Best Techniques For Detecting Online Fraud

Best Techniques For Detecting Online Fraud

With our growing online presence, online fraud has become a part of our everyday life. There is hardly a week gone by without hearing about someone falling victim to fraudulent actions. The truth is that fraud has been present in our lives since the beginning of time, as there was always someone willing to use other people for their own benefit. As long as there is profit to be made, there will be someone trying to make it by all means possible. The Internet has only given the fraudsters a wider set of victims. While before, they had to have physical access to the victims for their attacks, now they can reach anyone around the world in a matter of seconds which is why it comes as no surprise that cybersecurity threats are on the rise.

But, this doesn’t mean we have to live in fear and be afraid even to access the Internet. It has opened the doors to a whole new world of opportunities, from entertainment, studying to even working, that it would be impossible just to stop using it. No, there is no point in being afraid of the Internet, the real trick is to learn how to detect and prevent fraud. SEON’s fraud detection guide advises that there is no one-size-fits-all solution. Every business needs to develop its own strategy that will be the most effective for them. Luckily, there are various methods you can implement in your company to protect it from fraudulent actions.

The Most Common Types of Fraud

Before you can detect or fight the fraud, you need to know what you are fighting against. Different types of fraud can affect any business or organization, but the few of the most common ones are:

Card Not Present Fraud

Fraudsters use stolen credit card numbers to purchase products or services from your business. Once the legitimate card owner discovers an unauthorized transaction on their bank statement, they will submit a chargeback request. You will have to reverse the transaction, lose the sale revenue, and pay administrative fees.

Account Takeover

Fraudsters will gain access to the customers’ accounts and use them for their benefit by stealing personal data or money, purchasing items, or even applying for a loan or new card.

Data Breach

It happens when confidential, sensitive, or protected data is exposed to an unauthorized person or people. 2021 has been a record year for data breaches, with the total number of breaches exceeding 2020 numbers already by September.

Ransomware: This type of fraud occurs when fraudsters access business data and encrypt or block it so it can’t be accessed until the business pays a ransom. It can affect any type of business, regardless of its size.

Which techniques can you use to detect online fraud attempts?

Now that you know which threats you might be facing, it is important to know what you can do to detect them and prevent them before they can cause havoc in your business.

Security audits

By conducting regular security audits, you will be able to detect any flaws or vulnerabilities in your business that might allow fraudsters to exploit them. This will enable you to detect any fraud attempts easier as you will know which areas you should be more mindful of.

Educate your employees

By educating your employees about cyber threats, you will empower them to detect and prevent fraud attempts. Various types of fraud happen due to poor cyber awareness within a company. Educate your employees and ensure this doesn’t happen to you

Data enrichment

Implementing data enrichment allows businesses to gather more information about the users based on a single data point. It uses external and internal databases to create a better picture of the user, which helps businesses determine their risk factors and detect any fraudulent actions.

Social media lookup

It helps you learn about your users’ social media presence which is an excellent technique for verifying their identity. Even the lack of social media presence can indicate fraudulent actions.

Custom risk scoring

The key to fraud prevention is determining risks. Not all businesses will face the same risks, which is why your risk scoring needs to be customized to your company. This way, you can orient towards the most probable risks and not waste your time.

Discover the best techniques for your business and protect it from online fraud.

Was this article helpful?