Online Fraud Scoring API

Online fraud scoring API is a tool that helps businesses assess and prevent fraudulent activities that can lead to financial losses and reputation damage. Fraud scoring combines various factors to assign a fraud score to each transaction or customer, indicating the level of risk they pose. When a score is high, the transaction or user may trigger further investigation or outright rejection.

A good anti-fraud solution will use both a rules library and machine learning to score transactions. While rules libraries are a great way to get started, fraudsters evolve fast and create new patterns that can be hard for rules-only systems to detect. A well-designed machine learning algorithm can better account for these changes, resulting in an effective and efficient way to catch fraudsters.

Fraud scores are based on data that’s collected during and after a transaction, including:

These can include historical information such as whether or not the customer has been involved in previous fraudulent activity, if their email domain is on a blacklist, if they match a known criminal on a watchlist, or if they’re located in a country with a higher risk of fraud. Additionally, the system can analyze device fingerprints, geolocation, and IP reputation to find potential fraud indicators. This process is called “data enrichment.” SEON offers a fully transparent, human-readable fraud scoring engine that lets you view every rule and the full reasoning behind the score for each transaction, so you’re not at the mercy of an opaque black box system.