Fraud detection is often seen as a numbers game – a careful analysis of data points to uncover the patterns that don’t fit. At Truevo, we know the devil is in the details and these characteristics can reveal trends of suspicious activity. But there’s more to it than that.
While many financial organisations rely on these data indicators, we believe true fraud detection goes beyond an algorithm checklist. More than monitoring anomalies, there must be a closer relationship with each business to understand individual context. It’s as much about the human element as it is about technology, combining data analysis with a personal approach.
In this blog, we’ll dive into the key factors that help us identify fraud, and explore how our focus on close client relationships makes all the difference.
Key Characteristics of Fraud Detection
Fraud detection often hinges on several key factors and how they interact, revealing hidden patterns of suspicious behaviour, including:
- Transaction Time – not just a timestamp: If a business experiences a sudden flurry of transactions during the early hours, we look at the broader picture – has this occurred before? Is this typical for this merchant’s industry? By layering time analysis with historical data and context, anomalies are quickly identified.
- Location – more than a dot on a map: We track beyond the location to ascertain where, how often, and in combination with what other factors. A transaction in London followed by another in Dubai could be suspicious if there’s no travel pattern to support it. By blending location data with previous cardholder movements and known fraud hotspots, we can stop fraudulent behaviour before it escalates.
- Spending amount – context is key: Our system looks at the size of transactions in the broader context of the cardholder’s behaviour. Have they made similar purchases before? Is the timing and location in line with their spending habits? By combining transaction value with historical spending data and market insights, we can flag inconsistencies that signal fraud, even when the amount seems typical at first glance.
- Card usage – behavioural clues: Many fraudsters will test a card with small transactions before making larger purchases. We track these micro-activities to detect patterns of ‘card testing’ early, preventing more substantial fraud before it happens. Instead of focusing solely on isolated card usage, we look at behaviour over time – spotting inconsistencies or irregularities that suggest a card may be compromised.
These are fundamental characteristics that any financial organisation monitors to detect and prevent fraud. But at Truevo, we believe it’s not enough to simply monitor data and flag anomalies. Preventing fraud requires more than just algorithms – it needs a personal, human touch.
Combining Technology with a Human Touch
At Truevo, we believe that no business is the same. By developing close relationships with our clients, we gain a deep understanding of the unique payment profiles and patterns of each business. This allows us to spot irregularities that an automated system might miss – because no algorithm can fully account for the nuances of real-world customer behaviour.
For example, a sudden increase in late-night transactions might be flagged as suspicious by a generic system. But being familiar with the client’s business we might know that they recently expanded their operations into new time zones. That’s the human touch we bring to the table, combining our tech with contextual understanding to assess whether the change is legitimate or fraudulent.
Reducing Penalties and Chargebacks
Fraud not only causes financial loss but can also result in penalties and chargebacks for businesses. By working closely with our clients, we aim to reduce both. We dedicate time to understanding every client’s specific challenges, ensuring that each solution we provide helps reduce the risk of fraud, minimise penalties, and lower the likelihood of chargebacks.
This human-centred, problem-solving approach empowers our clients to focus on their core business operations, knowing that their payment processes are secure and backed by a team that is as invested in their success as they are.
Maximising Cash Flow, Minimising Risk
Fraud prevention isn’t just about stopping bad actors – it’s about safeguarding businesses’ ability to grow and thrive. At Truevo, we make it our mission to reduce the impact of fraudulent activity on merchants, enabling them to maintain and even improve their cash flow. Every solution we offer is designed to protect our clients’ revenue streams while mitigating risk, ensuring that they remain competitive in an increasingly complex digital marketplace.
Contact our team to find out more about how we can help you modernise your payment processes and reduce the risk of fraud.
