What is Fraud Detection Software?

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What is Fraud Detection Software?

CFO Tech Outlook | Friday, October 01, 2021

Businesses that conduct business online, such as eCommerce merchants, financial institutions, and insurers, may use a fraud detection solution to safeguard their unique digital operations.

FREMONT, CA: New fraud attacks are routinely reaching the news amid booming eCommerce. Businesses are rushing to preserve revenue channels such as click-and-pick, Buy Online Pick Up in Store (BOPIS), mobile order-ahead, and more while protecting themselves against new types of digital fraud. eCommerce firms are turning to leading fraud detection software solutions for real-time, comprehensive fraud prevention that enables digital innovations, from international corporations to payment service providers and gateways.

Experts agree that certain components must be present for fraud detection software to be effective.

The most advanced technologies can identify old fraud schemes as well as to detect emergent fraud before it occurs. Five critical features should be present in the best fraud detection software:

Machine learning, both supervised and unsupervised (forms of AI).

• A customizable policy and rules engine.

• An alert engine.

• Alert management.

• An orchestration hub.

While criminal actors try to stay one step ahead of detection attempts, these aspects provide enhanced, real-time security. Businesses can also use fraud detection to halt fraud, avoid chargebacks, prevent account takeover, and reduce false positives and customer irritation.

What Is Fraud Detection Software?

Fraud detection software refers to a variety of cloud-based and in-house systems for preventing digital fraud in enterprises. Businesses that conduct business online, such as eCommerce merchants, financial institutions, and insurers, may use a solution to safeguard their unique digital operations. Detection can happen at any point along with the customer experience to safeguard against fraud in account creation, payments, login, and disputes.

Businesses benefit from the most effective fraud detection software in the following ways:

• Prevent losses from criminal and friendly fraud.

• Prevent damage to the brand.

• Protect the company's key infrastructure.

• Identify legitimate purchases to increase revenue.

• Reduce friction to increase client loyalty.

The best fraud detection software works in real-time to provide these benefits. Instead of detecting fraudulent transactions, accounts, or assaults after the fact, they work in tandem with every digital connection, constantly assessing risk. They can thwart several types of fraud that target weaknesses along with the client experience.

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