By using artificial intelligence (AI), machine learning and real-time analyses, suspicious transactions can be identified at an early stage and financial losses avoided.
how does fraud detection work?
Modern fraud detection software analyses large amounts of data in real time and recognises patterns that indicate fraud attempts, anomalies or suspicious behaviour. Common methods include
- Rule-based analyses: predefined rules identify conspicuous activities
- Machine learning algorithms: Self-learning systems adapt to new fraud patterns.
- Behavioural analyses: Unusual transactions or user actions are detected.
- Real-time monitoring: Automatic alerts for suspicious transactions.
Why is fraud prevention important?
Companies in e-commerce, finance, insurance and other digital business models are increasingly threatened by cybercrime, identity theft and payment defaults. An effective fraud detection solution helps to reduce financial losses, minimise fraud risks, protect customer data and business processes and ensure compliance with legal requirements (e.g. GDPR, PSD2).
FAQ on fraud detection
What is a fraud check?
A fraud check is a process for detecting and preventing fraudulent activities. It examines transactions and activities for signs of fraud. The aim is to avoid financial losses and protect the integrity of a company.
How high is the fraud detection rate?
The fraud detection rate varies depending on the technologies and methods used. Modern fraud detection systems based on artificial intelligence (AI) and machine learning can achieve detection rates of up to 94%. By exchanging data in systems used in shared networks, companies can even increase their detection rate many times over.
who uses fraud detection?
Fraud detection is used by a variety of industries and organizations to protect against financial loss and fraudulent activity. These include:
- Banks and financial institutions: Monitor transactions and account activity.
- E-commerce companies: Protect online payments and customer accounts.
- Insurance companies: Detect fraudulent claims.
- Telecommunications companies: Monitor calls and data traffic.
- Healthcare: Prevent billing fraud and abuse of services.
These fraud detection systems help to strengthen customer confidence and ensure the integrity of services.