Anti-Fraud Technology

Anti-Fraud Technology

Frauds in the online financial environment are quite ominous. Therefore, financial institutions have to keep a fraud check through anti-fraud technology. It is not only a crucial part of a business but it is also important because it can hamper the business dealings of your company.

However, payment gateway services provide a safe and secure environment for payment processing. It is only possible if the PSP uses cutting-edge anti-fraud technology and tools to keep the fraudsters and scammers away.

Taking fraud into account is important and tackling it through a 4-fold technique is crucial for a business as well.

Set 1: The Process of Tokenization and Encryption

Every transaction has a set of sensitive information. It completes the payment and successfully transfers the funds. However, the sensitive information is out in the air for the criminals to attain information. To avoid that, the readable information is converted into non-readable, cryptic, and non-sensitive information to keep the data safe.

Tokenization is regarded as the practice of conversion of readable data into non-readable data. It keeps the fraudsters away from the payment processing channel. 1 Token for 1 Transaction makes it more secure for the revenue to shift from one bank to another bank.

Set 2: Locating the Consumer and the IP address

Geolocation allows the payment gateway to track both the location of the consumer and the device's IP address. It matches the information to collate the data.

At any instance that the data doesn't match each other, a flag is raised for that transaction as it is contradicting the locations and has a huge chance that the consumer is a fake one and tying a fraudulent activity.

Set 3: Through a Security Portal

A secure environment is a necessity for a transaction. A secure portal that is PCI-DSS Compliant and SSL certified keeps the sensitive data of the transaction safe. Under PCI compliance, no data of the consumers can be stored by the merchants.

A portal keeps the environment more secure than other ways of payment. It is easily managed and taken into account. Business records and POS cannot save the data when the payment is under the process of a PCI-compliant payment gateway.

Set 4: Reaching the consumers

Last but not least is reaching the consumers and telling them the best practices to take into account. The frauds and scams happen the most when a consumer loses their card details. There are more instances of fraud when a consumer tells the payment information to others.

Therefore reaching out to the consumers and telling them what are the best practices to keep the sensitive data of the credit cards safe is the best part of all the methods.

4 of these are the basic sets to keep the fraudulent activities away from your business.

What are the advanced cutting-edge techniques for fraud prevention?

  1. AVS
  2. It stands for Address Verification Services and is considered one of the most important tools in fraud protection. Checking the information of the pin code and the address with the payment details makes it certain if the transaction is valid through the source of billing address and the card-issuing address.

  3. CVV
  4. Checking the 'CVV' number of the credit or debit card is a crucial step for the completion of payment. If the CVV doesn't match then the transaction should be denied immediately. It is a great tool to keep the data secured and stop a fraudulent transaction from happening.

  5. Device ID
  6. Identification of a device is a crucial step forward to safe payment. It is obvious that a person pays through some specific devices such as their smartphones or commonly used computers. Therefore, if a new device is detected, the consumers should be instantly reported that a new device is in use. It will ask for permission and chase the fraudulent activities to a lower level.

  7. Scoring
  8. Fraud scores are generated on the account of various parameters. A fraud score determines the IP address, the pin code, AVS failures, using anonymous emails, etc. It creates a prerequisite for the merchants to check whether the consumer is a genuine one or not. This significantly drops the fraud rates for your business.

  9. Using a 3-D Secure Payment Gateway
  10. The third domain of protection keeps the security rates high for your business. The third layer of protection through a One Time Password creation allows a better dynamicity. As it involves the registered mobile to get the OTP, it is harder for the fraudsters to forge the OTP in that short period of time.

  11. Black List
  12. A great practice is to blacklist the consumers that show abnormal activity in the payment behavior. Taking time to fill in the black list keeps your business on the safer side. It needs time and patience as one wrong consumer can lead to one less transaction for your business. Therefore, a PSP such as ours provides a blacklist feature for your business.