Fraud check API is a powerful fraud detection tool that helps you stop fraudulent users, suspicious payments, and chargebacks before they negatively impact your business. It is a critical feature for businesses in the eCommerce and financial industry. These crimes are often perpetrated by bad actors looking to steal from ecommerce websites, credit card details or committing triangulation fraud and they can cost you significant losses in customer acquisition and refunds/chargebacks.
Detecting fraud in real time is challenging and requires a system that can ingest large volumes of data quickly, process it in real-time, and accurately identify fraudsters without causing false positives. This is why you need a fraud detection API that can process large numbers of real-time transactions, logins or sign ups at once, and provide results to your systems in seconds.
When to Use a Fraud Prevention API
A fraud prevention API can be used at any point during the user journey: signing up for an account, making a payment, creating a checkout session or updating billing details. It can also be used to assess risks of specific user behaviour patterns that may indicate potential fraud.
The best fraud check API provides a number of different ways to validate and verify information gathered from the user. For example, it can help screen for bots by detecting fake IP addresses, proxy or VPN connections and by performing user and device fingerprinting. It can also be used to check email address validity based on string analysis, find out who owns a phone number based on reverse telephone lookup, check if it is linked to public social media accounts like LinkedIn or Facebook and more.