{"id":8289,"date":"2025-05-27T20:09:30","date_gmt":"2025-05-27T20:09:30","guid":{"rendered":"https:\/\/leap.staging.ribbitt.com\/evs\/?p=8289"},"modified":"2025-05-28T19:41:07","modified_gmt":"2025-05-28T19:41:07","slug":"why-payment-processors-need-real-time-id-verification-to-combat-the-growing-threat-of-first-party-fraud","status":"publish","type":"post","link":"https:\/\/leap.staging.ribbitt.com\/evs\/insights\/why-payment-processors-need-real-time-id-verification-to-combat-the-growing-threat-of-first-party-fraud\/","title":{"rendered":"Why Payment Processors Need Real-Time ID Verification to Combat the Growing Threat of First-Party Fraud\u00a0"},"content":{"rendered":"\n

Thanks to innovations in AI and Robotic Process Automation, spotting traditional fraud has become easier and more efficient, but battling first-party fraud is more challenging on multiple fronts. First-party attackers do everything from inflate their income on loan applications to lie about product deliveries. If you host or maintain an e-commerce platform, you’ve likely already made a criminal’s hit list \u2013 and that criminal looks just like any other consumer.<\/p>\n\n\n\n

Basic identity verification might keep shoppers from abandoning their carts, but it won’t stop first-party fraudsters from exploiting “Item Not Received” refunds and scamming “Buy Now, Pay Later” plans. However, all is not lost. There’s one way to have your ecommerce cake and eat it, too: By integrating first-party fraud protections that are just as quick as they are comprehensive.<\/p>\n\n\n\n

Don’t wade into the world of e-commerce unarmed against the waves of first-party fraud. Instead, protect your assets, reputation, and customers with robust, real-time ID verification solutions from EVS. Our fast, highly accurate Blue Assure platform builds layers of safety between fraudsters and your business.<\/p>\n\n\n\n

\"may<\/figure>\n\n\n\n

The Rise of First-Party Fraud: A Crime That’s Gaining Speed & Taking Businesses Down<\/h2>\n\n\n\n

First-party fraud is so difficult to spot because you’re not dealing with bad actors or cyberhackers. “First party” means actual consumers who are using their real identities are intentionally deceiving businesses for personal gain. The effects of fraud on businesses are undeniably damaging, and no one is immune: A 2023 Visa survey explored e-commerce transactions throughout the United Kingdom and found that, in just one fiscal year, an astonishing nine out of 10 small businesses fell victim to first-party fraud<\/a>.<\/p>\n\n\n\n

All e-commerce industries, from clothing retailers and iGaming platforms to fintech corporations and restaurant apps, are susceptible to first-party fraud. Criminals often test new schemes on high-risk financing industries first \u2013 these attacks can lead to massive payouts \u2013 but as their confidence grows, fraudsters will target other sectors until their method no longer works and they’re forced to create another.<\/p>\n\n\n\n

Although the level of first-party fraud exposure your business will receive directly correlates to its number of customer interactions, transaction types, information collected, and internal payment processes, these attacks almost always result in one or more bad outcomes:<\/p>\n\n\n\n

\"may<\/figure>\n\n\n\n

Why First-Party Fraud Is Growing<\/h2>\n\n\n\n

Every brand that sells in the e-commerce space needs to deliver frictionless checkouts. Customers bounce out of carts faster than yellow traffic lights turn red, and many companies mistakenly believe that the only way to hold consumer attention and increase sales is by reducing backend verifications. And we get it! The brand that prioritizes a seamless user experience is rewarded with even more users.<\/p>\n\n\n\n

But here’s the problem with that flawed route: The easier it is for shoppers to bypass your e-commerce checkpoints, the more likely they are to see just how much they can get away with. Whether through chargeback fraud, loan stacking, fronting, or false claims of goods lost in transit, an increasing number of customers are turning to first-party fraud, simply because they can.<\/p>\n\n\n\n

To protect yourself from this exact scenario, here’s the motto we like to gift our EVS clients: “Frictionless Checkouts = Frictionless Fraud.” If you ever find yourself wanting to cut corners in online payments and sacrifice layers of security, keep this phrase top of mind. It’s more than a helpful perspective shift; it’s your lifeline out of danger, debt, and disaster. Frictionless checkouts without robust ID checks create easy entry points for first-party abuse.<\/p>\n\n\n\n

Block Fraud, Not Customers: Combating E-Commerce Fraud With Real-Time ID Verification<\/h2>\n\n\n\n
\"may<\/figure>\n\n\n\n

Here’s where the rubber meets the digital road. Businesses across every industry need workable solutions to fight first-party fraud without alienating their consumer base, and the only path toward success is by implementing secure online payments through real-time ID verification. EVS has witnessed firsthand how in-the-moment ID checks can effectively mitigate first-party fraud through a combination of robust security measures and customer-centric strategies. More specifically, here’s how to set your business up to successfully mitigate first-party fraud:<\/p>\n\n\n\n