A Better Way of Addressing Online Fraud

September 20, 2017


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Online fraud remains a real problem, with businesses worldwide losing billions of dollars each year to criminals. While fraud detection can be challenging, in many cases, the state of the art is advancing steadily. As a new case study online at www.siftscience.com/case-studies/seoclerks shows, applying the right automated algorithms, filters, and tests can root out and stop a huge range of potentially fraudulent transactions.

Certain types of online businesses are inherently more susceptible to fraud than others. While criminals might not be able to do much with a business that ships valuable products which require a signature from a specified recipient, service oriented companies tend to be more vulnerable. Because the value provided by a given service cannot typically be retrieved if fraud is later discovered, criminals who can sneak a fraudulent payment through typically end up gaining in the process.

As a result, businesses and marketplaces that provide or facilitate the provision of online services have to be especially vigilant in guarding against fraud. Failing to be take an active, effective stance against crimes of this kind will generally mean not only failing prey to the usual level of fraud, but also facing more and more of it as word spreads. This can easily snowball into an issue of monumental proportions, with some companies going out of business entirely after becoming overly prominent targets for fraudsters.

As the case study above shows, however, there are actually effective ways of fighting back. While few companies will have the specialized capabilities needed to prevent fraud entirely on their own, there are now sources of assistance that are ready to lend a hand. By inserting themselves into the payment process upon request, companies like these can vet proposed transactions and immediately highlight those that are most likely to be fraudulent.

Most importantly, of course, this means that fraud becomes much less of an immediate issue. It also typically means that the client business can focus more intently and confidently on its core mission, instead of needing always to be distracted by the prospect of fraud. That can end up being what it takes not only to overcome fraud focused criminals but to do the same to competitors.