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What is fraud management?

fraud man - age - ment
noun

Fraud management is the process of identifying and preventing potential fraudulent activities concerning a business or its customers. This involves a thorough examination of the transaction process, its users, accounts and entities with the aim of thwarting fraud.

Payment fraud, such as credit card theft or fraudulent refund requests, is a prevalent issue for eCommerce businesses when illicit transactions occur over the Internet. Providers that offer fraud protection, whether they are payment service providers or specialized fraud prevention software companies, work to curb fraudulent behavior. They achieve this by staying current with the latest fraud trends, utilizing address verification services (AVS), implementing anti-fraud tools and scrutinizing each transaction either automatically or through a combination of automated and manual order screening. Detecting fraud at an early stage minimizes revenue losses and enhances customer satisfaction and retention.