Why Should Businesses Use Professional Fraud Prevention Solutions?
Posted by Sofia Levine
from the Business category at
22 Aug 2023 11:46:35 am.
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Fraud prevention solutions use complex technologies and continuous development to protect your target audience's trust in your company.And they can save your finances from unauthorized access by bad actors. A successful fraud attempt could have a domino effect on your enterprise's reputation and encourage others to attempt to breach your internal systems.Furthermore, in some industries, the use of high-tech fraud prevention tools may be required by the relevant industry authorities.
Banks, for example, must have zero tolerance for customer fraud. And if they don't take all the necessary steps to prevent it, they could become liable for fines or legal repercussions. Fraud prevention solutions can systematize and streamline the internal processes of companies or institutions and can perform checks in milliseconds to determine whether a pending transaction is legitimate. Fraud management solutions use AI to stay one step ahead of threats and ensure your business will operate at normal parameters no matter how many fraudulent attempts you face.
What Technologies Are Used in Fraud Prevention?
The number of online fraud attempts is constantly increasing. And for this reason, companies that offer professional fraud management solutions must continuously innovate. The AI revolution of the last few years is giving machine learning an increasingly prominent role in identifying threats and unusual patterns before fraudsters can significantly affect your company's business data. AI algorithms can analyze an impressive number of data source sin real time, detect irregular usage patterns of network users, and block suspicious transactions faster than a human operator could.
Analysis of users' financial data and past behavior is one of the primary methods by which a professional fraud prevention tool can identify a suspicious transaction. And the variables here are too many to count. If the user made several transactions in a short period, the geographical location of the transactions changed regularly, or if the IP does not correspond to the expected financial data, then it is very likely that a fraud attempt was made, and the transaction should be rejected. The whole process has to be completed in less than a second. And when talking about hundreds of such requests every minute, using professional solutions becomes a practical necessity.
It Continues from Here
Fraud prevention solutions can implement biometric authentication measures that significantly improve the security of accounts and could analyze the unique characteristics of devices typically used to access company services. If, for example, the customer tries to buy a plane ticket with an iPhone when, so far, all transactions have been done from Android devices or desktops, then this could raise some questions.
Fraud management solutions involve real-time monitoring of sensitive data, use neural networks to identify trends in fraud attempts, a rule-based system to provide a risk score for each transaction, and can reintegrated with the API of other third-party solutions. Why is this important?One word: flexibility. Third-party API integration results in better scaling of the services, and companies can add or remove the required data sources depending on events and trends in the market.
What Fraud Attempts Can Businesses Encounter?
By far, the most common type offraud attempt encountered by companies operating on a national and international level is phishing, which is a practice by which bad actors attempt to gain access to sensitive information, such as banking data, by using deception strategies that slip past the security protocols put in place by the management. The success rate of phishing attacks is low. But the number off fraudsters is growing steadily, and by employing the economy of scale, the perpetrators behind the attacks can raise substantial sums.
Fraud management solutions can flag phishing scams before they get picked up by human operators and could automatically ban the IP of the accounts behind the attempts. And the same goes for payment fraud, which can be one of the costliest scams for emerging businesses. A payment fraud prevention tool could prevent fraudulent charge back attempts, monitor in real-time the behavioral patterns of users, flag anomalies, prevent the creation of multiple fake accounts, and reduce the effectiveness of social engineering fraud tactics.
Using Artificial Intelligence, fraud prevention solution scan reduce the number of fraudulent transactions affecting your company's bottom line by up to 50%, identify phishing and payment fraud attempts up to four times faster than traditional solutions, and be salable to your organization's growth prospects. A fraud prevention tool that has access to your company's databases could validate in less than a second the transactions of more than 99.9% of your customers and eliminate fraudulent payments that could affect your business's finances.
It Can be Mandatory
The long-term success of the enterprise you manage may be closely linked to the effectiveness of the measures taken to prevent fraud attempts. Illegal access to your users' confidential data could devastate your brand's reputation. And in some industries, such as banking or healthcare, youcould even be liable for lawsuits. Professional fraud prevention solutions could be one of the best ways to keep the profitability of your business highland discourage future attempts by potential fraudsters.
High-quality fraud prevention tools use AI to analyze companies' or institutions' databases, perform tens of thousands of checks every second, are salable per the economic growth prospects of the organizations that use them, can lead to a massive decrease in the number of false positive results, and can be cost-effective tools that reduce the workload of your employees. Using rule-based systems and neural networks, fraud management solution scan block the efforts of potential fraudsters before they have a chance to affect you economically. And that can help you save tens of thousands of dollars and safeguard your business's reputation.
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