yet most financial services institutions do this every time they process a digital application.

Having a static experience instead of a dynamic experience is not the way to do business anymore. 

Dynamic Experience: Measure Behavior, Predict Intent

If you’re truly a “data-driven” organization, you need to leverage all of the pieces of the puzzle to create best-in-class dynamic experiences that cater to an individual’s unique behavioral characteristics.  

At Formotiv, we’ve developed a solution that does just that.

As users engage with an application, Formotiv passively collects and analyzes the user’s unique behavioral signals to understand their purchasing intent.

In an effort to model the face-to-face interaction in the form of digital dynamic experience, Formotiv’s Digital Polygraph measures unique parameters like typing speed, mouse movements, corrections, and advanced keyboard shortcuts, to determine the best path forward for a single user.

If a user shows behavioral signs of fraud, introduce a dynamic experience like a driver’s license upload to further qualify the individual.

If the user is showing behavioral signs of abandonment or confusion, introduce contextual help or a direct chat-line to a customer advocate.

In a time when it is crucial to understand who your true customers are and deliver the dynamic experiences that they have come to expect, it only makes sense to employ a multi-layered security approach that understands how our unique human behaviors predict our intentions.


Want to learn more? Email us at info@formotiv.com

formotiv digital body language
What the SAT’s taught us about Digital Body Language and Fraud…
A.I. Disruption formotiv meme
Top 6 Use Cases of Predictive Analytics in Insurance

Is Behavioral Intelligence right for you?

Take our QUIZ to find out!