nSure.ai Answers
Fraud-prevention experts answer merchants’ questions about payment fraud and digital protection solutions.
Recent Answers
How to Stop Online Gambling Fraud In Its Tracks
The online gaming world is growing by the day and so is the fraud targeting it. According to Grand View Research, the global online gambling market was valued at $57.54 billion in 2021, certainly a ripe target for those with nefarious motives. Gambling platforms have an increased risk of fraud for the same reason digital goods fraud is so rampant: little to no intelligent protection, short time to ROI, and low risk of getting caught. How to Prevent Online Gambling Fraud Fraud managers must work constantly to prevent such fraud without repelling legitimate customers. Staying well within the chargeback "safe zone" to avoid being backlisted by payment processors is an ongoing challenge for any manager, especially when the goal is to make it as easy as possible to start playing. Many websites opt to add more friction: long-winded KYC vetting, geo-locking, deposit/withdrawal wait times, transaction limits, and so forth. These tactics make it harder for customers to interact with the website and often mistakenly flag transactions as fraud, which hurts conversions. Machine learning represents a real solution to this thorny issue, rooting out fraud attempts instantly at scale while allowing for smooth, uninterrupted gaming by honest players. By building on their experience handling millions of transactions and constant accumulation of behavioral data, AI-based platforms like nSure.ai can streamline this process. Deploying top-tier technology to handle transactional fraud analysis is a game-changer for online gaming—eliminating guesswork, false flags, and endless hours of manual review. Common Types of Online Gambling Fraud While fraud comes in many shapes and sizes, most online gambling fraud involves exploiting the gambling website's systems. Some common types of online gambling fraud include: Multiple account fraud or collusionCard-testing fraudChip dumpingStolen funds (credit cards and PayPal)Promotion/bonus abuseFalse chargebacks
Asked 5 days ago
Here's How Synthetic Identity Fraud Detection Is Possible
Identity fraud, similar to identity theft, occurs when someone unlawfully uses someone else's personal information to commit fraud or other crimes. Synthetic identity fraud involves the construction of elaborate false identities that use real personal information to appear legitimate. Though fraudsters aren't stealing an actual identity in this process, they are using specific pieces of real information which make it very hard for a business to discern such fraud. It's also much harder to notify victims of fraud if the fake identity is constructed from multiple real ones. Fraudsters use a synthetic ID to cloak their true identities while committing crimes like stealing digital goods or opening fraudulent accounts. Together with a cloaked IP address and other advanced tools, fraudsters can do real damage without the business realizing it has been hit by fraud until well after the fact. How to Detect Synthetic Identity Fraud Synthetic identity fraud is a complex and relatively new form of identity fraud, and it's very difficult for existing solutions to control. Often, a human analyst must tediously sort through mounds of information to figure out what's going on. Even then, synthetic IDs appear legitimate and the fraud may only be revealed by in-depth metadata analysis. The best option is to use a fraud protection platform like nSure.ai. nSure.ai's predictive AI fraud detection uses machine learning to catch fraudsters before they act, without affecting legitimate customers. Any merchants looking for guaranteed chargeback coverage and a 98% approval rate should look no further.
Asked 5 days ago
Why Identity Verification Is Crucial in Fighting Crypto Fraud
Crypto fraud is a growing concern among financial institutions. Increased identity verification is key to fighting such fraud, because it removes any anonymity fraudsters have. Identity verification in crypto requires a client to verify their true identity before being permitted to use a platform's services. While crypto transactions are private, they are not necessarily anonymous, and linking someone's true identity to their transactions helps keep a financial record to fight fraud. If a platform has identity verification measures in place, it likely takes security seriously. Such platforms are trusted more often by their clients than platforms that only offer anonymity and obfuscation. Crypto payment platforms that verify their clients' identities are also protected by government laws and insurance, allowing their clients to send money with confidence. How Does Identity Verification Work? Identity verification is a one-time process linking a client's identity to their transactions. Crypto platforms can verify clients' identities in essentially the same way as any other industry. Know your customer (KYC) verification is the most popular method and is almost universally required by governments for any financial institution. The crypto industry may seem like a ripe target for payment fraud, even though traditional payment systems like credit cards suffer much more fraud. Crypto payment fraud is actually not very difficult to prevent with the right tools, since there's usually more information available on which to make a decision. The best solution is to use a fraud protection platform that balances security with a smooth user experience. Adding too much friction to the signup process may chase away clients, so the ideal solution involves using fraud protection in tandem with KYC verification for security that your clients can trust.
Asked a month ago
Risks of Trading Crypto Without KYC Verification
Know Your Customer (KYC) verification is the process by which an institution verifies the identity of its clients before allowing them to perform certain actions on a platform. KYC is often found on cryptocurrency exchange websites. Most jurisdictions require all exchanges to implement KYC verification or face fines and license revocation. Some crypto exchanges, like decentralized exchanges, accept the risk of ignoring KYC as a cost of doing business. If an exchange doesn't use KYC, it likely also can't document deposits and withdrawals. Without this documentation, governments may seek to shut down such exchanges as they are seen as hubs of criminal activity. Such exchanges can easily "exit scam" with their clients' money since these exchanges are unregulated and subject to no one. Even honest non-KYC exchanges can be hacked with virtually no repercussions. Crypto owners can choose to trade crypto directly with other individuals too. However, without the protection and accountability of a compliant exchange, it's easy to be scammed. As a general rule, OTC trades are also more expensive than mainstream exchanges. Is It Possible to Trade Crypto Without KYC Verification? Trading crypto over the counter without KYC or on a decentralized exchange can be done. However, these exchanges risk entanglement with the aforementioned perils. We recommend using an exchange that values the security of its clients and puts suitable measures in place. When it comes to exchanges, it's advisable to use a fraud protection platform that prioritizes security and user experience. Adding KYC for government regulatory compliance is necessary, but it's a fine line—implementing too many KYC layers adds more potential customer friction and could chase away sales.
Asked a month ago
How the E-Gaming Industry Can Tackle New Account Fraud
Online gaming businesses often offer incentives to attract new customers, but nefarious actors use these rewards as an opportunity for fraud. New account fraud is when a fraudster opens multiple accounts at once to hoard the bonuses offered to new users, compiling the rewards meant for one person over and over again. Tactics for New Account Fraud Detection Detecting e-gaming fraud isn't easy. Manually monitoring all new users and trying to figure out which ones may be fraudsters is borderline impossible for a human. However, monitoring metrics for overall user engagement should reveal a sudden uptick in accounts that receive the incentive and show no subsequent gaming action. E-gaming businesses can also detect new account fraud by checking the IP addresses responsible for multiple accounts, or if there's any other pattern present with these new accounts such as a similar username or email domain. Best Practices for Fraud Prevention Prevention is always preferable to putting out fires, and this is especially true with new account fraud. We've already established the impracticality of manually checking every account request for authenticity before approving it. The most effective prevention solution is to deploy automated account approval tools that unobtrusively check whether the user's behavior is fraudulent or not. An advanced AI platform like nSure.ai is the answer. nSure.ai's machine learning software detects and intercepts fraud attempts near-instantly while leaving legitimate users undisturbed. The platform analyzes multiple data points at once, including on-site user behavior, to catch bots and stop fraudsters in their tracks.
Asked a month ago