Ecommerce Fraud Prevention: Balancing Customer Experience and Security.

85% of ecommerce professionals struggle to balance customer experience and fraud prevention, resulting in nearly $50 billion in lost revenue due to false declines. Merchants identify initial checkout as a key area for fraud prevention improvement. Riskified showcased AI-driven technologies to address these challenges at its Ascend 2025 event in New York City.

In the digital age, e-commerce professionals face a delicate balance between ensuring customer experience and preventing fraud. According to a recent study, 85% of e-commerce professionals struggle to achieve this balance, resulting in nearly $50 billion in lost revenue due to false declines. Identifying the initial checkout phase as a key area for improvement, companies are turning to advanced technologies to mitigate these challenges [1].

At the recent Ascend 2025 event in New York City, Riskified showcased AI-driven technologies aimed at addressing these challenges. The event highlighted the importance of proactive fraud prevention strategies that do not disrupt the user experience. One such strategy involves the integration of device intelligence, which offers real-time threat detection and enhances fraud prevention capabilities.

Sumsub, a global leader in verification, recently expanded its Fraud Prevention solution with advanced Device Intelligence, enhanced by the Fingerprint platform. This integration allows Sumsub to identify threats before they escalate, offering real-time insights into user integrity by analyzing device behavior and network-level data beyond basic IP tracking [1]. By incorporating behavioral analysis and device fingerprinting, Sumsub significantly reduces false positives while enhancing fraud detection accuracy.

The integration of Device Intelligence is particularly valuable for high-risk industries such as iGaming, crypto, fintech, banking, and e-commerce. This solution enables real-time detection of suspicious behavior post-KYC, which is crucial for safeguarding user accounts and maintaining platform integrity across global markets. Importantly, Device Intelligence does not collect any personal or sensitive information, ensuring compliance with data privacy regulations [1].

Andrew Novoselsky, CPO at Sumsub, commented on the collaboration with Fingerprint, stating, "We are combining our own technology with Fingerprint, a leader in device intelligence. Together, our solutions provide greater accuracy and a more complete fraud prevention system, with no coding required on the clients' side." This collaboration allows businesses to gain deep visibility into user behavior and stop fraud in real time, minimizing potential damages such as monetary losses, operational disruptions, and reputational risks [1].

Shaun Per, Vice President of Global Sales at Fingerprint, added, "By combining our industry-leading accuracy and reliability with Sumsub's powerful identity verification and fraud prevention solutions, we're helping businesses unlock deeper insights into user behavior with real-time signals to reduce fraud and deliver more seamless onboarding experiences" [1].

By introducing enhanced Device Intelligence into its full-cycle platform, Sumsub reinforces its commitment to providing frictionless, secure verification at every stage of the customer lifecycle. This approach not only enhances fraud prevention but also ensures a seamless user experience, addressing the primary concern of e-commerce professionals.

References:
[1] https://www.morningstar.com/news/pr-newswire/20250617hk12035/stop-identity-fraud-before-it-starts-based-on-device-signals-sumsubs-fraud-prevention-enhanced-with-device-intelligence