9 Things To Consider When Choosing Fraud Detection Software For Your Business?

As the sophistication of modern-day cybercrimes is increasing, organizations need to combat these threats effectively. Cyber-attacks have far-reaching implications, including financial losses, theft of intellectual property, and loss of consumer confidence and trust. Cyber exploits can lead to damaged brand identity and loss of reputation. 

 Due to digital transformation, e-commerce frauds have increased at an alarming rate. As more people are shifting to online stores to purchase goods and services, cybercriminals are using intelligent tools to defraud e-businesses. The rise in fraud cases as more retail purchases are going online has also has opened the door to miscellaneous fraudulent transactions. Hence, it has become essential for organizations to integrate fraud detection software into their business platform.

 Modern-day fraud detection software uses machine learning-based approaches to recognize and combat digital fraud. Such software uses data analytics to assess potential risks. It can analyze global identity data and customer transaction patterns to determine the transaction’s nature, whether it is secure or malignant. You can use this data to stop online fraud and provide a better experience for your customers during the process. According to the research studies, ecommerce frauds increased by 45% in 2017. This has lead to losses of $57.8 billion across 8 big industries. Organizations need to use an anti-fraud strategy to make sure that they are accepting legitimate transactions to minimize the risk of fraud-related losses. Here are a few pointers that will enable you to choose the best eCommerce fraud prevention software for your business.

 · Real-time Transaction Screening and Review Automation 

It is time to forego the traditional methods and use a software solution based on AI and ML algorithms. Such software can learn various data patterns and insights. It can help you to understand and respond to problems and improve your decision-making capabilities. AI-based software can be used to increase automation, operational efficiencies and maximize revenue. The predictive analytics and data-based insights generated with AI-based software can help you detect and counter the anomalies in real-time. A highly adaptable software can analyze, and process tremendous transaction volumes see sophisticated fraud patterns. It should be capable of performing real-time screening to monitor user behavior and calculate risk figures to identify potentially fraudulent purchases, access, or transactions. Automation feature enables the software to detect, investigate and remediate cyber threats with minimal human intervention to identify fraudulent activities and prioritize alerts in real-time.

 · Following PCI Standards

Fraud Detection Software should be compliant with the Payment Card Industry Data Security Standards, or PCI DSS. The regulatory protocol seeks to enhance the security standards for cardholder data to reduce credit card fraud. The fraud detection software should enable the companies to adhere to these protocols on the e-commerce platform to make transactions more secure. A victim of e-commerce fraud will not expose your organization to a hefty lawsuit. Choose software that enables you to align with the stringent safeguard policies to make a lasting reputation by shielding consumers from identity theft and fraud.

 · Addressing Verification System

Fraud detection software should have AVS (Address Verification System) to verify, correct, and standardize residential and corporate addresses and other physical identifying data. Such tools will help you secure your business by verifying that the customer’s billing address is similar to the one registered on the credit card company. Verification of the reliability of physical addresses, mailing, shipping, and customer location data can help you to prevent pervasive fraud attempts.

 · Integration and deployment

What is the average deployment time that is required by the fraud detection software? Analyze if the solution can be deployed quickly. You can review the feedback the service solution has received from previous clients. It will help you weigh the pros and cons and learn about the deployment pitfalls and common issues. You also need to assess how easily can the solution be integrated into your existing hardware, software, network, and other infrastructure. Check the compatibility of the solution with your eCommerce platform.

 · Service Level Agreements

Ask your supplier to elaborate on the terms of the software solution. Will your software provider support the software through its entire lifecycle? Understand the vendor’s commitment to system up-time, performance during high volume times, and direct contact support. Before signing the agreement, read it closely to get a clear idea about the service terms and policies.

 · Cost

Fraud detection software comes at various pricing models. Some of the software solution suppliers offer the service base on fixed subscription plans; others support flexible pricing depending on the industry’s size and nature. You can review a few software solutions to check which one fits your company appropriately.

 · Handling False Positives 

How will the software cater to approval rates and false positives? False declines can hurt your business’s bottom line; you will be generating lesser revenue. This can also lead to dissatisfied customers, worsen your reputation, and decrease fraud detection accuracy. Understand how the software will validate the transactions and on what basis. Choose software that scans each transaction in a broad context.

 · Customer Support

Ensure that your software incorporates customer service tools. It should have a platform from where the customers can access the details about the purchase status and other information. It should also integrate tools like virtual assistants, chatbots to provide real-time assistance to customers.

 · Identifying Mobile Data

As mobile devices are being used increasingly to make purchases, it is essential to detect the fraud rising from mobile devices. Multi-level authentication that includes codes and biometrics can be used to sanction purchases made from such platforms.

 To Conclude:

These pointers will help you to choose the best fraud prevention software for your business. It will enable your organization to reduce fraudulent purchases and chargebacks, leading to a loss in revenue.