Fraud is a constant threat in the digital world, exploiting every opportunity to target businesses. In 2023, occurred through websites or apps, while 63% were linked to online ads or pop-ups, costing businesses billions each year. These statistics underscore how pervasive and damaging fraud can be in the digital landscape.
Why traditional fraud detection methods fall short
As a business, the impacts of fraud can be far-reaching. Beyond the immediate financial losses, fraud can erode customer trust, damage brand reputation, and increase operational costs to investigate and resolve incidents.
Traditional fraud detection methods often rely on rigid rules or simple pattern matching. These approaches may:
Generate high rates of false positives
Miss subtle patterns that indicate fraudulent behavior
React to fraud after it occurs, rather than preventing it
Failing to detect and mitigate fraud can put your entire organization at risk. That's why it's critical to leverage tools that can not only spot suspicious activity but also enable you to be proactive in your approach to fraud prevention.
How behavioral data transforms fraud detection
Behavioral data provides deep insights into how users interact with your brand online. By analyzing this data, businesses can distinguish between legitimate users and potential fraudsters based on actual user behaviors.
Leveraging behavioral data for fraud prevention
Behavioral data platforms empower you to not only detect fraud but also be proactive in mitigating it. With these tools, you can:
Identify suspicious patterns
Pinpointing suspicious and potentially fraudulent activity is the first step in mitigating fraud before it happens. A behavioral data platform will help you be proactive in your approach by enabling you to:
Detect potential SQL injections or cross-site scripting (XSS) attacks
Flag non-standard display dimensions that might indicate automated tools
Identify traffic from suspicious IP addresses
Monitor for extremely short session lengths or repeated actions
Enable proactive monitoring
By setting up customized alerts based on suspicious activity patterns, teams can ensure they never miss potential fraud happening in their digital channels. This proactive approach is crucial, as fraud can strike at any time and in unexpected ways.
Provide context during investigations
When suspicious activity is detected, behavioral data platforms allow you to:
Immediately locate and review specific user sessions
See exactly what happened in context
Understand the full scope of potentially fraudulent activity
Make informed, data-driven decisions about how to respond
Real-world impact: How one financial institution transformed fraud detection with Fullstory
One financial institution leveraged Fullstory to revamp its fraud detection processes completely. Previously, this organization’s teams struggled to validate customer fraud claims, leading to frustration and inefficiencies for the institution and its customers.
By implementing Fullstory, the organization revolutionized its fraud detection approach. Leveraging Fullstory's session replay functionality, they gained the ability to immediately locate and review relevant sessions using specific user data points. This allowed them to validate reported fraudulent activities swiftly.
The impact of the new approach was immediate and far-reaching. The organization could now quickly escalate confirmed fraud instances to the appropriate departments, dramatically improving customer response times and the ability to address issues promptly.
Taking their fraud prevention efforts a step further, the institution now relies on Fullstory's Segments, Metrics, and Dashboards to proactively identify and monitor potential fraud within their ecosystem. This shift from reactive to proactive fraud management has significantly enhanced their ability to protect the business and its customers.
Unlock the power of behavioral data to fight fraud with Fullstory
Leveraging Fullstory empowers you to validate fraud claims, uncover suspicious patterns, and respond swiftly to protect your business and customers. By integrating Fullstory into your fraud detection workflows, you can:
Quickly locate and review session replays associated with fraudulent activity
Proactively identify and monitor for emerging fraud threats using customizable analyses
Improve responsiveness and customer experience when addressing fraud claims
Build a more secure digital experience for your users by staying one step ahead of fraudsters
Don't let fraud catch you off guard. Request a demo today to learn how Fullstory can help you safeguard your business and maintain the trust of your customers.
