Eliminating Paper Cuts: How ‘Minor’ Friction Creates Major Pain in Customer Account Security

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Paper Cut 2: Missing Fraud-Related Notifications

Even well-intended actions can create a paper cut experience. Take fraud prevention, for instance. Fraud instances are rising overall, including an increasing rate of account takeover fraud reported by merchants , according to a global survey by VISA. So not only do banks and merchants benefit from robust fraud prevention systems, but customers also appreciate the protection banks can offer by detecting off-pattern purchases and their freezing accounts to prevent fraudulent purchases. Banks are using increasingly precise detection methods (particularly with machine learning and AI) to discern illegitimate transactions. But when they aren’t using an adequate system to notify customers, it creates a paper cut. They can flag a transaction and freeze an account, but if banks aren’t alerting customers quickly enough, or in a digital channel they use regularly, customers could experience declined payments at inconvenient (even embarrassing) times.

Paper Cut 3: Delayed Authentication Notifications

Multifactor authentication (MFA) is the new standard of account security. Nine out of ten consumers have an account that requires MFA, and 66% of consumers say they trust a company more if it requires them to use MFA. Customers appreciate the extra layer of defense for their accounts—until it becomes a barrier for them.

How often have you requested an MFA code to be sent to your email, but it takes so long to arrive that the code times out? Or worse, the code never arrives because it was sent to the wrong channel or device. Consumers in that situation often abandon what they were trying to do in the first place, like make an important account update. If it’s to log into their account to make a purchase, that means lost revenue. So you can see the importance of having a robust system for authentication notifications—one that sends the messages instantaneously and to the channels where customers are sure to receive them.

Create Painless Account Security Interactions

Preventing paper cuts in common account security experiences is essential for keeping customers responsive in critical moments and keeping them using your services, all while you keep them protected. You can see how small inconveniences in these interactions have big implications for your overall CX. But just like how the “minor” pain points add up to churn customers, the flip-side is also true: Quick wins accumulate to major growth in customer loyalty and revenue.

What does it take to turn paper cut events into easy interactions that strengthen your customers’ trust in your brand? Personalized, secure MFA and real-time fraud alerts with resolution options to specific customers through any channel.

Fraud alert resolution: Immediately notify customers of potentially unusual actions on their accounts. These alerts empower customers to instantly confirm or deny that a transaction was legitimate. By providing these instant notifications, the system gives customers the ability to stop suspicious activity in its tracks. Or, in the case of a legitimate transaction, let your customers quickly move on with their day.

Identity verification: Send instant MFA notifications, like push alerts or SMS codes, directly to your customer’s device. This allows them to quickly confirm or deny login attempts or enter a one-time passcode, adding a real-time layer of security beyond just a password.