Another relative novelty in combating fraud is called e-mail risk assessment – but how does it happen, and why is it so effective?
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An email address is not just an address where one receives messages these days, a lot more goes into it. In fact, you can consider it as something that is veritably close to an online passport.
We use it to sign up mostly to every possible social network, and it’s also used in login and in every transaction process as well.
Why is the fact that You Need Email Risk Assessment for Fraud Detection?
Like in any fraud detection system, the more information you have about your users the better off you are. This is why you have to concentrate on each and every datum you can collect to make the right management decision.
Benefits of Email Risk Assessment:
- Reduce Chargebacks: Expunge fraudsters who use credit card information that has been obtained fraudulently before making the purchases.
- Protect Users: Mark suspicious changes in email for alerts and to reduce account takeover (ATO) frauds.
- Curb Bonus Abuse: Prevent bad users from using our promo codes and referral program after they register on the site.
- Block Fake Users: So that the registration of fake or synthetic IDs that arise from blurring the distinct categorizations of fake and real data cannot be carried out.
- Improve KYC Verification: Improve regulation of Know Your Customer (KYC) for better regulation and easier management.
It also reduces instances of fraud and protects one’s business and users through risk assessment by email.
Services Offered by the Email Lookup …
By getting the right solutions implemented, it is more than possible for you to find out more about the user through an email search. For instance:
Is the email address valid? The email verification assessment tool will complete what is known as an SMTP check to the domain server and will let you know in a nutshell if it is true or not.
Is it disposable? That should be a clear red flag pointing towards fraud, we can then check whether or not the address was created with a service that provides other temporary email addresses.
Domain Information: was this site created with a free domain? Is there any hindrance to putting it in?
How old is it? The group’s newly registered email addresses are found to more influence the risk factor in comparison to the older addresses. Companies that have operated for a while with references to legal activities.
Found on a blacklist? Companies using blacklists see an email address as suspicious if it was marked as fraudulent by other businesses. Your assessment tool must be able to scan these lists to inform you if there is a risk there.
Found on email data breach? An email address leaked can be referencing a mature one, which has been created and used by a user legally. It could even make it less risky because the theory is just a tentatively thought-out plan that is expected to transform into action when real conditions are encountered.
Does the name look ok? String analysis is a great solution that will look at the actual name of the address. Is it powered by too many numbers? Or a mess of characters that seem to be out of context? And does the name match a cardholder on a transaction?
Why Not to Use Email Handles as User Authentication?
The primary issue with the approach is that email handles are easily obtainable, thus making them a weak link between the node and the user authentication. Fraudsters can use hundreds of online solutions designed to:
Develop free unlimited addresses
Avoid going for a message having suspicious domain names out of the blue by using disposable addresses.
Accurate and aged emails in large quantities are found at services like Gmail, Hotmail, etc., via DN/CN sites.
This offers the fraudsters a lot of control, for although they are locked out of sending emails from your business, they can still view emails sent to their email address without having to provide a real ID or even a financial detail to the account.
