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Ultimate payment fraud understanding and prevention guide

1 minute read
ultimate-payment

Explore the ultimate guide to understanding and preventing payment fraud. As online transaction volumes surge, retailers face increased threats from sophisticated fraudsters using advanced AI technologies. Learn about common online payment frauds, such as Account Takeover, BIN Attacks, Chargeback Fraud, and more. Discover the importance of a cross-functional team and find the right balance between stringent safeguards and customer experience. Akurateco's comprehensive risk management system is highlighted, providing insights into its advanced approach to detecting and preventing fraudulent transactions. Safeguard your business against payment fraud with Akurateco's customized payment fraud protection solutions.

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Payment fraud is rising. Most retailers report an increase in online payment fraud against their firms and consumers.

Many variables cause this tendency. First, internet transaction volumes have increased in recent years. This growth has given bad actors additional chances to commit fraud against organizations, particularly those without proper fraud protection. Economic hardship emboldens fraudsters to seek higher-value, higher-risk chances. It also inspires friendly fraud utilizing chargebacks.

The biggest trend is recent technical advances, including powerful AI technologies. Fraudsters may use these technologies to launch more sophisticated and widespread assaults.

Meaning of payment fraud

Any person or group commits payment fraud when they perform unlawful transactions or receive money, products, or services illegally.

The use of a stolen card for purchases might cause physical payment fraud. In this article, we’ll discuss how it may happen online.

Common online payment frauds

Merchants encounter these payment fraud types most often. Payment fraud changes. Criminals create new techniques to perpetrate online payment fraud.

  • Account Takeover
  • BIN Attacks
  • Chargeback Fraud
  • Refund, coupon, discount abuse
  • Fraudulent Cards
  • Synthetic ID fraud
  • Triangulation plans

How to stop payment fraud?

Fighting fraud requires more than just preventing it. It requires precise balance. Stringent safeguards may stop most fraud attempts, but they may dissuade real consumers, resulting in costs greater than the fraud losses.

However, leniency has its drawbacks. Penalties, higher processing costs, reputation harm, and payment system suspension of card payment acceptance might follow.

A cross-functional team including fraud, payments, go-to-market, risk, finance, and leadership specialists is crucial. This committee must identify the business’s risk tolerance and spectrum position together. It should meet a few times a year to verify alignment with corporate objectives.

Next, the organization must equip itself to detect fraud and apply its payment fraud prevention plan. There are many choices.

A customized payment fraud protection solution may be built in-house. This might provide a customized set of tools for the firm, but development and maintenance expenses are high. In alternative, firms may use market-specific fraud prevention techniques. These tools fall into two categories:

  1. PSP fraud prevention tools:
  2. Specialized third-party fraud prevention tools:

How does Akurateco prevent payment fraud?

Akurateco’s comprehensive risk management system identifies, analyzes, and prevents fraudulent transactions using internal and external scoring models.

Using Akurateco to avoid payment fraud:

  • Correctly detecting fraudulent transactions
  • Not processing such transactions
  • Regular transaction success percentage stays stable as the right transactions get through.
  • A handy analytical dashboard showing failure causes
  • Allow analytics-based decision-making

Their services revolve around an advanced approach to managing payment fraud that works in tandem with your current infrastructure. Akurateco provides not only a strong basis for fighting fraudulent activities in addition to real-time information and proactive monitoring but also customized payment software for various business requirements https://akurateco.com/payments-orchestration-platfrom. If you are worried about payment fraud in your ecosystem, you can rest easy since Akurateco is on your side.

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