Payment fraud detection is a top priority for merchants operating in the digital marketplace. According to the Global eCommerce Payments and Fraud Report 2023, published by Cybersource, different approaches are used around the world to protect these transactions. In this sense, the study also shows that each region of the world prefers different solutions to address its unique challenges.
So, if your company operates or intends to establish itself in a market such as Brazil, it's essential to know the tools most used in Latin America to prevent online payment fraud. Here's a look at them, and how each contributes to safer financial transactions.
Two-factor authentication is the most popular method of detecting payment fraud in Latin America. It requires two forms of verification before an account can be accessed or a transaction carried out. It typically combines something the user knows (such as a password) and something they have (such as an authorised mobile device).
Analysing a customer's order history involves examining purchasing patterns to identify suspicious or inconsistent behaviour. This tool, integrated into the checkout process, uses algorithms to detect anomalies that could indicate fraudulent activity.
In Latin America, where online transactions are constantly growing, analysing order history allows merchants to quickly identify fraud attempts. With this in mind, Bazk continuously monitors and improves its processes to make fraud detection more effective.
At its most basic, credit card verification helps to confirm the validity of the information provided by the customer in the transaction. This includes, for example, checking the card number, expiry date and CVV code.
In general, this is an essential fraud prevention tool, especially in countries where this form of payment is more popular. However, in Brazil, where consumers have massively migrated to Pix, other prevention tools are essential. In this sense, Bazk strengthens this process by offering robust APIs and frictionless integration, guaranteeing greater transaction security.
Identity validation is an essential feature to guarantee the security of online payments. This tool prompts the user for confirmation of their identity before completing a purchase. By requiring authentication (e.g. codes sent via SMS or biometric methods such as facial recognition), companies reduce the risk of fraud, such as card cloning.
Finally, the credit history check involves consulting platforms such as the Positive Registry to obtain the consumer's credit score. This score reflects their financial behaviour and indicates how likely they are to honour their commitments. By doing so, companies can identify potential risks, protect themselves and help prevent online financial fraud.
With its Brazilian DNA and extensive expertise, Bazk offers a complete solution that includes several payment fraud detection tools. In a single integration, merchants have access to multiple advantages such as local currency payments, Pix and risk management.
Get in touch with us to find out how Bazk can help you improve your business in Brazil!
