In today’s fast-paced business world, fraud prevention is one of the most critical components to a successful online presence. However, it can be challenging to balance the need for robust security measures with the need for speed and user experience across all of your digital platforms. That’s where API fraud detection comes in – a way to detect fraudulent transactions and suspicious behavior before it has an impact on your bottom line.
Whether you’re an ecommerce platform, SaaS company or gaming platform, API fraud detection is a necessity to mitigate risk in real-time and protect your business from fraudsters. It can help prevent fraudulent transactions, bad users, account takeovers (ATO) and bots from harming your business, while also improving customer experience.
To do this, fraud detection uses a variety of methods to flag potentially fraudulent activities and trigger alerts for human review. These include IP tracing, device fingerprinting, behavioral analysis, social media checks, payment verification and more. The best APIs for fraud detection use these tools in combination to detect patterns that a single tool might miss.
How long does it take to set up a fraud detection API?
Depending on the product you choose, it can be as quick as 24 hours to start monitoring and detecting fraud. Most solutions offer a trial period so you can get a feel for the software before making a decision.
The key to a successful fraud prevention solution is to be flexible and work with multiple APIs in tandem. Using a single tool alone is likely to result in missed opportunities and false positives. Ultimately, the best solutions are tailored to the needs of each specific merchant.
For example, if a credit card is being used in an unfamiliar location or the name on file doesn’t match the name on the card, this can be indicative of a stolen card or hijacked details. In such cases, the transaction should be declined.
Finix’s Fraud Detection API helps businesses minimize chargeback losses for their ecommerce sites by identifying and blocking potential fraud. It leverages the power of machine learning to analyse data in real-time and detect patterns that humans might miss. Its API allows developers to run SQL queries and automate the process of delivering results as HTTP Endpoints. The API is scalable and works in real-time to ensure that the most recent data is always available. Its unified data ingestion, storage, and processing infrastructure makes it easy for developers to build real-time analytics applications such as fraud detection. It also gives them an intuitive SQL-based development environment to ship faster and scale without the burden of maintaining a complex infrastructure.