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June 12, 2023 • Issue 23:06:01

Solving the digital identity crisis – Part 1

sectors of the identity community who are calling for an
immediate, proportionate response to identity theft and
other fraudulent activities.

Suresh Dakshina, co-founder and strategist at Chargeback
Gurus, noted that digital commerce never sleeps. "We live
in an Amazon world where customers can place orders and
file disputes around the clock, and brands need to live up
to those expectations," he said, adding that current card
issuer zero liability policies make it easier for consumers
to file a fraud dispute than a customer service dispute, and
as a result, true fraud and first-party fraud are on the rise.
Fluid, dynamic identities

Having seen lines blur between good customers and
fraudsters, Dakshina pointed out that economic pressures
or impulse buys that lead to buyer's remorse can push
By Dale S. Laszig legitimate customers over the line to first-party fraud.
Merchant attitudes about these customers are changing,
t's been said that a new car depreciates the minute and in some cases, merchants who may have previously
it leaves a dealer's lot, but the opposite is true for written off a customer will try to lure them back with
the transaction. That down payment made by ACH, personalized discounts and offers, he noted.
I debit or credit card has just begun its useful life.
"Merchants were either fighting disputes or writing them
After verification, authentication and credit approval, off and never reaching out to the customer," he said. "A
funds change hands, credit limits update, and sales are more effective strategy would be to send them an email,
inextricably linked with customer profiles and dealer saying, 'I know you've filed a dispute and we're very sorry
transaction histories. The resulting trove of customer for your experience, but instead of filing a dispute or not
data creates opportunities and challenges for financial using the product, I would love to give you a deep discount
professionals and cybercriminals alike. to earn your business.'"

This two-part series explores the high-stakes digital
identity battlefield where fraudsters and security experts
deploy the same technologies with different endgames in Contributed articles inside by:
mind. As recent reports demonstrate, consumers, business
owners and service providers are this war's collateral
damage, and experts predict casualties will get worse Ken Musante ..........................................................................................15
before they get better. Nick Cuuci................................................................................................28

Chief among concerns is the need for agile verification, Scott Buchanan .....................................................................................32
authentication and fraud detection in a world of real-time
payments, instant credit decisioning and 24/7 customer Allen Kopelman .....................................................................................34
service. The Green Sheet interviewed experts from numerous

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