Strong Fraud Protection Is Good for Marketing

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Strong Fraud Protection Is Good for Marketing

Deploying layered fraud protection is a must for financial institutions in order to protect customers, meet compliance regulations, and reduce fraud losses. It is good for the customer, good for business, and makes life a bit easier for fraud managers and executive management. Sometimes lost in the decision making process, however, is that strong fraud protection is good for marketing. Obviously, a breach headline is one that lingers long after a fraud event, so strong fraud protection can save marketers the headache of developing strategies to shift customer perceptions in the aftermath of an incident. But for now let’s ignore that aspect of fraud and marketing, and focus on more positive ways that fraud protection can influence marketing strategy. Last year in a study by Cognizant and Monitise, 71% of respondents indicated that security features were “highly important” when choosing or switching banks. This represents a significant opportunity for marketers that can effectively communicate their fraud strategy in clear and simple terms. The fact is, most customers will tune out common industry terminology such as two-factor authentication, so it is important to convey these concepts without dipping into the standard jargon. While I might not care about real-time two-factor validation for risky transactions, I would like an instant notification sent to my smartphone if my bank notices a suspicious transaction. While you or I may realize that those are more or less the same thing, creating a strong, clear message is the key to winning new customers with messages about extra security. “Hey you have a smartphone – would you like to have the ability to get instant notifications when we think someone is sneaking into your account? That’s included in our app.” Some companies are even taking this a step further by clearly demonstrating these concepts in commercials and internet advertising. American Express has done this brilliantly, with two YouTube videos highlighting their real-time fraud alerts that have been viewed collectively over 8 million times! Discover Card also has commercials highlighting their frog…err, I mean fraud protection. Marketing 2 Many banks also use social media to talk about their fraud protection efforts and educate customers about new fraud. For example, last month Bank of the West posted a blog entailed, “6 tips to protect against new cyber threat: masquerading.” Smaller banks and credit unions are also capitalizing on the trend, many tweeting tips ranging from how to protect your identity to guarding against mobile fraud. At Easy Solutions, we have seen our clients use this approach in traditional print advertising, separating themselves from the competition by offering more secure transactions. It is a valid approach, and one that customers are increasingly embracing. Just this past July, American Banker published an article entitled “Consumers Get More Comfortable with Fraud-Protection Efforts,” in which they report that consumers are willing to accept a certain level of inconvenience in their banks' efforts to protect them from fraud. Marketing 3 When executed correctly, marketing strategies focused on fraud protection can be used as a differentiator between similar organizations. Therefore, it is important for marketers to be aware of emerging security trends, and be able to clearly communicate how technologies work when they adopted by a fraud department. For marketing organizations that can do this effectively, it can be the difference between winning and losing customers.

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