E-commerce businesses wrestle with two challenges: preventing fraud before it strikes and ensuring that legitimate customers can check out quickly and easily. Cybercriminals are faster and more sophisticated than ever before, using AI-powered bots, stolen credentials and fake identities to get around security measures. Tech-savvy consumers, on the other hand, expect seamless transactions—instant logins, one-click payments and no time-consuming verifications.
To maintain loyalty and trust, it’s more important than ever for e-commerce companies to strike a balance between robust security and a flawless user experience. Here, members of Forbes Technology Council discuss how businesses can address this issue head-on and demonstrate how smart strategies can support both strong security and steady sales.
“Frictionless fraud prevention starts with trustworthy identity data. By unifying digital identities across systems (using context like device, behavior and historical access), companies can verify legitimacy invisibly. Strong governance behind the scenes lets customers check out seamlessly while risks stay contained.” – Craig Davies, Gathid
Move Security Beneath The Surface
The best path forward is to move security beneath the surface, protecting data invisibly rather than interrupting the checkout flow. The goal is to make identity verification invisible to the customer but verifiable to the system. Rather than adding new checkpoints, forward-thinking e-commerce merchants are moving identity into the orchestration layer of their infrastructure. – Ruston Miles, Bluefin
Combine Passive And Step-Up Verification
A layered approach combining AI-powered passive identity verification with step-up verification ensures that only suspicious users face extra scrutiny, keeping most customers on a fast track with zero friction. Passive identity verification is based on real-time risk scoring, while step-up verification is triggered when risk signals spike. – Sunny Banerjee, First Citizens Bank
Use AI-Driven Risk-Based Authentication
Strengthen digital identity verification with risk-based authentication using AI and machine learning. These systems analyze transactional and behavioral data in real time, spot erratic buying patterns or unusual locations, and automatically add extra authentication (like a biometric check). The adaptive approach moves legitimate shoppers along quickly and intercepts fraud before checkout. – Munil Shah, Talkdesk
Leverage Behavioral Biometrics For Invisible Verification
E-commerce organizations can enhance digital identity verification by using AI-powered behavioral biometrics—analyzing keystrokes, mouse patterns and device habits in real time. This invisible layer of intelligence distinguishes genuine users from fraudsters, strengthening security without disrupting the seamless checkout experience. – Vishwanadham Mandala, Cummins Inc.
Evaluate Requests With Invisible Bot Protection
Companies can use invisible bot protection that evaluates every request in real time, analyzing signals like device behavior and traffic patterns. In this way, only risky activity gets challenged, while legitimate customers enjoy a seamless, uninterrupted experience. – Benjamin Fabre, DataDome
Blend Behavioral Biometrics With Adaptive Risk Scoring
The smartest fraud prevention blends behavioral biometrics with adaptive risk scoring. Instead of extra logins or one-time passwords, the system silently learns a user’s typing rhythm, device habits and navigation flow. Genuine customers pass naturally, while anomalies trigger step-up verification. True security now lies in invisibility—detecting risk without disrupting trust. – Thanh Pham, Saigon Technology
Detect Fraud With Deep Neural Networks
Deep neural networks can be used by e-commerce companies to examine large amounts of transaction data and identify minute fraud trends. These models detect suspicious activity in milliseconds while allowing legitimate customers to check out without any issues because they understand the intricate relationships between user behavior, device type and transaction context. – Sourav Sethia, Amazon
Apply Real-Time Behavioral Analysis And Device Intelligence
By analyzing user patterns, device and browser signals, and transaction context in the background, e-commerce companies can better differentiate legitimate customers from AI-driven fraud attempts. With 41% of fraud now AI-powered, real-time behavioral analysis and device intelligence are must-haves to protect revenue without adding friction for customers. – Dan Pinto, Fingerprint
Tie Accounts To Verified Digital Identities
Tie each customer account to a verified digital identity using government ID and live biometrics. Every transaction then confirms a real person in real time—eliminating reliance on passwords and one-time codes while keeping checkout seamless, secure and resilient against fraud. – Michael Engle, 1Kosmos
Use Recaptured Identity Data To Flag Risks Early
Cybercriminals use stolen credentials and session cookies to create synthetic identities that can evade traditional security. By using recaptured identity data to assess risk before login or checkout, e-commerce brands can flag high-risk users or fraudulent accounts early, preventing account takeovers and fraud while maintaining a seamless experience for legitimate customers. – Damon Fleury, SpyCloud
Adopt A Layered, Orchestrated Verification Framework
In today’s high-fraud environment, identity verification has to be layered and well-orchestrated to minimize friction for legitimate customers. Adaptive user verification scenarios—composed of passive checks, device and behavioral signals, credential verification, and a step‑up to biometric and document proofs when required—automate fallbacks to minimize friction while maximizing assurance. – Henry Patishman, Regula
Combine Behavioral Analytics With Adaptive Authentication
One effective approach is combining AI-driven behavioral analytics with adaptive authentication. By understanding users’ behavior in real time, anomalies can be detected without impacting the experience of your trusted customers. In this way, you can provide both the convenience your customers expect and the fraud protection your organization needs. – Harvendra Singh, Publix Super Markets Inc.
Tailor Verification To Platform Type
Mobile apps can leverage digital footprints for identity validation. By contrast, Web applications require behavioral biometrics, such as typing speed, mouse movements and swipe gestures. Additionally, AI-driven risk profiling can facilitate a seamless checkout process for genuine customers while identifying unusual activities that may indicate fraud. – Ramesh Jitta, CAPITAL ONE
Pair Device Fingerprinting With Adaptive Authentication
Adopt device fingerprinting and passive signals—like geolocation, network patterns and device history—to authenticate users invisibly. Pair these with adaptive authentication, which dynamically adjusts security checks based on real-time risk scores. This ensures strong protection while maintaining a smooth, low-friction shopping experience. – Joydeb Mandal, Accenture
Leverage Automation And Centralized Data For Monitoring
Leverage automation, centralized data and real-time monitoring to validate customers as they shop. By drawing on behavior patterns, purchase history and device recognition, organizations can quickly spot anomalies while trusted returning customers enjoy a seamless checkout experience. The proactive approach keeps fraud prevention effective and minimally intrusive, protecting revenue and trust. – Georgia Leybourne, Linnworks
Adopt Adaptive Trust Models
Organizations can strengthen digital identity verification by adopting adaptive trust models that adjust security dynamically based on behavioral patterns and context. Using AI-driven risk scoring at the edge, systems can authenticate users invisibly through device signals, biometrics and intent analysis. This creates a seamless yet resilient verification layer that evolves with each interaction. – Nicola Sfondrini, PWC
Build A Multilayered Identity Graph
E-commerce companies can improve security by using a multilayered identity graph that cross-references alternative data—like phone and email history—in milliseconds. As it’s been said, “Robust verification is built on a network of silent, interlocking data points.” – Uttam Kumar, American Eagle Outfitters
Move From Verification To Prediction
The strongest digital identity systems move from verification to prediction. By combining behavioral analytics, device intelligence and intent modeling, e-commerce platforms can spot fraud before checkout even begins. The future of security isn’t stopping bad actors at the gate; it’s removing the gate for everyone else. – Anusha Nerella
Embed Tokenized, Behavior-Based Trust Layers
E-commerce organizations can strengthen digital identity verification by embedding tokenized, AI behavior-based trust layers that evolve through every interaction. Rather than relying on static checks, identity becomes adaptive, learning from context and real-time behavior. This creates a frictionless flow where protection feels invisible and customers become verified stakeholders. – Charles Morey, MobilEyes Inc.
Unify Digital Identities Across Systems
Frictionless fraud prevention starts with trustworthy identity data. By unifying digital identities across systems (using context like device, behavior and historical access), companies can verify legitimacy invisibly. Strong governance behind the scenes lets customers check out seamlessly while risks stay contained. – Craig Davies, Gathid
