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Revolutionize Fraud Prevention with AI: Tailoring The Optimal Fit

Verosint's pragmatic AI solution works for those responsible for fraud, trust, safety and security for digital marketplaces with new fraud intelligence superpowers that enables you to do much more with less.
Written by
Travis Favaron
Published on
April 18, 2024

Verosint’s mission is to protect businesses from account and platform fraud, and we believe that real-time threat detection and prevention is a prerequisite to stay ahead of increasingly diverse fraud and constantly changing tactics. To effectively accomplish real-time detection and prevention using today’s tech toolbox means leveraging AI.

We look at AI as a natural extension of our product vision, including ease of use and enabling nearly any team to become fraud fighting experts. We’ve gained valuable customer insights and identified important best practices since rolling out AI capabilities last year. Below are the bullet points summarizing key capabilities now available in our fraud intelligence platform that reflect these learnings:

  • We’ve learned that it’s better to flip the traditional dashboard model upside down. We look at the big picture and then focus quickly on the key Insights you need to know. From there, you can optionally drill down to see the data behind these insights. We’ve also provided pre-built business rules so you can instantly block fraudulent and anomalous behavior.  
  • It’s important to provide customers with the level of autonomy that’s right for them. You can choose your sweet spot between various semi-autonomous modes (where humans are in the loop) to fully autonomous real-time detection and prevention. You decide and you are always in control.  
  • Customers want a highly effective fraud prevention solution that works right out of the box without a lot of hand holding or customization. The majority of teams don’t have the time and resources to fine tune AI parameters, adjust models, or otherwise fiddle with all the AI knobs. They just want a solution that works.

In short, we believe we’ve developed a pragmatic AI solution that works well for those responsible for fraud, trust, safety and security for digital marketplaces. It provides new fraud prevention superpowers organizations don't already have, and enables existing teams to do much more with less. Let me describe these capabilities further along with the customer insights that led us to build them into our platform.

Rethinking the Dashboard - Start with the End First

Our team has been building dashboards, analytics, and reports into SaaS products for many decades. In that time, the panacea for a great dashboard was “actionable insights”. The goal was to collect all the relevant data in a single place and allow you, the viewer, to draw an interesting conclusion from the data.

In talking to customers to design a new AI Insights experience at Verosint, we realized something that can change the game. The power of generative AI now lets us flip traditional dashboards on their heads. If a traditional dashboard has always been measured by the conclusions you (the human viewer) can draw from it through manual inspection and analysis, what would happen if we used AI to generate the conclusions and present them first?

But wait, you may say, how can I trust that the AI interpreted the data correctly? That’s a great question, and exactly why we flipped the dashboard upside down, but didn’t do away with manual data analysis and report customization. We know that some of us will want to inspect the data backing up a conclusion more deeply. However, after talking to customers of various skills and resource levels, we believe the best way to use a dashboard is to see all the conclusions drawn and then drill down at your option, because not everyone has the time, expertise or business need to see all the interesting data underneath.

This is exactly what we built in our fraud intelligence platform. In our Insights experience, you can take an insight and click through to the corresponding activity data that the conclusion is based upon. You can click directly through to Verosint’s Explorer and deeply investigate the surrounding data to verify if you agree with the conclusion drawn by Verosint AI or not. From there, you are also provided with a prebuilt rule, which you can choose to customize further or not, to block the offending behavior.

Verosint AI Insights

Death to the Review Queue — Selecting Levels of Autonomy Right For You

In a world where the tools to commit fraud are getting better, faster, and cheaper every day — the volume of fraudulent activity is moving from unmanageable to flat out intolerable. If your approach is to flag and manually review everything that looks suspicious, you will drown if you haven’t already. With a rising sea of items to review an entirely new approach is needed.

You won’t find a review queue in our product. We are built specifically to help you get to an autonomous response, although we realize every customer will want to arrive there at their own pace. However once you arrive there, it can feel as good as literally turning off the running faucet of fraud.

Knowing that every customer is different, we’ve built a fraud detection and prevention platform where you can have the highest level of autonomous response you are comfortable with for the specific environment or situation. We break the choices down into three levels of autonomy:

  • Autonomous discovery
  • Autonomous prevention
  • Autonomous insight-to-action

With autonomous discovery, Verosint’s AI is automatically finding account and platform fraud on your behalf. You can think of it as presenting all the needles from the proverbial haystack to you on a silver platter. You decide exactly how or even if you’d like to prevent what has been discovered.

With autonomous prevention, Verosint leverages integrations directly into your application stack to deny or challenge fraudulent activity in real time. Finally, with autonomous insights to action, Verosint instantly detects and protects you from various types of fraud, without you ever needing to lift a finger.

Nobody Has Time to Fiddle with Knobs - The Need to Work Right Out of the Box

As we explored all the ways we could use AI to help our customers fight fraud, we quickly learned that more customization or “model tuning” just meant a higher burden on the customer and time and expertise they didn’t have or wouldn’t prioritize.

Our approach is that we don’t believe you need all the knobs anyway to effectively detect and prevent fraudulent activity in real-time based on practical experience. In theory, those knobs might get you a marginally better outcome, but in practice, teams simply have other higher priorities than AI fine-tuning. Instead, Verosint is a purpose-built fraud intelligence platform that works right out of the gate and our customer testimonials describe that it is highly effective in doing so.

Artificial Intelligence Fraud Prevention Protects the Most Important Thing

Marketplace architects and designers will tell you success is a delicate balancing act. The marketplace only succeeds if all sides in the marketplace (buyers, sellers, brokers and any other stakeholder in the ecosystem) willingly come to the table and get significant value out of the arrangement to return.

When all things are well balanced, the value of a marketplace can soar. However, the most important invisible success factor underlying all of this is trust. What’s the fastest way to erode trust? Fraud.

If you are building or operating a marketplace, you must find ways to fight fraud early and often. Imagine the death spiral a ridesharing service would encounter if enough riders determined they couldn’t trust that their driver would provide them with a safe ride home. If ridership declines, drivers have to look elsewhere for work. As drivers leave the platform, the remaining riders experience slower and worse service. Before you know it, there aren’t enough drivers and riders to keep the ecosystem going.

Of course, every digital marketplace is different, but until recently the ability to provide efficient and effective real-time fraud prevention was largely unavailable to them. We’ve built a fraud intelligence platform powered by AI that we believe changes the game. It allows you to sustain a well-balanced and fraud-free marketplace even if you don't have traditional resources or expertise available. It’s designed for pragmatic marketplace operators that are balancing many priorities and stakeholders. These folks also realize the importance of real-time fraud detection and prevention, because fraud can quickly become the most existential threat a marketplace can face.

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Travis Favaron

Travis is the VP of product at Verosint and is responsible for the technology roadmap and product strategy helping to guide development of the industry’s most effective online account fraud detection and prevention solution. As an experienced B2B SaaS Product leader, Travis led product management for early stage startup, Bypass, where he helped grow the company from its beginnings to a strategic acquisition. He lives life with an entrepreneurial spirit, curiosity with an intense drive to solve problems, try new pathways and challenge himself.