Whether you have an established business or you are just starting up, one thing is sure, you always want your customers to have the best experience. One way of offering your customers the best service is by making them feel confident and secure that every transaction they do is legit and safe. You need to make sure that your platform is safe enough for them to give you their confidential information.
Aside from securing all your platforms, it is also your responsibility to verify if you are dealing with a legit customer or a fraudster. We all know that numerous cybercriminals are lurking on the internet, waiting for someone to fall into their dangerous traps in this modern age. Cyber threats are everywhere now, and nobody is safe anymore. Online businesses and organizations need to be more aware of all the threats they are facing in order to protect themselves and their customers.
Cyber criminals are constantly working on updating the threats, but luckily, cyber security tools are also getting more effective and sophisticated. One of those crucial tools is called data enrichment, and it can help you stop the fraud before it even happens.
What is Data Enrichment?
Data enrichment is also known as data augmentation or data appending and in simple terms it is a process of gathering data that helps your business and customers become protected from any online fraud attacks. This is done by taking raw data points and enriching them with similar data points from a more extensive database. By collecting all of this additional data you will be able to get a clearer picture about who your customers are, what they want and ultimately if they are legitimate users or a fraudster. Truth is, the more data you can gather, the more your business will become secure against online fraud.
Why is Data Enrichment Essential in your Business?
The main reason why data enrichment is essential to your business is because it makes it possible to protect your customers from unwanted risk. It does that by providing you with more information about your user without you having to ask them for more details and possibly upsetting them. Simply put, you can verify someone’s transaction by merely asking them for a single piece of information, such as an email address and with the help of your internal database and in addition to a third-party provider, your system can then verify if you are dealing with a real customer or a fraudster. For example, it can compare customers’ IP addresses or their email with the internal and external databases to confirm it wasn’t involved with any previous data breaches or spam blacklists. If the email address has been already reported as being involved in a data breach, you can react on time and block it from any further actions on your website and request additional verification methods to confirm the customer identity.
Did you know that 54% of consumers said they have encountered fraudulent or suspicious actions on the Internet? Do you want your business and your customers to become a part of that statistics? By using data enrichment, you can make sure this doesn’t happen to your business. Just think of data enrichment as an additional layer of protection without giving your customers some user friction and delays in their service experience.
What are the Benefits of Data Enrichment?
Adding data enrichment at the core of your business brings you many different benefits when it comes to the fight against cybercriminals. But before data enrichment started being used as a cyber security tool, online businesses and organizations were already using it in their everyday business because of all of the other benefits it brings.
Let’s take a look at some core advantages.
- Accelerate the review process – By simply using a data enrichment tool, you can minimize the time for verifying user information.
- Minimize User Friction – Instead of asking your users about the various personal information, data enrichment tools can simply pull out all necessary details. Google’s autofill setting is already using this feature to more easily fill out your details across your devices. You can secure both your users and your business without damaging your customers’ experience.
- Know your Users Better – Gathering all vital information will allow you to know more about your user, thus hindering cybercriminals from using their account details for transactions.
- Real-time Results – By investing in data enrichment tools, you can verify your customer identity in a matter of minutes, making it easier to react on time.
Businesses that Needs Using Data Enrichment
Though almost all businesses that are conducting their business online need to invest in data enrichment tools, some industries need it the most. Here are some examples.
- SaaS – Software as a Service companies are expected to invest in data enrichment since most of their transactions are done using online payment methods.
- Lending/Finance – Banks, Credit unions or Fintechs are well-known users of data enrichment tools since they need database access to check their customer’s profiles.
- Insurance – Similar to banks and other financial companies, insurance businesses are also expected to add this security layer.
- Marketing – Any marketing business that wants to stay competitive needs to start using data enrichment tools in their everyday operation. Their main goal is to gather as much information about the user as they can so they can make informed decisions. By knowing what the user wants or needs, they can even implement targeted marketing and achieve better results.
When Do You Need Data Enrichment Tools?
And as a business owner, it’s your responsibility to protect both your business and your customers. Considering the threats lurking online, it’s safe to say that implementing data enrichment tools needs to happen sooner than later.