What Are the Best Fraud Protection Technologies?

What Are the Best Fraud Protection Technologies?

Andy Mortland - What Are the Best Fraud Protection Technologies?

Andy Mortland

May 22, 2023

Fraud eats away at your business. Not only does it result in financial losses, but it also damages your brand, reputation, and growth. And the threat landscape isn’t getting better. According to PwC’s Global Economic Crime and Fraud Survey 2022,1 around half of organizations surveyed experienced fraud in the previous two years, with financial impacts sometimes exceeding $50 million. How can you protect your business from these devastating losses? There are four fraud protection technologies that can help prevent even the most advanced attacks across the customer journey.

THE CUSTOMER JOURNEY

Accertify’s Solutions Cover
Four Critical Areas

Accertify Account Protection detects risks to help determine whether a new customer is legitimate or a fraudster

Billions of email addresses, passwords, and other sensitive customer information are exposed on the dark web each year. 1033 records were breached in 2022 with 60,322,254 impacted records in the US alone2. The question is, what happens to all this stolen information?

Criminals use the data to take over accounts and open new fraudulent ones, making it difficult to distinguish legitimate customers from bad actors. Unable to detect an account holder’s identity, you’re stuck in an uncomfortable situation and forced to choose between providing a positive, frictionless customer experience or deeming the transaction as fraudulent to lower profit losses. This is where an effective account protection solution with digital identity comes in.

An account protection solution will help assess who is on the other side of a transaction and automatically flags suspicious behavior that indicates an account takeover or other fraudulent behavior may have occurred, enabling you to reduce losses without impacting the customer experience.

Device intelligence flags suspicious devices and account activity

Fraud protection is a massive concern for organizations with an eCommerce website. Cybercriminals can mask their location and with breached credentials and make it look like your valid customer logging into their account. Device intelligence can provide the full picture and help you understand how devices access your online services, the velocity in which a certain device accesses accounts and thereby identify suspicious activities to keep your customers account protected.

For example, it can pinpoint the device’s location and language setting. So, if it is identified that a tablet is set to a specific language that is not consistent with the other account information, it can be an indication of a higher risk of fraud.  As fraud becomes more sophisticated, device intelligence will become an increasingly essential fraud protection tool for organizations in all industry sectors.

Machine learning increases the speed and accuracy of your fraud review process

Machine learning has changed the way organizations approach fraud management. In the past, businesses were forced to rely on manual processes to review hundreds of potentially fraudulent transactions daily, which created a bottleneck for fraud teams that not only was time-consuming and expensive, but also made it difficult to scale operations.

Machine learning algorithms take an analytical, scientific approach to combating fraud risk by leveraging data.3 One of its most compelling features is the automation of fraud prevention processes. For example, it can automatically approve transactions from trustworthy customers, identify fraud trends in your industry, and flag suspicious account behavior in real-time-all without additional human intervention.

Top machine learning platforms also leverage community data, which is shared data from thousands of companies that can be drawn on to identify stolen credit cards, nefarious email addresses, and specific cities or neighborhoods experiencing higher levels of fraud. What types of results can it produce?  

By incorporating machine learning into your fraud management program, you gain an essential fraud protection tool that helps you improve risk decisioning so you can quickly and accurately identify fraud, prevent losses, and protect your bottom line. Machine Learning and AI Solutions helped our client Guitar Center Double Fraud Savings and Reduce Fraud Losses By 62%4

Automated chargeback management can help increase your win rate

The fight against fraud also included chargebacks which can be a major challenge for companies. Not only are they costly and a drain on internal resources, but chargeback regulations and guidelines are also complicated and constantly changing. In fact, research shows that 46% of merchants don’t dispute most chargebacks for this reason, and 43% doubt whether responding to disputes is worth their time5, as they believe there’s no chance of winning.

Fraud protection technologies that stop fraudsters

As you can see, there are many fraud prevention technologies that can protect your organization from bad actors. When you implement the latest technologies, you can stay one step ahead of fraudsters and experience a dramatic drop in fraud.

If you’re looking for help, Accertify offers a comprehensive fraud management platform that provides all the technologies above. The Accertify team consists of former in-house fraud and risk managers who understand the pressure you deal with daily. They can help you address threats and implement a fraud protection solution that helps safeguard your organization while delivering an excellent customer experience.

Contact us to request a consultation.

Sources:

1PWC’s Global Economic Crime and Fraud Survey 2022 https://www.pwc.com/gx/en/services/forensics/economic-crime-survey.html

2Privacy Rights Org https://privacyrights.org/data-breaches

316/09/22 How Machine Learning Is Enhancing Fraud Detection https://marutitech.medium.com/how-machine-learning-is-enhancing-fraud-detection-694f3a2237f

4Client data –2022 Guitar Centre https://www.accertify.com/case-studies/guitar-center/

5Accertify Javelin Survey Report 2021 https://www.accertify.com/white-papers/merchant-chargebacks-fraud-survey-2021/