Omnichannel commerce, where customers shift constantly between online, mobile, and in-store shopping, is now the norm. While this unified experience delights consumers, it also creates significant challenges for fraud prevention. Fraudsters exploit gaps across channels, employing increasingly sophisticated tactics that traditional, siloed fraud detection systems struggle to counter. As a result, retailers and brands must adopt integrated, omnichannel fraud prevention solutions capable of protecting transactions regardless of how and where they occur. Here’s how delegates at the Fraud Prevention Summit are approaching the task…
1. Understanding the Omnichannel Fraud Challenge
Omnichannel retailing has blurred the lines between digital and physical sales channels. Customers might browse online, purchase via mobile, and collect products in-store—all within a single transaction. For fraudsters, this interconnected environment presents opportunities to exploit vulnerabilities across channels. Common challenges include:
- Account takeover attacks initiated online but executed in-store through fraudulent click-and-collect orders.
- Returns fraud, where items purchased online with stolen credentials are returned in-store for cash or gift cards.
- Mobile payment fraud, where stolen card data is used in digital wallets or apps, which are then redeemed physically.
Traditional fraud prevention solutions, often channel-specific, struggle to track these cross-channel fraud patterns effectively.
2. Integrated Fraud Detection Systems
To address these challenges, retailers are increasingly turning to integrated fraud detection systems that provide a unified view of transactions across all channels. Such systems leverage advanced technologies, including:
- Artificial Intelligence (AI) and Machine Learning (ML) to analyse transactions across channels, identify unusual patterns, and detect subtle signs of fraud in real-time.
- Unified customer profiling, which combines data from online accounts, mobile devices, and in-store purchases to create comprehensive risk profiles, spotting anomalies instantly.
- Real-time data sharing across channels, ensuring fraud patterns identified in one channel are immediately recognised and blocked across all others.
These integrated platforms enable retailers to track a customer’s entire journey, quickly pinpointing inconsistencies indicative of fraud.
3. Implementing Advanced Identity Verification
Omnichannel fraud prevention also relies heavily on robust identity verification measures that maintain security without compromising the customer experience. Effective methods include:
- Biometric authentication, such as fingerprint, facial, or voice recognition, providing secure, frictionless verification for online and mobile transactions.
- Behavioural biometrics, which analyse unique customer behaviours (typing patterns, device handling) to identify genuine users and flag suspicious activity.
- Adaptive authentication that dynamically adjusts verification requirements based on risk levels, reducing friction for trusted customers while tightening controls for high-risk transactions.
By employing these solutions, retailers can verify identities seamlessly, enhancing security without negatively impacting customer experience.
4. Building Collaborative Data Networks
A critical trend emerging in 2025 is collaboration between retailers, payment providers, and financial institutions. Shared data networks and fraud intelligence platforms enable organisations to pool anonymised transaction data, enhancing collective defence against fraud. Benefits include:
- Early detection of new fraud patterns through shared intelligence.
- Improved machine learning models that benefit from larger, diverse datasets.
- Stronger cross-industry partnerships, enabling quicker response and coordinated action against widespread fraud schemes.
5. Conclusion
Fraud prevention must be as interconnected as the customer experience it seeks to protect. By implementing integrated, AI-powered detection systems, advanced identity verification, and collaborative intelligence-sharing, retailers can secure transactions effectively across online, mobile, and in-store channels. These solutions not only mitigate fraud risks but also build consumer trust, ultimately driving growth and profitability in an increasingly complex retail environment.
Are you searching for Fraud Prevention solutions for your organisation? The Fraud Prevention Summit can help!
