For abuse and fraud teams, decreasing the amount of fraudulent new users is a daily practice. While many organizations have a vetting process for new customers in place, it can be challenging to find a balance between providing access and creating constraints.
When resources and tools are too difficult to access, there’s the risk of alienating credible new users. However, if you don’t create any restrictions, you potentially open a floodgate of low quality users who will try to use your tools without any return for your organization.
Fraudulent users are smart. They know exactly how to access what they need without ever paying, providing fake credit cards, utilizing free trial periods, and accessing resources with no intent of compensating your team for their time and effort. By not having barriers in place to limit these users, your team wastes energy that could be focused elsewhere. While many fraudulent users are simply looking for free tools, some are more malevolent, resulting in stolen customer credentials or blacklisting.
Start limiting the amount of fraudulent users with these simple, effective tactics.
- Add complexity. Make it as hard and as unbeneficial as possible for fraudulent users to misuse or access your resources. Fraudulent users are all about ROI, if the effort and costs outweigh the benefit, they won’t spend their time on it and look elsewhere.
- Join forces. Connect your Fraud and Abuse Teams. By working together, the teams can share information and resources, quickly identifying fraudulent users. The teams are also the best equipped to collaborate on possible solutions and barriers to put in place to prevent fraud. The sooner you do this, the less time you’ll need to allocate to fraud.
- Monitor new users. The timeframe fraudulent account users have is short. By examining abusive behavior that might occur in a new account, you can utilize abuse desk data to determine the likelihood that it’s fraud. Stay diligent about shortening the time period potential fraudulent users have to use your resources.
- Delay access. Delay the payment run when an account is first created, in order to see if the account will go fraudulent. This will prevent your team from chargeback costs, and enable you to deny access to fraudulent users. This is something your team should do when they’re confident your abuse desk is in good shape. Abusix can help with that.
By creating a simple process for verifying the authenticity of new users, your team can be proactive about decreasing fraudulent users. Learn how using Abusix enables your team to cut back on fraud.