Fraud has become one of the most significant issues individuals and companies need to deal with daily. Preventing online fraud has become a priority for every company that wants to stay in business. Implementing fraud detection solutions can give them an upper hand in the fight against fraudsters.
Unfortunately, a large number of businesses are not keeping up to date with the latest cybersecurity trends, which brings them way behind with their cybersecurity strategy. They either believe they are not as big or as significant to be the ones affected by online fraud. This can’t be further from the truth, as nobody is safe any longer. Fraudsters will target just about anyone as long as they can make a profit out of them. It is not important what is the company’s size or which industry they work in; everyone can be a valuable target.
When dealing with online fraud, the biggest problem is that most businesses keep relying on the same old cybersecurity tools they have always used. In contrast, the fraudsters keep updating their malicious actions when targeting unsuspecting victims. Many companies haven’t even heard of API, let alone started implementing it to protect themselves and their customers from the growing online dangers. It is time to change that if you want to continue to run your business efficiently.
What is the secret behind fraud detection API solutions?
Fraud detection API solutions are so effective because they can detect fraudulent behavior before it can cause any significant damage. They do this by gathering as much information about the users as possible and determining users’ intent. If they detect any suspicious behavior or detect any malicious intent, these systems can take the necessary steps to put an end to it. This can be done either by reporting or blocking the user or even by demanding an additional verification method to ensure they are who they say they are.
For example, you might have an occasion of user signing in to your website from a new device located in the new country. Your standard processing system would not find anything suspicious with this behavior, but this would be considered a red flag for fraud detection systems. It could indicate your user has moved to another country, but it could also indicate the attempt of account takeover or identity theft.
This is just one example where fraud prevention tools can help your business, but there are hundreds more.
How does the API come into the picture?
The cybersecurity world is full of new and unfamiliar words, which can be a little bit frightening, especially if you just started looking into fraud prevention solutions for your company. You are probably already wondering, what exactly is API? But, have no fear; it is not as difficult to understand as you might expect. API, or Application Programming Interface, allows two systems to work together by enabling them to integrate, interact, communicate and share data with one another.
Implementing APIs is extremely useful in every part of the business, as it makes different processes more straightforward and easier to conduct, but it has become irreplaceable in the area of fraud prevention. In fraud prevention, API helps you protect your business by detecting fraudulent attempts before they can cause any significant damage while at the same allowing you to run and grow your business efficiently.
Speed: Can you imagine how much time and resources it would take you to analyze all the user data manually? Even if you have a small business that deals with less than a few users a day, you would still have to spend hours analyzing the data and determining the users’ intent. Not only would you have to manually input all the data you have collected but also you would have to rely on search engines to see if their data is correct. Fraud detection API can give you results in a matter of seconds.
Automation: Because these systems are fully automated, there is no need for you to pay attention to the process or double-check its results constantly. This will allow you to concentrate on your work while the fraud detection tools do their magic.
Easy to use: APIs are created to be used by various businesses with different levels of expertise which is why they are simple to use while maintaining their efficiency. You wouldn’t have to spend your time and efforts trying to understand how it works as sometimes it can happen with various technological tools; instead, you can quickly start using it from a get-go.
Adaptability: As previously mentioned, they are meant to be used by different businesses and industries that do not have the same requirements and which will not always face the same threats. For example, financial institutions will have a high risk of encountering loan fraud, but eCommerce businesses will not often have to deal with this type of fraud. At the same time, both of them need to deal with account takeover on occasion. There are so many different types of fraudulent activities, that it would take an unbelievable amount of time and resources to concentrate on all of them instead of the most probable ones. Fraud prevention solutions need to be customizable and able to adapt to various criteria and requirements different businesses will have. This is especially important when considering how fast the fraudsters can update their malicious activities to keep up with advancements in fraud prevention technology. This is where APIs shine and can provide the most flexible solution for fraud prevention.
Unfortunately, online fraud will not disappear any time soon; it will just get more and more evolved. Just like we are using technological advancements to our benefit, the fraudsters are doing the same. The more advanced technology is becoming, and our internet presence continues to grow, the easier it will be for fraudsters to update and conduct their malicious attacks. We have only two solutions when it comes to dealing with them, to fight against their attacks or to wait to become a target and risk everything you worked hard to gain. To ensure your business keeps growing, you know what solution you need to choose.