Advanced Payment Fraud Prevention

Protect your business from payment fraud with these advanced prevention techniques.

Common Fraud Patterns

Types of fraud:

1. Card testing
2. Account takeover
3. Chargeback fraud
4. Identity theft

Detection Systems

Implement detection:

// Fraud detection system
const fraudDetection = {
  checkTransaction: async (transaction) => {
    const riskScore = await calculateRiskScore(transaction);
    const patterns = await checkFraudPatterns(transaction);
    return {
      risk: riskScore,
      flags: patterns,
      action: determineAction(riskScore, patterns)
    };
  }
};

Machine Learning

Use AI for detection:

• Pattern recognition
• Anomaly detection
• Behavioral analysis
• Predictive modeling

Prevention Measures

Key strategies:

1. Address verification
2. CVV validation
3. 3D Secure
4. Velocity checks

Real-time Monitoring

Monitor transactions:

• Transaction patterns
• User behavior
• Device fingerprinting
• Location data

Response Plan

Handle fraud cases:

1. Immediate blocking
2. Investigation
3. Customer notification
4. Legal reporting