What is fraud prevention?

Fraud prevention is the implementation of a strategy to detect fraudulent transactions or banking actions and prevent these actions from causing financial and reputational damage to the customer and financial institution (FI). As the online and mobile banking channels becomes more popular and FIs continue to digitize, a strong fraud prevention strategy is only going to become more important.

Fraud Prevention vs. Fraud Detection Solutions

Financial institutions are continuing to invest money in fraud detection and prevention to protect their customers. These are related concepts in cybersecurity, but they differ in important ways:

Fraud Prevention

Fraud prevention occurs before the fraud attempt

The goal of fraud prevention is to reduce the risk of future fraud

Fraud Detection

Fraud detection occurs during the fraud attempt

The goal of fraud detection is to mitigate fraud

Sophisticated fraud detection solutions also reduce false positives which improves the user experience and increases the productivity of fraud teams

Workflow

1. A customer places an booking request from our shopping cart page

• As soon as customer clicks on confirm button, request is being forwarded to ClearSale and they start with fraud detection process.

2. ClearSale’s A.I. technology scans the booking request

• Their proven, proprietary statistical algorithm scans the request to look for common fraud patterns.
• The algorithm is customized with fraud rules created specifically for travel industry, and runs on a powerful machine learning platform.
• When scanning request, ClearSale’s technology processes an extensive amount of data, including: Information contained in the request, device information, external data sources etc.

3. If the booking request is questionable, a fraud analyst manually reviews it

• Their fraud analysts are trained to look for reasons to approve your request — not decline them.
• They know how to see beyond the algorithms and capture details that computers can not.
• Analysts are assigned to review requests based on several factors, including the industry, language, your risk profile, and the analysts's moving average performance levels.
• If the analyst determines the request is legitimate, it is immediately approved.
• If the evidence suggests the order might be fraudulent, the request is immediately sent for a second manual review for verification.

4. If the first manual review suggests fraud, a second analyst validates the fraud finding

The second analyst will review the existing evidence but will also attempt to seek out new information.

• This might include contacting your customer directly.
• If the second analyst determines the order is legitimate, the order is immediately approved.
• If the second analyst is still unable to validate the order, ONLY THEN is the order declined.
• This balanced approach ensures every good order is approved and every fraudulent order is declined.

Thanks to this unique fraud detection system, ClearSale gives you the highest approval rates and lowest false positive rates in the industry.