In a mobile-first world where most services are now primarily accessed through mobile apps, the attack surface for fraudsters has widened. Fraudsters are also getting more sophisticated. They’re able to use malicious tools to bypass safety and anti-fraud measures, making it difficult for companies to differentiate between fraudsters and genuine users.
To make things worse, many businesses' approaches to combating fraud are off the mark. Here are the top three tips for getting it right:
- Get real-time intelligence throughout the entire user journey. Many companies screen for fraud at specific checkpoints, e.g., at the point of account registration, or when payment is being made. However, fraudsters have learned to circumvent this by deploying malicious tools and attacks at other points within the session. Businesses need to be able to monitor the entire user journey to see the exact moment users start exhibiting malicious behavior and stop fraud even before transactions are made.
- Get to the root of fraud. Many fraud prevention strategies take a reactive approach to fraud by banning fraudsters after the fraudulent activity has already occurred. However, fraudsters can create new accounts and use malicious tools to bypass security measures; for example, VPNs are used to bypass IP address bans. To effectively stop fraud, companies need to get to the root of the issue. They need to leverage technologies that can identify the devices being used to create fake accounts. It is also essential that these technologies are able to detect the use of tools and apps typically associated with fraud to paint a clearer picture of the risks.
- Leverage global fraud intelligence. With fraudsters constantly changing their attack patterns, fraud prevention teams can no longer rely solely on the company’s existing data to stop future attacks. By tapping into global threat intelligence, companies can protect themselves from new and unknown fraud threats - even ones that have never been seen in their industry or market.
By getting these three things right, companies will be able to get a complete picture of risks on their platforms - from devices to the networks they’re on, and at every point on the user journey. This allows them to gather intelligence about where malicious actors may be hiding and what tricks they’re using. Every business is unique, with different priorities and customer journeys, so it's essential to use data in a way that works for you.
For example, inDrive is one of the fastest-growing online ride-hailing services in the world. With operations in over 700 cities across 47 countries, hundreds of millions of drivers and passengers use the service to get from point A to B. However, ride-hailing platforms are plagued with fraud – from drivers using GPS spoofing to induce fare surges to customers abusing promotions by creating fake accounts. To take proactive action against fraud groups, inDrive uses device intelligence to identify the devices used to create multiple accounts. The company proactively deals with fake accounts, with a resulting genuine user rate of 99.77%.
At the same time, customers also play a crucial role in choosing where to shop - and the onus is on businesses to give consumers the assurance that their platform is free from fraud. This can take the form of social media posts, educational content, or even relevant industry certifications. When shoppers, partners, and investors know that they can trust a site, they are more likely to support its growth.
Combating fraud in today's world requires a proactive and multi-faceted approach. Businesses must gain insights about where the problems lie exclusive to their business so they can make decisions based on their needs. By evolving their fraud prevention strategies, companies are able to stop fraud, build trust and drive growth.
