Fraud Detection API

An intelligent fraud detection API combines multiple data analysis methods to assess the trustworthiness of users and transactions. This allows businesses to build a comprehensive picture of each individual, making it easy to identify and stop bad actors before they can damage their reputation or cause financial loss. In a digital world, this is more important than ever, with reputation damage being a real threat to the bottom line for businesses of all sizes.

Fraud detection APIs allow managers to create their own rules and lookups, based on their business needs. The requirements of a small online store will be very different to those of a large online casino, for example. This extensive customisation makes it possible to reduce the amount of manual work for teams, allowing them to spend more time with customers and increasing customer satisfaction.

Some of the most common types of fraud include:

Creating a digital footprint with ID verification – each user has a unique set of characteristics that define them such as IP address, device ID, location, operating system, and browser. This helps detect and prevent fake accounts from fraudulently accessing your services, bonus offers or loyalty programs.

Sign up or login data – the ability to verify user identity is essential for businesses in all industries, particularly those that require a high level of trust and security. This includes e-commerce, gaming, banking, insurance and healthcare.

Data matching – using algorithms or programmed loops to examine a series of fraud variables and find connections between them can help detect patterns of fraudulent behavior and alert you when something is amiss. This can be a helpful way to spot patterns that are unusual for your business, such as a user making a lot of purchases at once or requesting rush deliveries that can be difficult to fulfil legitimately.

Suspicious activity reporting – the process of filing reports on potentially suspicious transactions is a legal requirement for businesses in certain industries, such as gambling or money laundering. The best fraud detection APIs offer an SAR module that can automatically flag and investigate suspicious transactions, ensuring compliance with regulatory requirements.

A robust fraud detection solution can give you the confidence to grow your business without sacrificing customer experience. However, it is worth remembering that poorly configured systems can produce a high number of false positives, which can result in a large volume of manual processing.

With the right fraud prevention tools, you can take back control of your business by stopping fraudsters at every stage of the payment process. The Signifyd Fraud Protection API evaluates orders at checkout and delivers instant decisions backed by a 100% financial guarantee against fraud on all approved orders, enabling you to shift liability, trust customers and grow fearlessly.