Major Use Cases and Capabilities
Major Use Cases
Prevent Account Take Over (ATO)
ATOs target business users and consumers both. Most often the motivation is stealing money or any assets that can be converted into money, such as points in customer loyalty programs. All organizations must strive to prevent ATO fraud. An ATO occurs when fraudsters use breached passwords and credential stuffing attacks to execute unauthorized transactions. Additional means for account takeover fraud are malware attacks (man in the middle and man in the browser) as well as the use of Remote Access Tools via Trojan or social engineering scams.
Prevent Website Abuse
Website operators face a number of different and constantly evolving threats such as platform abuse, returns or other types of policy abuse, competitive price checking bots, fake reviews and comments, fake job postings, fake goods advertisements on auction sites, fake vehicle listings, social media bots, ad click fraud, etc.
Prevent Social Engineering Scams
Fraudsters often rely on social engineering to get victims to do things for them, such as giving up credentials or transferring money to them. Fraudsters use all channels available, including phishing, voice phishing (vishing), and SMS texting (smishing). Examples include fake job postings, fake utility notices, fake investment opportunities, fake tech support communications, malicious invoices with payment redirection, ticket scams, and caller ID spoofing. Organizations must protect their brands by catching fraudsters who are using impersonation to defraud their consumers.
AML/KYC/Other Regulatory Compliance
Various financial regulations require validation of users at registration time and periodically after account creation for Anti-Money Laundering (AML), Know Your Customer (KYC), US Office of Foreign Asset Control (OFAC), Politically Exposed Persons (PEP) validation, and other sanctions screening. Many organizations find additional sales and marketing opportunities through KYC initiatives as well.
Improve Customer Experience
Customers expect service providers to prevent fraud. Customers often switch to competitors’ businesses when they are victimized by fraudsters. Many of the capabilities offered by FRIP directly improve the customer experience by making omnichannel interactions more pleasant by employing less obtrusive and more user-friendly fraud checks and security mechanisms.