Eight features and characteristics to keep in mind when selecting a fraud detection software
People are moving towards cashless payments more and more, and paying paper currency out of physical wallets is kind of turning out to be a thing of the past. People have started showing an inclination towards cashless payments at restaurants, grocery stores, fast food joints, and who could forget online shopping as well.
Ecommerce has turned out to be the new best thing, as quoted by numerous resources. In just 2021, almost 2.14 billion people are expected to shop online.
This growing demand for cashless e-payments has not only made everyone’s life easier but also exposed vulnerable consumers to e-commerce fraud and identity theft. More than 60% of businesses have experienced some sort of e-commerce fraud in the past 12 months.
Yet having no control over the operation protocols would mean that businesses are losing a lot of revenue via fraudulent activity. The easiest answer to this is to buy a top eCommerce fraud prevention software.
So Many Top Ecommerce Fraud Prevention Software, How to Choose?
Before thinking about the brand of fraud protection software you’ll go for, it would behoove you to read about their features and characteristics so that you end up selecting the best possible software for you or your business.
Here are eight features you can consider:
Level of Automation
This step is totally up to the business that is going to use this software for detecting fraudulent activity. If you’re more inclined towards completely automating the entire process, still you’ll need a team of specialists to analyze the threats manually. This step teaches the algorithm on how to better detect fraudulent activities.
Self-Learning Capacity of the Anti-Fraud Algorithm
Fraud detection has to keep up with the approaches of frauds, which they frequently change to find some loopholes in the fraud detecting algorithm. Therefore, the system should have the capacity to evolve and learn from accumulated data to detect any irregularities that can be overlooked. The system should be so responsive that it can detect learned fraudulent behavior and new methods of fraudulent anomalies.
Layers of Protection
The VP analyst of Gartner Group, Avivah Litan, suggests a 5-layered approach to the detection of fraudulent activities and how these can be prevented. Each of these levels discusses the specific customer type and activity.
· 1st level
o This is known as endpoint centric approach, and take into account user verification, authentication of the device they are using, and their geolocation is also tagged
· 2nd level
o This approach is navigation centric. Here the customer logging in a particular session is tracked for any abnormal activities
· 3rd level
o It is called a channel-centric approach; analysis of the entire account of the customer is analyzed for any abnormal behavior
· 4th level
o It is called the cross-channel where the customer is monitored across various channels, including bank transactions
· 5th level
o This approach is regarding entity link analysis and is the process of linking the behavior of various users or their transactions performed
Ease of deployment and integration into your existing system
Read about the top eCommerce fraud prevention software and then visit their comment section and review pages. This will give you an idea of the deployment time of the product. Apart from that, the users will let you know about the advantages and disadvantages of owning that protection system.
Now comes the tricky part. What if the package you have selected can’t be integrated with your existing system? So you should keep this factor in your mind as well.
Settling on Cost-Effective Packages Should Be Your Priority
Various packages with different price points will be offered to you once you start looking for an the anti-fraud system actively. Some vendors even have flexible pricing models that can be molded according to the size of the business and your projected worth.
The Software Should Comply With Your Security Standards
After selecting an option that is appropriately priced according to your needs, you should shortlist the options that offer you security and services that comply with your security standards.
Handling of False Positives
It is always your duty to understand how a solution is outputted by your fraud protection system and the way your vendor and their software team(s) handle the false positives.
An Active Customer Support System is a Must
In this regard, active and interactable customer support is also a must. What if you end up in a tight spot and immediately need customer support? That’s why you should go for the services that claim good technical customer support.
Apart from this, you should also think of whether your chosen security measure is extended to mobile devices and not just desktops.
Businesses strive to meet the demands of their customers, and that translates to these organizations asking a lot out of the software they use to facilitate financial transactions, authentication, payment approval, blacklisting of certain consumers based on their domains or IPs, and prompt delivery of goods to the genuine customer.
Therefore, numerous considerations have to be made, and when it comes to choosing the best possible security software for you or your business, keep in mind the features you would want the most.
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