July 14, 2021
A fraud detection API has the potential to significantly boost control and flexibility for various types of organisations.
But at what point is it necessary to step up to a higher standard in payment fraud prevention and detection, like the solutions engineered by Fraudio?
Application Programming Interfaces (APIs) for fraud detection and prevention are highly advanced and technologically sophisticated systems. However, the basic principles behind API mechanics are surprisingly straightforward.
APIS enable the two systems to work together, seamlessly connecting software suites or apps and sharing data accordingly. This can be extremely useful in the field of fraud transaction detection and prevention, as it enables businesses to pair their existing software with fraud prevention systems like Fraudio.
Protecting your organisation from the attacks of fraudsters means analysing and scrutinising as much information as possible in real-time. Conducting manual checks may be impractical or impossible, just as in-house security software and general safety protocols may not be sufficient to thwart sophisticated fraudsters.
This is where it often proves beneficial to use fraud prevention APIs.
The success of a fraud detection system is dependent on its access to relevant data. Data is gathered in a variety of forms and via numerous interactions, including but not limited to the following:
The key to a powerful prevention system is to access as much customer data as possible. The key points where you want to gather user data are:
All of this data will subsequently be transferred to the organisation’s preferred fraud detection system, in order to check for discrepancies or irregularities. Fraud detection machine learning enables the system to scrutinise the data on a much deeper level, literally ‘learning’ and expanding its capabilities with every transaction or interaction.
A ‘risk score’ is then established and assigned by the system, which provides an indication to the user as to the safety or otherwise of the activity. A manual decision can then be made as to whether to Approve, Decline, or Review the activity further.
Examples of the kinds of activities that may be flagged as suspicious or in need of manual analysis include the following:
The volume of data that needs to be analysed almost instantaneously to conduct these kinds of checks in real-time is staggering. Which is precisely where cloud-based, AI-powered systems like Fraudio can prove invaluable for many different types of organisations.
The question as to when it is best to use a fraud detection API depends on how seriously you take fraud prevention. Irrespective of the size and nature of the business you run, proactivity holds the key to prevention and protection.
As for the specific benefits of using fraud prevention APIs, systems like Fraudio can prove advantageous in the following ways:
Ultimately, an intelligent fraud prevention API can bolster your organisation’s financial security, while significantly reducing the workload for you and your employees.
Hence, the answer to the initial question as to when fraud detection API should be integrated is…as soon as realistically possible. If not already using the most robust measures to protect your business, your risk of falling victim to fraud could be escalating by the day.
Book your obligation-free consultation with a member of the Fraudio management team today to learn more about our state-of-the-art fraud prevention system.
How about trying our solution and experiencing the next generation for yourself?