What are the top 7 features of an efficient fraud management system?

fraud management systems

Last modified on March 26th, 2024

Fraud management systems can protect your company from the type of severe reputational damage that healthcare company, Atrium, experienced. Its CEO diverted millions of dollars to owners instead of providing adequate healthcare for patients. However, efficient fraud management systems are not so easy to come by, especially since fraudsters now use sophisticated online tools and technologies. It’s hard to contrast the different solutions from competing brands. In this piece, learn all about the features to compare.

Trustpair is an efficient payment fraud prevention platform that performs ongoing and international account validation, leading to zero cases of online fraud for clients. Request a demo for more information!

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#1 Real-time monitoring

Real-time monitoring means that the system can rely on the most up-to-date information and analytics available. This is helpful because working in real-time enables organizations to react to suspicious activity before any revenue is lost in fraudulent transactions. This is especially important in this day and age. Scammers attack businesses online in a matter of seconds and use increasingly sophisticated tools.

At the moment, some fraud detection systems work retroactively, because their data is delayed. But even a matter of minutes could make a difference in losing millions or protecting your company from fraud. Organized cyber attackers can exploit that small window of opportunity. They can ensure that they strike before their victim even suspects fraud.

For example, Trustpair’s digital software is based on live payment data to approve or block outgoing transactions to suppliers during the accounts payable process. Once an invoice is submitted by a third party, Trustpair’s platform validates the company and bank details. This works in real-time. It prevents transfers before any third party is both identified and verified. Our solution is based on machine learning. It offers integration features for live monitoring in your existing technical ecosystem.


#2 Reliable data sources

Did you know that 30% of organizations are currently suffering from outdated vendor information?

Company changes, staff appointments, bank closures – each of these circumstances lead to a change in the data, through email addresses, banking information, and more. Companies must therefore have access to reliable external data to compare it to their own and make sure there are no discrepancies in their reviews.

Unfortunately, if these discrepancies are not discovered, companies are at a higher risk of fraud. For example, a fraudster who impersonates one of your suppliers would insist on a change of bank details. Without being able to accurately learn the legitimacy of the new details (and the identity of the person behind them), your organization could pay the scammers.

Benefit from the largest shared database of bank accounts in the world by partnering with Trustpair for a fraud solution. Reviewing vendors on a case-by-case basis, get automatically notified when conditions are unfavorable, or when the data doesn’t correlate.

At Trustpair, our tools are integrated with the most reliable vendor data on the planet, ensuring the utmost security for clients. We’re able to check many data points. These include company identity, business owner identity, bank account number, past transactions, etc.


#3 Machine learning core

Machine learning is all the rage in tech and web3, but can the service be useful within fraud management systems too?

Machine learning essentially allows a system to continuously learn from its previous data and actions. It helps set up rules to avoid risky transactions. This can then be used to guide future decisions with more accuracy and reliability.

In particular, relying on a machine learning core for fraud management can be useful because it takes human emotion out of any decisions. Instead, robotic process automation can work efficiently and without the risk of manual error.

Let’s use the example of phishing – a common fraud technique that relies on the manipulation of an employee.
It often results in the victim trusting the fraudster with access to internal systems. The real reason why phishing has been so successful is because of social engineering. It warps the victim’s view on the situation. For example, it can use urgency and pressure. Organized perpetrators will directly target one member of the team with added details to make the ruse more believable too – in a case of spear phishing.

But relying on a machine learning core to make the decisions in businesses, such as whether to make the requested transfer, takes social engineering out of the picture. It doesn’t even matter if your employee has fallen for the scam because the payment would be deemed as suspicious and therefore be blocked, anyway.


#4 Customization and control

Another key feature of any efficient fraud management system is considering how much customization and control your team members can have.

When operating at a smaller level, this type of feature might not be as important. But for enterprise companies in particular, teams find it more necessary to be able to personalize the dashboard and adapt the level of responsibility between different colleagues. It can also let workers move freely around the system to quickly get the information they need.

For example, the segregation of duties is a widely accepted financial principle. This means that any financial process is not overseen by a single individual because it increases the opportunity to commit internal or employee fraud. An efficient fraud management system should be able to give or prevent access to various team members and create customized workflows in line with this principle.

Without this level of customization, companies could find that they’ve left only one person with the oversight to make big money payments, for example.

It’s much easier for external perpetrators to dupe one employee rather than two, or the employee could be tempted into sending themself transfers to a shell company. That’s exactly what happened at this UK firm, where the office manager managed to redirect over $1million to herself through fake invoices without detection.


#5Risk rules and scoring

Risk rules

Delving deeper into the technology used, risk rules, and risk scoring are two factors that are integral to any fraud detection software. But not all models are made equal.

Risk rules refer to the creation of a logic step: if X, then Y.

One example of a risk rule could be: if this customer address is located in a different country than the bank address on the invoice, then the incoming payment must be investigated further as it poses a chargeback risk.

Again, this takes the idea of human emotions or decisions out of the equation and instead relies on smart technology that can’t be manipulated. Businesses are more likely to be protected against fraudsters.

Risk scoring

Risk scoring is similar, and is a method of estimating the likelihood of fraud. It takes hundreds of variables and ranks your third party against them for protection from these high-risk events. The scoring could focus on customers or third parties such as suppliers.

For example, factors like:

  • History of ecommerce chargebacks (typically from a customer standpoint)
  • IP address match
  • Email address trust
  • VPN usage
  • Bank account match

Once each of the variables has been estimated, some have more weight than others. They are then compiled together to create an overall risk score out of 100. If the risk score is 30, this transaction is 30% likely to be fraudulent.

It’s not only useful for fraud prevention solutions to include risk scoring but also to present this to internal team members in both absolute and granular ways. This ensures that the employees understand the risks behind the decisions, and can act accordingly.


#6 Security and compliance standards

Another highly-important feature of fraud prevention systems is that they comply with regulatory rules. For global enterprises, this can be particularly important, as offices in various jurisdictions could have differing requirements.

For example, US businesses might find it useful to know that Trustpair is SOX Law compliant. The Sarbanes-Oxley Act requires publicly traded companies to be transparent in their financial reporting. It also creates provisions for whistleblowers.

Ensuring that your fraud management system is SOX Compliant means that it can effectively integrate within the business to fully experience the benefits of digital transformation. Without such integration, the creation of a compliance process becomes more costly and resource-intensive. Operational efficiency is the only way to reduce these costs.

Avoid the extra work by opting for an online fraud management system that adheres to the correct regulations and regularly reviews compliance as regulations evolve.


#7 Dashboards and fraud KPIs

Fraud KPIs refer to the indicators that show a fraud management system is operating effectively (or not hitting the mark). For example, KPIs could include:

  • Transaction approval rate
  • Transaction denial rate
  • False positive rate
  • Total fraud rate
  • Fraud rate per channel (ie website sales vs third-party marketplaces)

An efficient fraud management system will display these KPIs to ensure that clients can track the numbers and stay on top of them. A dashboard display is the most common method. Indeed, it acts as an interface for each of the features of the system. This enables members of staff to move through different fraud risks, scores, KPIs, and data. They can effectively gather the information they need, and make quick decisions. It’s important these dashboards are customer-friendly with intuitive ergonomics and design as well as customizable features.


Use Trustpair for efficient fraud management

Businesses that can rely on their fraud management solutions benefit from operating with confidence, working efficiently, and importantly, reducing the risk of fraud. Trustpair has successfully blocked 100% of fraud attempts for its clients since inception, with enterprise-grade technology.

Our platform offers the ultimate protection against fraudsters thanks to high-level technology. It harnesses the power of real-time account validation based on machine learning rules.  This way, it detects any suspicious transaction or change in vendor data. It also provides insightful analytics and extensive customer support. This will help you leverage the power of the platform at any given time.

Protect your company (and customers) against the most sophisticated fraud landscape that has ever existed, by partnering with Trustpair.

To learn more about how to choose the right Fraud Solution for your business, download our Fraud Guidebook!

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Here’s a summary of fraud management features:

The top six fraud management system features to look for include real-time monitoring, multiple data sources, machine learning core, customization capabilities, risk scoring, and compliance. Rely on Trustpair to protect your business from payment fraud through an efficient fraud management system.


Yes, Trustpair is one of the leading fraud management systems. Operating in the US, Trustpair leverages data from global sources to prevent payment fraud from financially affecting your business.

Our fraud detection solution offers extended risk coverage for customers and helps them monitor transactions efficiently, thanks to cutting-edge technology. Indeed, our software continuously monitors third-party financial data (bank account number, company ID, business owner identity, etc) to make sure all transactions go out to the right vendor, guaranteeing payment security.

We also offer features like extensive risk analytics, dashboards, customized workflows, and top-notch user experience. On top of that, we guarantee compliance with the main rules required for US businesses.

Trustpair is one of the leading fraud software companies with a 100% success rate against attempts of fraud. The best fraud software companies focus on harnessing the most up-to-date technology to reliably protect against both established and emerging threats. Compare reviews – customer satisfaction is a good indicator, of pricing, security, and customization before opting for your system.

For example, our customers indicate a high level of satisfaction thanks to increased payment security. Our solution has helped businesses wipe out fraud and increase their protection against fraudsters. Our software can help you reach the next level in fraud prevention and detection and not lose money to fraudsters.

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