Financial fraud detection software offers the best solutions for the financial well-being of your company in real time. The goal is to protect transactions related to digital purchases, payments, and chargebacks. Financial fraud detection software uses a combination of software data analysis techniques and artificial intelligence (AI) based techniques.
Any suspect transactions are immediately flagged. Think credit card fraud, identity theft, forged bank checks, fraudulent banking, money laundering, cyber-attacks, or various other payment frauds. This is all seamlessly accomplished without interrupting valid customer transactions.
Who Needs Financial Fraud Detection Software?
For banks, fintech companies, credit card companies and other institutions that deal with significant numbers of transactions financial fraud detection software is mandatory. E-commerce businesses that sell online, no matter what size are frequent targets of fraud, but so are brick-and-mortar locations. The payment phase of transactions is often a source of fraud and requires fraud detection software.
The 2021 Identity Fraud Study by Javelin indicated that $58 billion was lost in 2020 due to fraud, The study found a significant uptick in identity fraud and scams. In fact, it was responsible for $43 billion of the total amount. This increase was attributed to the Covid-19 pandemic, new innovations by fraudsters to outsmart systems, and criminal tactics on both corporations and consumers.
Finding the best financial fraud detection software for your company not only guards a company’s revenue, but it also protects a brand’s reputation. It can also save you from costly noncompliance fines. Financial fraud detection software is built to be secure. It protects all customer and company data.
What are the 5 Best Financial Fraud Detection Software to consider in 2023? Read on.
1. Prove
One of the best ways companies can protect themselves against fraud is by securing their digital front doors. That is why the world’s leading banks, fintech, cryptocurrency, and other businesses turn to Prove as their choice for advanced identity verification solutions. Prove has over 1000 customers and is trusted by eight of the 10 top banks.
Fraudsters often start their criminal activities using stolen or synthetic identity information to open new accounts. Prove Pre-Fill® is an award-winning fraud prevention solution that works by verifying new consumer identities against authoritative sources.
Prove Pre-Fill® turns the traditional onboarding process on its head, making it easier and faster for the consumer to sign up. In a typical onboarding flow, the onus is on the consumer to fill out the necessary forms, and then the onboarding system verifies the information using authoritative sources in the background. Prove Pre-Fill® flips the script and auto-fills the forms using verified information first and then asks the consumer to simply confirm that the data is accurate before submitting it directly. As a result, consumers are able to sign up 79% faster while also reducing fraud by 75%.
2. Transaction Cloud
Transaction Cloud offers advanced fraud detection solutions. Specializing in payment processing, online selling, and digital products, Transaction Cloud uses advanced machine learning algorithms, real-time fraud databases, and cutting-edge detection techniques to keep your finances safe and secure. Here’s how.
Trained to detect patterns in fraudulent activities, advanced machine learning algorithms disable fraudsters immediately. Transaction Cloud’s real-time fraud database and detection techniques have access to a comprehensive list of lost and stolen cards. Not only does Transaction Cloud prevent fraudulent transactions from happening, but the software also notifies companies the moment suspect activity arises.
One key benefit Transaction Cloud offers is payment processing which is efficient. There is no need for manual reviews with the software’s automated fraud detection. It also encourages customer trust and brand loyalty by offering shoppers a safe and secure shopping experience.
Businesses selling digital products that have experienced repeated attacks by fraudsters will benefit from Transaction Cloud’s fraud detection solutions. By experiencing lower false positives, Transaction Cloud enables your company to both drive conversions and increase sales.
3. Tipalti
Tipalti is a payable automation solution used by over 2000 companies, across 190 countries. The goal of automating payments to payees is to accurately track them while saving company time and money. With Tipalti Detect℠ track data points including contact information, account numbers, emails, and payments through end-to-end supplier payments. Fraudulent patterns are easily identified, and fraudulent transactions are eliminated.
Tipalti Detect℠ has built-in risk tracking using past and current information. Blocked or suspended payees are compared with payees to see if there is a link, duplicate accounts with the same user information, or payment methods. If it suspects fraudulent activity Tipalti Detect℠ automatically contacts your company to quickly enable further investigations.
All records are logged and available to users who can generate detailed reports, gain insights and access the payee. This eliminates payouts to fraudsters and keeps your company finances safe. Proactively managing fraud before it happens, Tipalti Detect℠ has blocked more than 7,400 payees and has saved companies over $4 million in potential losses.
4. Alloy
Alloy helps banks and fintech avoid fraud risk with the company’s identity decisioning platform. One simple API platform brings together more than 85 data sources. This eliminates the need for multiple vendors, reducing complications in the workflow. The dashboard is completely customizable, so your most important data is available at your fingertips.
Verify identities and monitor transactions from onboarding new customers and throughout their entire customer journey for both B2C and B2B clients. Applications can be quickly verified with Alloy’s Know Your Customer (KYC) Know Your Business (KYB) and Anti-Money Laundering (AML). Place fraud checks with Ultimate Beneficial Owners (UBOs) and stakeholders. Alloy allows companies to save both time and money by eliminating the task of manual reviews.
5. SEON
SEON prides itself as financial fraud detection software that is effective but does not introduce friction into the customer experience. Set up the risk rules that will be most effective for your unique business. Pick from modules such as transaction fraud to multi-accounting.
Some of the SEON features include device fingerprinting used to understand how users connect to your website. Then, there is advanced data provided through customer phone numbers, email, and IP addresses and checks using more than 50 social media and online networks. The result reveals your customer identity and intentions.
In Conclusion
Reducing fraud through financial fraud detection software makes smart business sense. Not only will it protect your company’s financial health, but it will enable you to serve your customers while keeping them safe from fraud.
