{"id":20167,"date":"2022-10-06T06:00:45","date_gmt":"2022-10-06T13:00:45","guid":{"rendered":"https:\/\/www.trulioo.com\/?p=20167"},"modified":"2023-08-21T18:05:34","modified_gmt":"2023-08-21T18:05:34","slug":"protect-online-marketplace","status":"publish","type":"post","link":"https:\/\/www.trulioo.com\/blog\/marketplaces\/protect-online-marketplace","title":{"rendered":"Protect your online marketplace with a risk-based approach"},"content":{"rendered":"\n

One bad actor can sow mistrust, commit fraud and damage an online marketplace\u2019s reputation.<\/p>\n\n\n\n

But how do marketplaces strike the balance between limiting risky accounts and avoiding heavy-handed security controls? People expect a welcoming online destination that delivers trust and safety<\/a>, but they don\u2019t want a cumbersome, time-consuming onboarding experience.<\/p>\n\n\n\n

The right strategies and tools can help marketplaces meet customer expectations while controlling risk.<\/p>\n\n\n\n

Know your audience<\/h2>\n\n\n\n

Understanding your audience is crucial in creating a strategy that minimizes risk and optimizes performance. What countries are your customers in? What is the average transaction price? How many transactions do vendors conduct?<\/p>\n\n\n\n

Answering those questions and determining the associated risks are the first steps in deploying a risk-based approach<\/a> (RBA). Financial services companies have long used RBAs to mitigate fraud, risk and financial crime. It\u2019s a powerful model for online marketplaces to adopt.<\/p>\n\n\n\n

It\u2019s not one strategy, but rather a holistic approach that adapts risk controls to fit a given situation. For example, a vendor selling used home goods is not the same as someone selling expensive watches.<\/p>\n\n\n\n

Key business strategies around acceptable use, terms and conditions, monitoring and enforcement, data protection, and operating procedures factor in to an RBA. But the approach offers flexibility for fine-tuning based on marketplace sector, customer or vendor. That refinement allows marketplaces to better match risk controls with the situation.<\/p>\n\n\n\n

With the right technology stack, the RBA can adapt to the marketplace\u2019s changing needs.<\/p>\n\n\n\n

Creating a trusted platform<\/h2>\n\n\n\n

Marketplaces can create trusted platforms by applying tools that quickly share and analyze customer and vendor data. Through data analysis, patterns emerge that help uncover bad actors and highlight trusted parties.<\/p>\n\n\n\n

Building trust in a marketplace starts during onboarding. Vetting customers and vendors at the start helps verify legitimacy before they engage with the platform.<\/p>\n\n\n\n

Vetting might sound simple, but digitally verifying a person or business can be complex, especially with a global audience transacting in a borderless economy. Verification includes:<\/p>\n\n\n\n