How to Increase the Accuracy of ATO Fraud Detection

October 3, 2022

During our first session of Fraud Office Hours, an attendee asked, "How can you increase the accuracy of account takeover fraud detection?" Watch this video clip and read below to see how Unit21's Head of Fraud Risk, Alex Faivusovich, responded.

Increasing ATO Detection Accuracy

"I would say for account takeover, I like to think about account takeover as the account is a door, and the user has a key to open that door.

And what we try to understand is: does the user use several different keys to open that door, or is he only using one key to open that door, and always try to flash anomalies when suddenly you see a key that never opened that door, or maybe he using a key that hasn't been active for long, so use as many signals as you can around the device, around the geolocations, around the IPs. Try to build into your strategy non-monetary signals with monetary signals.

So, for example, if you see a login, and then suddenly an address change, and then funds coming out, is that suspicious? Or vice versa. It's critical to understand if the login matches the same place where the onboarding came from.

In many cases, we see fraudsters who will do their best to mask their geolocation during onboarding, because sometimes they understand there are a lot of restrictions for different IPs and geolocations in onboarding. Then when they do the actual login, they aren't trying to mask themselves and you can  see a very big difference between the place where the customer used to onboard and the place he used to log in. Be sure to leverage as many non-monetary signals as possible in your account takeover strategies."

Looking for more insights? Check out our first session of Fraud Office Hours on-demand for a deeper dive into current fraud trends and which preventative measures to consider.

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