Last Updated on March 25, 2021 by Arina
6 Things To Considered When Choosing Best Fraud Detection Software
A host of new and evolving cybersecurity threats has invaded the eCommerce industry. Modern-day cyber attacks use intelligent tools that have placed the organization’s data and assets at constant risk. As the threat horizon is expanding, companies need to integrate advanced security practices to protect sensitive and confidential data.
E-commerce security threats are causing havoc in online businesses. Cybercriminals target e-commerce store admins, users, and employees using different malicious techniques. Financial frauds, phishing, spamming, DOS & DDoS (Distributed Denial of Service) attacks, malware, and e-Skimming are common online fraud attempts in the eCommerce industry that can defraud digital businesses.
eCommerce frauds increased by 45% in 2017. Research studies reveal that the rate of credit card chargebacks is rising by 20% each year. The other common types of e-commerce fraud are identity theft (71%), phishing (66%), and account theft (63%). As the sophistication of fraud attempts is growing significantly, it has become crucial for organizations to incorporate fraud detection software into eCommerce platforms to prevent fraudulent activities. The best eCommerce fraud prevention software has intelligent machine capabilities to detect illegitimate and high-risk transactions and counter risk in real-time.
Integrating fraud prevention software into e-businesses helps enterprises prevent cybercriminals from accessing any confidential data to make unauthorized purchases or manipulate customers. It comprehensively protects the customer’s information. The software monitors user activity to provide end-to-end fraud management. How do you choose the best Fraud Detection Software for your business? Here are six essential factors you should consider before making a purchase.
Real-Time Transaction Screening And Review Automation
Ensure that you choose Fraud detection software that incorporates AI and ML-based features. Such business intelligence systems use predictive analytics tools to process data regularly and learn about data patterns. Analysis of large sets enables the software to detect anomalies in real-time. Select a fraud detection software that can screen transactions and customers at regular intervals. An AI-based software enhances the process of securing IP addresses, maintaining data ownership, and protecting data insights.
Besides predictive analytics, automation is a critical intelligence tool. Automation of screening and review processes enables organizations to mitigate risks in e-businesses. Automation reduces manual effort, and the machine can detect, investigate and remediate cyberthreats with or without human intervention. It can identify incoming threats and prioritize alerts in real-time.
Customer service tools are essential to fraud detection software. Choose software that can improve your customer retention capacity by integrating support tools for your customers. It can incorporate virtual assistants, chatbots, and other support services to provide 24/7 assistance to customers to support your customers. Reduced response time helps to improve customer loyalty.
Compliance With Security Standards
Your supplier should provide you with software that is compliant with your organization’s requirements for data security. The software should follow data compliance regulations to ensure the safety of sensitive digital assets it accesses, including personally identifiable information and financial details, and guard it against loss, theft, and misuse.
Businesses that accept card payments need to make sure that the software solution meets the PCI Standard. Ask your vendor to supply the necessary documentation, which indicates the product’s compliance support.
Real-Time Operations Tracking And Reporting
Check if your fraud detection software integrates a dashboard for managing and organizing customer’s data. It can act as a centralized platform that enterprises and customers can access to monitor activities, such as order status, payment details, and location.
Integration And Deployment
What is the average deployment time required by the software? Choose fraud detection software that can be deployed quickly. Some websites have discussion sections in which the users input their feedbacks about the software. Check the reviews to learn more about the software’s pros and cons, deployment pitfalls, and common issues. Ask your supplier about the integration process to ensure that the software is compatible with your eCommerce platform.
Approval Rates And False-Positive Handling
Ask your provider to elaborate on how the software solution will validate the transactions. You need to understand how the software handles cases of legitimate false declines from customers. False declines occur when transactions are incorrectly rejected. Choose fraud detection software that scans each transaction in a broad context to reduce false positives.
False positives can sharply decrease the revenue in the e-commerce business. It can significantly decrease customer value and increase reputational damage. Robust fraud detection helps to minimize false declines. Fraud detection software should increase the likelihood of rejecting legitimate transactions and increase the ability to block fraudulent ones.
To choose the best Fraud Detection Software, ensure that the solution integrates the features mentioned above. It should be compliant with data privacy standards and security policies, incorporate customer service tools, and use intelligent tools to detect potential risks in real-time.