The 3 Fundamentals of Modern Fraud Detection

Digital fraudsters are more motivated and better equipped than ever, which means organizations like yours must work harder to stay ahead of their tactics. Avoiding the dangers of account opening fraud requires modern fraud detection that allows you to catch the bad guys at the point of attack.

Although robust fraud detection tools are widely available and cutting-edge software proves extremely effective against fraud attempts, many businesses still fall victim to fraud rings, bot attacks, and other online hazards. Even if you think you’re protected, it pays to inspect and understand your system capabilities on a deeper level.

To secure growth for your organization and keep bad actors at bay, it’s important to know how your fraud detection tools work. With that in mind, check out these three fundamentals of modern fraud detection.

Tools That Go Beyond PII

Achieving your goals in the digital space means expanding your user base, but you can’t afford to simply let fraudsters stroll through the front door. That’s why identity verification is a prerequisite for authenticating new users. You can no longer rely upon the PII that was once used to discern between genuine customers and characters who pose a risk.

Because so much stolen, leaked, and compromised PII is available for purchase on the dark web, bad actors have everything they need to sneak past outdated PII-based ID verification systems and commit new account opening fraud. Instead of relying on PII for user authentication, make sure your company uses groundbreaking behavioral analytics software.

These innovative tools examine each user’s behavior as they interact with your site forms. Instead of examining static, potentially problematic PII, behavioral analytics software can help your business spot signs of risky behavior in real time.

The Power of the Crowd

Taking a hard look at one risky user isn’t enough to give you an idea of largescale activity across your entire site. Sophisticated fraud rings know this, and they can use this information to take advantage of unprepared organizations. They strike quickly, obtain staggering sums, and disappear without a trace, leaving people like you to pick up the pieces.

Leading fraud detection tools can catch fraud rings before they have a chance to perpetrate their schemes. Behavioral analytics tools can read and visualize crowd-level behavior. They examine the digital body language of all your users—the taps, swipes, and keystrokes they can’t hide with stolen PII—in real time, then deliver alerts when risky activity spikes.

The best fraud detection tools monitor digital identity at scale, and with each alert, they provide you with every associated user session ID. As a result, your step-up verification systems can intervene to stop bad actors in their tracks.

Early Identity Orchestration

Leading identity orchestration tools take the power of behavioral analytics to new heights, delivering smarter decisioning and session-level visualizations. By using behavior to prescreen a user’s validity, your organization can leverage early identity orchestration to enhance your new account fraud prevention and detection systems.

Identity orchestration is performed by sorting users into subgroups based on their behavior. By using behavioral analytics to categorize your users as genuine, neutral, or risky, leading fraud detection software can help your step-up verification measures target only the risky applicants, ensuring that your real customers can proceed unencumbered.

About NeuroID

Expanding your user base in the face of online threats can be intimidating. Still, you can’t afford to be deterred by bad actors. NeuroID offers groundbreaking technology and innovative tools to help you get the job done. With NeuroID, you can secure growth in the digital space without falling victim to fraudsters. Using the power of behavioral analytics, NeuroID reads a user’s digital body language as they interact with forms on your site to spot signs of fraud. ID Crowd Alert™ from NeuroID allows you to monitor digital identity at scale. It visualizes crowd-level behavior and provides alerts about fraud ring activity, bot attacks, and more. NeuroID also offers their ID Orchestrator™ tool for rapid, accurate identity orchestration. With NeuroID, you can navigate the digital identity crisis and stop would-be fraudsters at the point of attack.

Equip your organization with modern fraud detection tools from NeuroID at https://www.neuro-id.com/