Fraudsters are a real threat to businesses of any size, from small ecommerce operations to large financial institutions. Their crimes cost companies in the form of lost revenue, customers, refunds/chargebacks and compliance fines. Fortunately, many solutions exist to mitigate the risk and protect businesses from these fraudsters in various ways, including advanced technology like fraud detection APIs.
Fraud detection APIs fraud detection API documentation allow developers to code directly between two systems, avoiding the need to learn the ins and outs of a full fraud prevention engine. They also give developers the ability to automate certain processes and speed up manual review. This enables businesses to save on time and resources, as well as reduce costs.
Generally, fraud detection APIs provide real-time analysis of data, meaning that alerts are sent as soon as possible, often in under 1 second. This allows them to detect fraud in real-time, preventing the fraudster from committing the crime before it’s too late. Depending on the API, it may include multiple layers of protection and a wide range of different features such as IP reputation scoring, email verification, device identification and intelligent bot mitigation.
The best fraud detection APIs also offer a variety of additional functionality, such as reporting and dashboards to track key performance indicators in real-time. These tools are invaluable in helping businesses to identify suspicious transactions and patterns of behavior that could be indicative of fraudulent activity.
For example, SEON’s API uses a combination of machine learning algorithms and pre-trained models to help users uncover hidden patterns of fraud and prevent it before it occurs. This helps businesses to make decisions faster, reducing the chance of costly false declines and increasing revenue opportunities.
Another important feature of a fraud detection API is its data enrichment capability, which allows it to build a complete picture of a user’s risk by combining public information about them with internal business intelligence and other customer records. This can then be used to inform a risk score or for manual scrutiny during the approval process.
A key advantage of using a fraud detection API is that it’s usually cloud-based and offers limitless scalability. This means that it can handle huge volumes of simultaneous requests, such as thousands of user logins or signups at once. In fact, SEON’s fraud detection system delivers results in under 1 second, regardless of the volume of data processed.
Lastly, many fraud detection APIs are pay-as-you-go, removing the need to commit to long term contracts or rely on inflexible pricing schemes. For example, SEON’s APIs are paid for based on the number of API calls made, enabling you to scale your operations seamlessly as your business grows. This makes the ROI on a fraud detection API much faster than traditional software implementations that require you to pay upfront and then scale up over time. This flexibility can prove vital for businesses that need to manage their fraud detection systems in real-time, such as ecommerce companies.