Fraud is seriously on the rise, and it’s wreaking havoc on businesses. In the first six months of 2023 alone, £580 million was lost to fraudsters, with fraud being identified by UK Finance as “a national security threat.”
APP fraud accounted for around 40% of all fraud losses in 2022, with new rules coming into effect in 2024 that compel businesses to compensate at least 50% of lost funds to victims.
This all means that, for businesses, it’s more important than ever before to take steps to protect themselves against fraud.
As well as reducing potential losses, this will help ensure your business stays on the right side of regulations, protect your operations and processes, and build stronger customer trust.
Fraud detection software is typically the best solution to bolster your business’s defences and outpace cybercriminals.
There are several key considerations to take into account to ensure you choose the best fraud detection for your business’s needs. Here are the main factors:
Businesses in different industries, and of different shapes and sizes, are likely to have different fraud prevention needs.
It’s crucial to clearly define your requirements to select the most suitable solution.
There can be a major disparity in the costs associated with the various fraud prevention solutions out there. It’s vital to understand what features you need to avoid spending on tools that your business won’t use.
Different vendors offer different pricing models, such as subscription plans, flexible pricing plans, or models that operate on a per-transaction basis.
You may wish to take advantage of a free trial period, if available, to check an option’s suitability before committing funds.
Some of the features you may want to consider in fraud protection software include:
This collaboration platform effectively detects fraud in real time, with fincrime teams across multiple merchants working to detect fraud and alert customers to possible threats.
Underpinned by advanced encryption, Salv Bridge cuts out the time delay inherent in waiting for fraud suspicions to be confirmed, making it much easier to recover funds.
Businesses using this solution could see an 80% success rate in fund recovery, making for significant savings in customer chargebacks.
DataDome Fraud Protection provides comprehensive, AI-powered protection for a vast array of fraud threats, including credit card detail theft, log-in detail theft, account takeover attacks, and credit stuffing.
This solution has over 50 integrations and can run anywhere in the cloud. It’s also compatible with all tech stacks and third-party tools, and its formidable machine learning capabilities mean it’s constantly evolving and able to protect against even newly emerging threats.
Currently only available to banking institutions, Mastercard Consumer Fraud Risk uses real-time payment data and AI to detect scams before money is taken from a customer’s account.
As well as helping prevent fraud, it’s useful in better understanding the difference between legitimate and fraudulent transactions to improve detection rates over time.
EBA Clearing was launched as a pilot across nine banks in 2023. It covers a range of real-time fraud detection and prevention tools and aims to develop effective models for identifying fraud patterns.
The long-term plan is to provide post-transaction investigative capabilities as well as account and transaction risk assessment functions.
Swift GPI is designed specifically for cross-border transactions for financial institutions and banks, allowing users to initiate, respond, and deliver payment recalls and reroute funds back to customers.
The solution’s in-built automation results in faster recalls and decreased cost and effort spent on the manual work involved in stopping a payment.
Cifas manages the two largest fraud databases in the UK and provides extensive fraud intelligence and data to its network of over 600 organizations.
By sharing data from the Internal Fraud Database and National Fraud Database, the service addresses issues such as account takeover, identity fraud, fraudulent claims, and other types of scams.
Cifas offers various membership options depending on an organization’s requirements.
This fraud solution is suitable for corporate and retail banks, PSPs, fintechs, and acquirers. It focuses on undertaking precise customer risk assessment, uncovering fraud patterns, and detecting early risk signals.
By leveraging these elements, Feedzai offers fraud protection across multiple channels and a range of customer interactions.
It provides a high level of granularity regarding the detection of authorized push payment fraud and scams.
Verafin offers enterprise-level fraud protection, using targeted analytics and automatic analysis of customer behavior and historical activity.
The platform integrates third-party, open data, and cross-institutional sources to generate accurate, positive alerts and minimize the occurrence of false positives.
Verafin guards against a wide variety of fraud types, using machine learning and AI capabilities to do so.
A good option for businesses looking for a solution that won’t negatively impact their customers’ experience, ComplyAdvantage offers AML and AI-driven protection.
Able to detect fraud even in the pre-transaction stage, ComplyAdvantage covers more than 50 payment fraud scenarios and is also effective at uncovering incidences of organized fraud by linking fraudulent accounts controlled by the same entity or individual.
Resistant AI’s software is designed for fintechs and banks. It uses AI to effectively bolster existing risk points and enhance the work of in-house compliance and risk teams.
While providing solutions for detecting and preventing fraud, Resistant AI specializes in detecting document fraud and serial fraud.
The software uses identity and behavior profiling to spot potential fraudsters and reduce the need for manual reviews.
AI-powered fraud detection software Hawk: AI deploys AI to strengthen rule-based legacy systems, which sometimes struggle to adapt to changing regulations.
The solution’s real-time transaction processing facilitates the effective detection of fraud across a multitude of payment methods and channels.
Features include customer risk rating, transaction monitoring, customer screening, and fraud prevention.
Unit 21 offers fraud protection solutions to all business sizes, from start-ups to large-scale enterprises, including digital and traditional banks, fintechs, and payment companies.
It operates as a platform for data-driven fraud, risk, and compliance decisions, accomplished via fraud investigation and real-time transaction monitoring.
Unit21’s Marketplace Fraud feature offers a unified overview of customer transactions and actions to reduce a business’s losses from fraud.
With its streamlined approach to fraud detection, SEON leverages more than 50 types of digital footprint data and social signals to adapt to different risk levels.
The solution’s adaptability makes it highly adept at detecting and preventing fraud, and it can be used by many different types of businesses, including online lenders, e-commerce enterprises, payment gateways, crypto companies, iGaming businesses, and more.
Businesses worldwide are losing millions of dollars – and the trust of their customers – every day as a result of fraud.
With so many different types of fraud out there, not to mention newly emerging threats, it’s almost inevitable that your business will be targeted at some point.
Whether you’re the owner of a start-up company or a long-established, large enterprise, it’s vital to have an effective defence in place.
By thinking carefully about your business’s needs and the features you require in a fraud prevention solution, you can protect both your organization’s sensitive data and customers’ information today and in the future.
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