With fraud on the rise and criminal schemes evolving quickly, it’s more important than ever to implement the right fraud tools to protect your organization.

Last year, consumers lost 70% more to fraud than in previous years. Businesses must protect themselves from the increasing number of stolen identity scams and take steps against schemes targeting businesses.

Over the past two years, 43% of organizations have been victims of external fraud, and identity theft is on the rise, with 1.4 million reports filed with the FTC in recent years. Experts believe this type of crime will increase at a rate of 53% a year in the near future, so protecting your business from these rising threats is more important than ever.

Look for These 5 Fraud Prevention Tools in Your Solution

The good news is that fraud solutions are evolving quickly to protect financial institutions and merchants from these different fraud schemes. New technologies and innovative tools help businesses protect their customers and bottom line from fraudsters. Consider these fraud prevention tools in your next fraud solution:

  1. Fraud score

    Fraud Score Infographic Fraud.net

Fraud scores are a valuable fraud prevention tool that increases visibility in real-time. Fraud score models leverage historical data to establish a baseline and compare each new transaction to this baseline.

If something is amiss, the transaction will get a high fraud score, and your fraud prevention team can perform a manual review. It’s a valuable tool for automating some aspects of fraud prevention. Fraud scores add a layer of defense in environments with high transaction volumes and can spot inconsistencies the human eye would miss. Plus, your fraud-prevention team can access these insights in real time for a reactive fraud-protection environment.

  1. Deep learning and machine learning

Deep learning and machine learning are transforming fraud prevention and other business processes. While data on its own reveals valuable insights, deep-learning and machine-learning models can go further by building decision-making processes based on data.

Machine learning is a subset of AI that deals with building models able to ‘learn’ from datasets. Deep learning is a machine-learning method that relies on neural networks. These networks use a structure inspired by the human brain wherein each neuron or node has a unique weight in decision-making. A deep-learning model can adjust the weight of each node to continuously improve performance and make the model more accurate.

Criminals are taking advantage of the fact that human teams can’t keep up with the volume of online transactions. With machine-learning and deep-learning models, it becomes possible to monitor a large volume of data points, streamline internal processes, and spot patterns and unusual data points the human eye might miss.

  1. Know your customer/vendor

A know-your-vendor (KYV) solution should be part of your due diligence process when selecting a vendor or re-evaluating your contracts. A KYV solution allows you to verify the identity of your vendors and uncover crucial information regarding their practices.

A sound Know-Your-Customer (KYC) solution is vital to meet compliance standards created by KYC and AML laws for financial institutions. With a KYC solution in place, you can set your own policies and automate the process of confirming your customers’ identity thanks to a mix of proprietary and third-party data.

  1. Transaction monitoring

Transaction fraud is a risk for any business that handles online payments. A transaction monitoring tool can look at thousands of data points for each transaction, compare payment data with known stolen credit card numbers, and detect any inconsistencies.

For instance, a transaction monitoring tool can flag a purchase if the device’s IP address doesn’t match the billing or delivery address. It’s a must-have tool for protecting your organization from account takeover schemes and payments with stolen credit cards.

And with AI, transaction monitoring tools lessen the impact of fraud by flagging fraudulent transactions before they happen, scoring them against previous transactions and fraud data. As a result, you can protect your business more effectively and efficiently, as well as decrease your fraud team’s overhead costs and tedious manual reviews. 

  1. Fraud prevention API and AppStore

Choosing a fraud prevention solution with APIs allows you to build a customized infrastructure that reflects your unique risks.

Fraud.net facilitates fraud prevention by combining different data sources and tools via a central platform. Our off-the-shelf APIs support third-party integrations, so you can work with data from customer IDs, device fingerprints, social media activity, and more.

You can also use our user-friendly dashboard to access Fraud.net’s AppStore and manage the APIs and data sources that make sense for your fraud-prevention programs. With 25 different tools, you can build a fraud solution that reflects your unique needs and make changes as your organization grows.

How Fraud.net can keep you safe

By relying on AI and machine-learning models, Fraud.net keeps thousands of customers safe from the common fraud schemes discussed above. 

We offer an off-the-shelf solution powered by the latest AI innovations that are cost-effective, easy to implement, customize and use. And, our solution includes the quality fraud prevention tools mentioned above.

To fit your non-singular scope, growth, and changing needs, Fraud.net has modular fraud solution templates and standards, including fraud detection and data-driven prevention technology features, such as auto-canceling transactions at a risk score threshold.

Leverage billions of insights, reduce false positives, and decrease the time needed to review fraud cases with our efficient, real-time risk-scoring platform. The less time you spend on fraud prevention, the more time you can spend growing your business. 

Protect your organization against fraud schemes now. Book a free demo to see how Fraud.net can make a difference.