Swipe Right on Fraud Detection: 4 Key Elements You Should Be Evaluating

According to the 2024 AFP Payments Fraud and Control Survey Report, 80% of organizations were victims of payments fraud attacks/attempts in 2023, a 15-percentage point increase over the previous year. It’s like going on a date only to find out your match is a catfish!

Even more alarming – 30% of these organizations failed to recover their lost funds. As fraudsters continue to refine their tactics, it is imperative for organizations to have a robust fraud detection system in place.

Assessing Connections: The Foundation of Fraud Detection

So, how can organizations protect themselves from these fraudsters? It’s all about assessing connections – the foundation of fraud detection, much like evaluating potential matches in the online dating world. Below, we will discuss 4 key elements you should be assessing for optimal fraud prevention.

1. Bank Account

Think of bank accounts as dating profiles. You want to validate a bank account before making a transaction much like you would be sure your date isn’t a serial killer before going out with them.

• Have they been around the block or are they brand new?
• Is there consistent activity, or do they suddenly go off the grid?
• And bank accounts linked to multiple Social Security Numbers (SSN)? That’s a definite red flag!

2. Email

Have you ever received a message from a stranger who claims to know you – creepy, right? By assessing email domains, legitimacy, and the frequency of changes linked to SSNs, organizations can sniff out suspicious activity and avoid falling victim to Business Email Compromise (BEC) scams.

3. Phone Numbers

Just like exchanging phone numbers on a dating app, verifying phone numbers is crucial for fraud detection. If someone’s juggling more numbers than a phone book, it might be time to hit the block button.

4. Social Security Numbers

Imagine finding out your date has multiple identities – talk about a major red flag! Similarly, monitoring the frequency of SSNs linked to different types of information can help organizations detect patterns indicative of fraudulent behavior.

By understanding these connections and implementing the right checks, organizations can reduce the risks associated with online transactions and safeguard their financial integrity. So, if you’re ready to swipe right on security and swipe left on fraudsters, let ValidiFI can be your wingman in the fight against payment fraud.

ValidiFI, a leading provider of predictive bank account and payment intelligence, provides actionable insights that can help detect fraud in real time. Leveraging unique attributes within our fraud network, such as phone carrier detection and email domain verification, we offer unparalleled precision in fraud assessment.

Learn more about our vFraud solution or contact us to get started.