In today's digital age, the best fraud prevention and mitigation software has been put under the spotlight more than ever before. With the rise of online transactions and financial activity, there has been a corresponding increase in the number of bad actors seeking any opportunity to defraud unsuspecting customers.
Fraud can have a devastating impact on businesses, causing them to lose millions of dollars, damage their reputation, and undermine the trust of their customers. To mitigate these risks, businesses need to implement fraud prevention software that can help them detect and prevent fraudulent activities. In this blog post, we will explore what fraud prevention software should offer and how to select a suitable vendor.
What is fraud prevention or fraud mitigation software?
Fraud prevention software is a tool or system that is designed to detect and facilitate the prevention of fraudulent activities. It uses techniques such as machine learning, AI, step-up authentication and fraud rules to analyze many unique data points to identify potential fraudulent activity or behaviour by bad actors.
Fraud prevention platforms are an essential tool for businesses that are focused on delivering digital services that enable the traction of financial value or store personally identifiable information.
What should fraud prevention tools and software offer?
1. Real-time monitoring and alerts
One of the most important features that fraud prevention software should offer is real-time monitoring and alerts. This means that the software should be able to mitigate fraudulent activities as they happen and alert the relevant stakeholders immediately. This can help prevent further damage and mitigate losses.
2. Flexible Multi-factor Authentication
Fraud prevention software should offer multi-factor authentication to ensure that only authorized individuals can access sensitive information or conduct financial transactions. These should support Authenticator Apps, PassKeys, biometric authentication, and push authentication. Although common, SMS authentication is being widely phased out due to security risks.
3. Risk assessment and scores
The software should provide a fraud risk assessment that identifies potential areas of risk and provides recommendations for mitigation. This can help businesses proactively address potential risks and prevent fraudulent activities from occurring.
4. Data analysis and reporting - with Audit trails
Fraud prevention software should provide a comprehensive overview of the customer journey. A single view of customer activity is a standard feature in the best fraud prevention platforms. This can help businesses gain insights into their financial transactions and identify potential areas for improvement. Reports should be customizable and easy to understand.
5. No code rules and policy engine
The best fraud prevention software enables its users to create and deploy rules and policies to protect it users, stop bad actors and introduce friction in the form of step-up authentication challenges such as Multi-factor Authentication
6. Single API and Integration marketplace
Fraud prevention software should be able to easily integrate with a business's existing platform and systems, a single API makes integration easy. The best Fraud Prevention Software platforms also have an integration marketplace that enables one-click enhanced functionality, such as Authsignal
What are the best fraud prevention tools and platforms in 2023?
- Authsignal - founded in 2021, Authsignal is a leading fraud prevention and mitigation platform that helps secure customer journeys with global customers in Canada, Australia, United States. Authsignal is SOC2 Cerfiteid and can be dropped into any idendity or authentication stack in a matter of days. They offer real-time fraud detection, passwordless authentication and a no-code rules engine.
- Sardine.ai - Sardine offers a payment-focused approach to fraud prevention and compliance. They work with crypto companies to monitor the processing of payments and help monitor transactions to enable increased transactions.
- Veriff - focused on preventing fraud of identity Veriff has a robust bio-metric offering that enables businesses to confirm and authenticate the matching of a customer's passport or driver's license to a recent photo. They help enable eKYC and ensure customers are not presenting a fraudulent idendity.
- Sekura Mobile Intelligence is focused on mobile intelligence. They help businesses prevent SimSwap Fraud by detecting if a customer's phone number has recently been compromised. This is vital for companies looking to use SMS OTP authentication. They also offer verifiable mobile credentials that help businesses understand if a mobile number matches a person's name and address, and date of birth.