8 Essential Strategies for the Most Accurate Payment Fraud Prevention

Payment fraud is here to stay. For businesses in the fast-paced world of digital goods, fraud is not just a risk—it’s a certainty that is here to stay. That’s the reason why forward-thinking businesses are beginning to factor fraud into their KPIs and turning it into an opportunity for growth. For industries like crypto, gaming, prepaid and gift cards, this mindset shift is not just necessary, but profitable.

These segments present a unique opportunity to turn fraud prevention into a profit center. Payment fraud in these industries is far more complex than in traditional e-commerce, because they attract like magnets fraudsters taking advantage of immediate product delivery and unlimited liquidity for resale. But within this complexity lies opportunity.

nSure.ai observes that these high-velocity digital transactions, similar to cash, generate top margins for fraudsters, who mount sophisticated, AI-driven blitz attacks, often using compromised verified accounts. This new typology of fraud, termed “fraud at scale”, creates massive vulnerabilities if not properly protected, but can be transformed into competitive advantages if the merchant benefits from a highly accurate, fully automated and adaptable AI payment fraud prevention solution. While legacy fraud prevention products focus on authenticating digital identity for the mainstream e-commerce industry using old obsolete rules-based methods, nSure.ai has capitalized on the blue ocean of crypto, gaming, and prepaid - industries where fraud prevention can be the difference between lost revenue and profitability.

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The Reality of Scalable Fraud

With instant delivery of the digital asset purchased and easy resale, crypto, gaming, and prepaid/gift cards have become fraud heaven for bad actors. High liquidity allows fraudsters to launch seismic attacks: industrialized, scalable, technologically hyper-sophisticated, using verified accounts taken over. In these environments, after getting hit massively a few times, merchants often find themselves in a dilemma: decline too many transactions upstream to prevent fraud, and you’re left with a revenue problem. Decline too few, and you’re dealing with skyrocketing chargeback costs and frustrated legitimate customers. 

These attacks are usually very abrupt in a similar way to DDOS attacks, concentrated over a short period of time, as fraudsters don’t have more than a couple of hours before their stolen credit cards are blocked by the networks. This is where legacy fraud solutions fall short. Their one-size-fits-all, rigid approaches aren’t equipped to handle the speed, complexity, or specific needs of these digital goods industries, and can’t accurately prevent those blitzkriegs of intense fraud.

Now is the time to take control and turn payment fraud into a profit center: Implement the top 8 strategies that nSure.ai recommends to safeguard your business.

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1. Adaptive AI: Instantaneous Precision

Legacy systems rely on static fraud models, which are slow to adapt to new fraud patterns and often lead to costly false declines. At nSure.ai, we use adaptive AI, which allows us to automatically adapt to fraud patterns in real time, and spin up new automatically-built fraud prevention ML models in hours, not weeks or months. This instantaneous adaptability ensures we deliver the highest level of accuracy the market has to offer in preventing fraudulent transactions. Our ability to instantly refine models and deliver the most accurate decisions to approve the right transactions allows businesses to optimize the highest level of revenue - including with first-time buyers - while preventing fraud with laser-focused precision.

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2. Razor-Sharp Decisions in 300ms

Efficacy in payment fraud prevention is not about examining each transaction one by one, and catching the obvious threats. The key is to create the most granular filter capturing even the faintest weak signals of a pattern indicating fraud in formation, and stop it before it translates into costly chargebacks. nSure.ai has adopted an Adaptive-AI-driven approach to detecting fraud signals - using more and more relevant data unique to each customer. We use hundreds of thousands of compounded data points in meta-features that don’t just flag risky transactions: In under 300ms, we deliver fully baked decisions to Approve or Decline a transaction. With nSure.ai, businesses are confident that they optimize the three key variables of approved revenue, fraud, and the cost of preventing payment fraud. This philosophy goes far beyond outdated methods like risk scoring, which offer superficial assessments, fail to prevent fraud at scale, and don’t reach the merchant’s full revenue potential.

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3. Dedicated API 

A generic API will never capture the intricacies of a business’s unique environment, and could lead to costly, endless deployment efforts. That’s why nSure.ai offers a dedicated API that is tailored to the specific needs of your business. By embedding fraud prevention seamlessly into your system, nSure.ai is able to fully understand and respond to your customers’ behavior, providing an unmatched level of accuracy. It’s that ability to customize and adapt that sets nSure.ai apart from legacy providers who rely on outdated, one-size-fits-all APIs. By contrast, nSure.ai will spend a couple of days onsite with your team, and will deliver a dedicated API deployed in under 15 days. 

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4. Chargeback Liability Shift 

Payment fraud translates into chargebacks, which can significantly erode a business’s profitability. Unlike other vendors, nSure.ai offers full chargeback guarantee with liability shift on both fraud-related and service-related chargebacks. This means we take on the financial risk of chargeback costs, ensuring your bottom line is protected no matter what. It’s fraud prevention, backed by real accountability, and it frees businesses to focus on growth, not losses. 

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5. Approval Guarantee

 We don’t stop there with chargeback liability shift: we also offer a financial guarantee on our approval rate, meaning that nSure.ai guarantees both the highest Approval rate in the industry, and takes liability for the chargebacks. In short, nSure.ai offers the optimal balance: the highest Approval rate, Zero chargeback, all at the best price.

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6. Reduced Customer Verification

Verification can be mandatory (as in KYC for instance), is sometimes necessary, or in some cases can lead to better CB recovery. However, whatever the verification methods you use (eMail or phone verification, video, face or voice recognition, etc.), verification is not fraud prevention. In fact, relying on verification for fraud prevention purposes can lead to massive CB costs: In the crypto segment for instance, verified accounts account for almost 80% of the fraud we observe. In addition, too many verification steps can scare away potential customers who abandon their carts, significantly hurting your conversion rates. Even worse, the problem is particularly impactful on new buyers, who carry the future of merchants’ revenue with superior lifetime value. By leveraging nSure.ai’s superior payment fraud prevention accuracy, you can reduce customer verification to the strict minimum required. With fewer verification hurdles in place, the transaction process becomes smoother, more new buyer transactions are approved, leading to higher conversion rates, higher revenue and improved customer satisfaction. 

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7. More Relevant Data as Your Competitive Edge

In the payment fraud prevention landscape, data is king. But not all data is created equal. At nSure.ai, we only use data that is relevant to your specific business, and give you a dedicated ML model. Then we enrich the data points we collect from you, compound it, and use meta-features to create a representation of your transaction universe in hundreds of thousands of dimensions. Only then are you in a position to benefit from the highest level of accuracy. Less data, and your filter is not granular enough. Irrelevant data, and you skew the model in the wrong direction. nSure.ai’s unique AI architecture and data methodology contributes to making it the most accurate payment fraud prevention solution, optimizing your revenue and profit.

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8. 24/7 White Glove Support with a Trusted Partner

Even with the best technology, expert support is crucial to maximizing the value of a payment fraud prevention solution. nSure.ai offers 24/7 instantaneous white glove support. We are a trusted partner immersed in your fraud team, available at all times through a shared slack channel, email, phone or text alerts whenever you need guidance or immediate action. Whether you’re implementing our system, navigating complex gaming, crypto or gift card fraud scenarios, or trying to optimize your fraud strategy on specific geographies or product segments, our team of experts is here for you.

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How can you successfully deploy these must-have strategies? 

In the complex and fast-moving worlds of crypto, gaming, and prepaid cards, legacy solutions can no longer keep up. Much more than just another fraud prevention provider, nSure.ai is your strategic business partner that transforms payment fraud prevention into a profit center. We not only protect your business, but drive it forward.

Want to evolve your payment fraud strategy with us? Contact us here.