8 Impactful Use Cases for Digital Trust

It's time for online organizations to reconsider their strategies for how and when they trust their customers, and identity is the key. For too long, organizations have responded to suspicions of fake profiles, online abuse and fraud reactively. However, if companies want to protect customers and provide a frictionless customer experience, they need to start establishing digital trust with their users early in the customer journey.

Digital trust is rooted in identity. Knowing  an individual’s online identity matches  who they claim to be,  enables an online business to assess the trustworthiness of that customer's activities throughout their journey. In this approach to preventing online deception, organizations tap into a broad network of data points, online connections and relationships to predict whether an individual’s activities will be authentic—and not malicious. This identity trust-focused approach is poised to improve more online operations than you might expect. These are the use cases where digital trust and safety will make a significant impact in the future. 

Biggest Use Cases for Digital Trust

Online deception is hurting both online businesses and their customers more than ever. Here are eight use cases where proactively identifying digital trust could have the biggest impact:

1. Online Marketplaces 

Online marketplaces rely on public trust in order to function. After all, who continues to buy or sell online when they realize they’re dealing with a shady counterpart? That’s a major problem for online marketplaces, such as PayPal, where an estimated 4.5 million illegitimate accounts were recently discovered. 

At the same time, imposter scams are flooding online marketplaces. According to the Federal Trade Commission (FTC), more than $2.3 billion of 2021’s scam-related losses came from imposter scams. This is where a person pretends to be someone they aren’t and tricks consumers into sending them money. 

A trust-driven approach solves these problems by proactively attacking their root: unknown identities. By examining people’s online connections and verifying that they’re legitimate buyers or sellers, companies can restore digital trust and safety in online marketplaces. 

2. Online Communities

In online communities, forums and review sites, information is the product. That means if people are posting fake reviews or bots are intentionally muddying conversations, the product is suffering. 

Additionally, people don’t want to engage in online communities that are plagued with misinformation or spam. According to an Invesp report, 54% of consumers¹ won’t purchase a product that features fake reviews, and more than 60% of those same consumers say they’ve noticed fake reviews on local sites in the last year. By pinning down trusted identities, platforms can clean up their online communities and build an environment where people feel comfortable interacting. 

3. Social Media 

Social media is meant to be a tool to encourage human engagement. However, with bots, scammers and misinformation riddling modern platforms, users are getting worried. According to Statista, 40% of U.S. parents² of teens are “extremely concerned” that fake accounts or bots might be trying to sell consumers things or influence them. Social media accounts could use digital trust to confirm that humans are the ones engaging in these social arenas. Ultimately, that could reduce online anxiety, cut down misinformation and promote more healthy social media engagement. 

4. Dating Sites 

Online dating often puts vulnerable, sometimes lonely people at risk of scams. According to the FTC, romance scams led to a record $547 million in losses³ in 2021. It’s yet another setting where digital trust could protect people and encourage them to participate more. After all, if you know you’re interacting with a trusted human, you’ll be more likely to open up, feel safe and dive into the online dating pool.

5. Online Gaming 

It may not be well known outside gaming circles, but online gaming is a hotbed for dishonest behavior. In fact, a 2022 TransUnion report⁴ found gaming experienced one of the biggest jumps in digital fraud in 2021. Online gamers are often exposed to in-app purchase scams, gold farming fraud and other deceptive tactics put on by shady actors. By identifying digital trust in gamers’ profiles, online gaming companies can create a world where gamers can have fun and feel safe at the same time. 

6. Streaming Services 

Across streaming services, people are misusing identities to access content they aren’t paying for. At the same time, account hacks are hurting users’ experiences. According to Digital Information World, more than 1 out of every 10 people⁵ say they’ve had their streaming accounts hacked. By leaning on identity trust, streaming services could improve their users’ experiences while making sure people stay in control of their accounts. 

7. Online Account Origination

Financial services constantly have to adjust to the newest and most sophisticated types of fraud. And customer threats, such as account takeover fraud, are severe problems. However, traditional fraud prevention isn’t keeping up with new, advanced types of fraud. Rather than reacting to suspicious activities and declining legitimate transactions, financial services could use digital trust to see who is a loyal customer—and who is an unknown criminal. 

8. Online Retail and Ecommerce 

It’s no secret that online retailers are losing massive sums of money every year to online fraud. However, what’s less obvious is the amount business merchants lose as they fight fraud on a reactive basis. Often, a merchant’s efforts to fight fraud triggers false declines, which can turn away customers forever. 

A trust approach can help online merchants provide a hassle-free experience for customers as they fight fraud. By identifying trust, the company focuses less on behaviors and more on the individual who’s making purchases. That means fewer customers are pestered and frustrated in the process. 

Learn More About Identity Trust

Want to learn more about how to use data, connections and relationships to identify trust? See how Pipl Trust helps organizations automate trust decisioning and reduce friction throughout the customer journey. And contact us anytime to schedule a proof of concept or to book a meeting.

1. www.invespcro.com/blog/fake-reviews-statistics/
2. www.statista.com/statistics/881017/fake-social-media-accounts-bots-influencing-selling-purchases-usa/
3. www.ftc.gov/news-events/news/press-releases/2022/02/ftc-data-show-romance-scams-hit-record-high-547-million-reported-lost-2021
4. www.solutions.transunion.com/global-digital-fraud-trends/
5. www.digitalinformationworld.com/2020/05/more-than-1-in-10-people-have-had-their-streaming-account-hacked.html