How Compliance Influences User Trust
Many consumers’ behavior has changed due to the pandemic. The imposed lockdowns resulted in increased use of digital platforms to conduct day-to-day transactions and activities. Many businesses have increased their digital engagement to remain competitive in the face of the challenges brought by the pandemic.
Enterprises had to change how they delivered customer experience, including managing their supply chain and ensuring customers had a smooth transaction. These changes were met by companies that developed excellent customer relationship management systems and increased marketing campaigns on multiple platforms.
Companies must build trust and loyalty to retain customers and bring in new customers as they manage multiple challenges in a competitive market. However, it can be challenging to create certainty in these challenging times.
There are several ways that businesses can consider ensuring fraud prevention. One of the ways to ensure this is by building a more substantial customer verification. In Europe, they have the Revised Payment Service Provider Directive (PSD2), which requires payment service providers to implement a robust customer verification process.
Increased use of digital platforms has also led to increased fraud and other cyberattacks against customers and enterprises. Companies in digital transformation must address digital safety concerns that comply with industry and regulatory requirements to ensure fraud prevention. One example that addresses digital safety is Strong Customer Authentication or SCA.
Under SCA, online identity verification relies on strong customer authentication. It is based on at least two elements: possession, inherence, and knowledge. Knowledge factor is based on what the user knows, such as their PIN or password. Possession is the second factor, which refers to owning something, such as a phone or hardware token. Inherence factors are used to determine if users are similar to their biometrics. SCA’s policy is to improve customer protection and increase security measures in business markets.
Users will trust digital platforms more if they have a strong security defense, so business owners need to protect customers’ details for e-commerce fraud prevention. It can be challenging to convince people to trust your company and use your products and services.
Enterprises can empower online trust by binding strong authentication to a strong identity. Besides this, there are more ways to successfully comply with industry standards and regulations to protect customer information and earn their trust. More information about this can be found in this article by Login ID.