How to choose the right fraud-management solutions for your business?

Can’t make up your mind about what factors to consider while choosing a fraud management solution for your business? Or are you having second thoughts about choosing the right fraud management solution? Whatever the case is, the best time to make this decision is NOW. If you delay this decision, you are most likely going to make your platform vulnerable to fraud and online threats. According to a report by the Association of Certified Fraud Examiners (ACFE) in 2022, an estimated $4.7 trillion is lost annually to online occupation fraud (Source). From a different perspective, a typical organization loses around 5% of its annual revenue to fraud each year. These numbers are evident that having a fraud management solution is a must for any organization to keep its platform safe. If you don’t have one or are having a hard time figuring out how to choose the right solution, this article will help you decide better.

In this article, we will explain what factors to consider when choosing a fraud management solution for your business:

How to choose the best fraud management solution

Here is the list of the factors to consider when choosing a fraud management solution for your organization:

Data Integrity & Data Privacy

Organizations should prioritize data integrity and privacy while considering a fraud management solution. Look out for solutions that do not store data from your platform. Here are 4 things to look out for:

- Data Storage: How the system saves or keeps data.
- Data Processing: How the system handles or manipulates data.
- Data Transmission: How the system sends or communicates data.
- Regular Data Compliance Audits: Determine if the system is regularly reviewed or audited to ensure it meets legal, regulatory, or industry standards.

Compatibility with your current business model

Compatibility of fraud management solutions with the current business model determines operational efficiency. Organizations must prefer solutions that can be easily integrated into the existing tech stack.

Real-Time Fraud Detection

An ideal fraud management system must have real-time fraud detection and alerting. As an example, fraudsters use GPS spoofers to manipulate location information & show their presence at a different location than the actual one. Real-time fraud detection solutions can detect malicious activity such as GPS spoofing, allowing you to investigate and potentially block suspicious devices. Organizations should consider solutions that can proactively detect fraudulent activity with continuous session monitoring and identify red flags like GPS spoofers, emulators, app cloning, and more without friction.

Scalability

When investing in a fraud management system, it's crucial to choose a solution that is both scalable and adaptable to meet the growing and changing needs of your business over time. Opting for a versatile solution that can address a wide range of use cases reduces the need for multiple third-party integrations, ensuring long-term effectiveness and minimizing the risk of obsolescence as your business evolves.

Machine learning and adaptability

Fraudsters are evolving day by day by creating new ways to commit fraud. An ideal fraud management system must be one step ahead of such new and unknown threats and should work on advanced machine learning algorithms that effectively adapt to new fraud patterns. This system regularly updates its models based on feedback from detected fraud cases, improving accuracy and reducing false positives over time.

Simple & Interactive User Interface

The addition of a new fraud management system should not be a burden on the organization. You must prefer solutions with an intuitive interface to reduce training time (of team members) and efficiently adapt to the workflow.

Legally compliant

Make sure the fraud solution you are considering complies with all relevant local and international laws (especially the General Data Protection Regulation, or GDPR).

Post Sales Support & Resources

The availability of proper post-sales support and resources (such as explainer videos and documentation) plays a significant role in determining the operational effectiveness of any fraud management solution. Make sure that your vendor does not leave you high and dry after you purchase the solution.

Ratings & Reviews

Call this old-fashioned, but the best way to check whether the fraud management system is really what it claims to be is through authentic online reviews and ratings. Take some time to visit websites such as Capterra, Trustpilot, G2, & TrustRadius, to understand the real effectiveness of the solution from its real users. You can also explore forums such as Reddit and Quora to get a clearer picture.

This wraps up our list of 10 factors to consider when choosing a fraud management solution for your business.

Conclusion

For any online platform, encountering fraud is inevitable. If you have not decided how to deal with it, it's time to act now before it's too late. Delays in addressing fraud can lead to greater financial losses, reputational damage, and increased difficulty in managing and mitigating fraud risks effectively.

Consider the 10 points above to determine which fraud management system best fits your organization's needs. As a robust solution that stops fraud at its roots, choose SHIELD as your ally in combating fraud on your online platform.