Be it traditional or online businesses, it is important to safeguard your business interests. Ranging from financial to healthcare claims, pharmaceutical to product and insurance warranty claims, there is a need to identify and monitor all types of frauds. Every organization, be it small or big should make it their priority to fraud analytics and should not take it lightly.
Besides monetary loss, the company will also suffer from brand reputation damage. Hence, you need to take proactive steps to identify as well as investigate active threats.
Fraud analytics and the impact of fraud on small businesses
The breach in data is likely to impede workflow, impact customer trust in your business, and stall development. There is also the risk of facing legal charges and penalties. Victims are generally not categorized and are targeted by fraudsters. Fraudulent attacks may outweigh immensely the cost involved in adopting fraud prevention solutions. Hence, you should take immediate steps to avoid such unwanted circumstances and to protect your business interests.
Choosing the best solution
When seeking a Business Intelligence and fraud prevention program, do manage to select the very best and most appropriate solutions! Many assume that robust fraud prevention methods can be complicated and expensive. Small businesses generally use two common fraud prevention methods that are found to be insufficient.
1. 3D secure:
During the transaction, it verifies the cardholder’s identity. Transaction responsibility tends to shift to the bank from the business. It offers a single security layer and is to be implemented only as a multi-layer or instead of a sole protection method.
2. Manual review:
About 98.5% of reviewed orders get accepted. However, manual reviews in large amounts are considered to be time-consuming. Drawing needlessly out the ordering process is likely to disrupt user experience.
A Better Solution
You need to use Data analytics technology and combine it with a better fraud prevention program. A powerful fraud analytics management program can provide your customers with a setup as well as a seamless purchase experience. Moreover, your business can identify better all fraudulent transactions.
1. Easy setup combined with pre-defined fraud rules:
It is easy to establish such settings quickly. You can maintain full control of all risk tolerances.
2. Reduce costs:
Fraud attacks can impact your operational budget significantly. Implementing Data analytics technology can help avoid declined authorization and unnecessary chargebacks.
3. Precise fraud detection:
Advanced machine learning helps harness its power and validate transactions within milliseconds. Thus, genuine transactions can take place. No interruption is experienced while the order acceptance rate is improved significantly.
4. Well-informed decisions:
It is designed to offer greater efficiency and ease. The simplified dashboard provides all the essential information required to reject all flagged transactions or accept proper ones.
It is high time that you took adequate steps to protect your online businesses from various fraudulent activities. Also, it is your responsibility to safeguard your customers’ interests and ensure they do not fall victim to fraudsters. According to research conducted, the typical organization tends to lose revenue of about 5% every year resulting from fraudulent activities.
When the study is made globally, it amounts to about a whopping $7.3 trillion. It further revealed that fraud-related median loss was about $145,000. Approximately, 22% of cases with losses amounted to a minimum of $1 million.
Such cases when analyzed carefully using Business Intelligence programs show how fraud gets committed, and how it needs to be identified. It also helps understand what organizations should undertake to diminish their vulnerability towards such risks.
When effective fraud analytics solutions are concerned, ROI is rather worthwhile for the business. Fraud restitution, recovery, and prevention offer immediate savings. Using fraud solutions, your organization can derive better insight into ensuring the implementation of long-term strategic planning.