A fraud detection tool is a software application or system designed to help identify and prevent fraudulent activities. Used across various industries—such as financial services, ecommerce, hospitality, insurance and the public sector—these solutions are a part of a robust fraud prevention strategy. They can automatically analyze and detect suspicious or abnormal patterns of behavior that may indicate fraud, thereby better protecting businesses and individuals from financial and reputational losses.
Fraud detection tools typically collect and analyze a large volume of data — including identity, device, transaction records, user behavior and historical data — to evaluate risk and distinguish legitimate consumers from fraudsters. Orchestrating identity, device and behavioral insights helps organizations better secure trust across channels and deliver smoother experiences for consumers.
Identity insights: Help expose fraud risks by more confidently verifying consumer identities against robust credit, non-credit and digital data sources.
Digital insights: Better determine the riskiness of anonymous users in real time with insights into device recognition, context and behaviors.
Omnichannel authentication: Provide smoother and more secure experiences across call center and digital channels. Leverage phone and device data to help separate legitimate consumer interactions from potentially risky ones to mitigate account takeover fraud.
Fraud analytics: Streamline transactions, help detect hidden connections and proactively monitor threats with custom- and purpose-built models, superior data and analytic expertise.
Fraud detection tools play a crucial role in helping protect organizations and customers from financial and reputational harm arising from fraud. While fraud detection tools are used throughout the customer lifecycle, three key areas of risk include: