Latentview’s PRISM - Strike the balance between Fraud Prevention and Revenue Growth

The Rising Threat of Marketplace Fraud

In today's digital era, businesses face an escalating wave of fraud complexities, ranging from minor scams to advanced cyberattacks. The Global Fraud Detection & Prevention Market is expected to grow from $43.97 billion in 2023 to $182.6 billion by 2030, with a compound annual growth rate (CAGR) of 22.6%. Typical marketplace fraud includes identity fraud(Account takeovers), chargebacks, phishing scams, etc. With global fraud losses averaging around 7% of total revenue, the financial repercussions are significant. Fraudsters, even after being disabled, persistently try to re-enter using disguised identities, causing ongoing losses for organizations. These challenges highlight the urgent need for robust fraud prevention measures to protect financial integrity and maintain user trust in an ever-evolving digital landscape. PRISM addresses these issues by identifying fraudulent trends and high-risk areas with 30% greater efficiency and in 80% less time.

PRISM: Redefining Risk and Fraud Management

PRISM, featuring a rule creation engine and a linkage detection system, is a Proactive Risk Intelligence & Strategy Management platform engineered by LatentView Analytics . This advanced solution, powered by Generative AI, marks a paradigm shift in risk and fraud mitigation strategies. PRISM enables businesses to seamlessly explore multi-dimensional datasets, swiftly identify factors driving losses, and generate optimized friction rules to target loss-causing segments while minimizing disruption for genuine users. It unmasks fraudsters by linking disguised identities with 95% accuracy, preventing re-entry, and blocking existing linked accounts to combat recurring losses and dismantle complex fraudster networks. By empowering businesses to navigate and interpret complex datasets, PRISM revolutionizes risk mitigation and enhances revenue by reducing legitimate user friction. Generative AI integration enables accurate, easy, and efficient decision-making, enhancing fraud defenses with unparalleled accuracy and protecting business interests.

Building Blocks of PRISM

1. Rule-Creation Engine:

Harnessing the power of artificial intelligence, the Rule Creation Engine enables businesses to detect fraudulent patterns and anomalies with exceptional precision and speed. GenAI-based LLM chatbot assistant enhances data interpretation, pinpoints key performance indicators (KPIs) related to losses, and supports the development of targeted rules to intensify fraud detection efforts. Tailored to meet individual business needs, the engine dynamically adapts to user-defined dimensions, optimizing analytical workflows for more effective fraud mitigation. Additionally, it efficiently summarizes data, identifies crucial groups, and flags sudden irregularities, facilitating a comprehensive examination of potential fraud risks. This system also incorporates automatic alerts, ensuring immediate notification of suspicious activities, which enhances the ability to act swiftly and prevent fraud before it escalates.

2. Linkage detection system:

One of the major challenges for marketplace organizations is the re-entry of fraudsters using disguised identities. This persistent threat sees a high share of disabled fraudsters attempting to onboard with new identities, resulting in recurring losses. Additionally, fraudsters often operate within complex networks, making the detection of malicious users even more difficult.?

Our advanced system combats disguised fraudsters by analyzing historical data and attributes like machine ID, IP address, email, and phone number. It assigns confidence scores using a probabilistic approach, reducing false positives, and efficiently identifying linked fraudsters.

Enhance your Risk & Fraud Intelligence with PRISM

• Securing Every Phase of the User Journey-Implement comprehensive fraud prevention strategies across onboarding, transaction, and post-transaction phases. This includes strong safeguards against account takeovers, mass registrations, bot attacks, phishing, fake listings, real-time monitoring for transactional integrity, and strategic handling of post-transaction issues like chargebacks and fake reviews. Tailored adjustments are recommended based on uncovered fraud patterns and loopholes.
• Refine Existing Fraud Fighting Mechanism-Regularly review and optimize fraud rules by analyzing holdback losses, managing rule leakages, and enhancing rule ordering for better detection efficiency. Develop robust friction mechanisms like selfie challenges and device fingerprinting to increase transaction security.
• Fraud Identification and Mitigation (Emerging, Dynamic, and Existing Frauds)-Utilize machine learning algorithms to analyze transaction data, detect suspicious activities, and automate real-time alerts. Maintain holistic fraud prevention to keep fraud within acceptable thresholds, tackle new fraud methods, and employ effective linkage strategies with a probabilistic scoring model to unmask and block disguised fraudsters.
• Revenue Enablement by Reducing Genuine User Friction- Achieve an optimal balance in fraud prevention by minimizing disruptions for legitimate customers. Reduce false positives through regular evaluation of fraud rules, phase out rules that create unnecessary friction, and enhance user engagement and trust, ultimately boosting revenue.

PRISM can empower you with…

1. Enhanced fraud detection accuracy by 30%
2. Reduced financial losses by 25%
3. Drives revenue growth by 15%
4. Lower false positives 20%
5. Minimal downtime 80%

Alternative Applications of PRISM Across Different Industries

• Marketing Optimization: Identify drivers of KPIs including CLTV, Conversion rates, NPS, etc. This deep insight into user trends boosts campaign effectiveness, enhances customer acquisition and retention rates
• Retail Operations: PRISM helps us understand the factors influencing Inventory Turnover, Gross Margin Return on Investment (GMROI), and Customer Satisfaction Score, providing deep insights into operational decisions to be undertaken.
• E-commerce Personalization: PRISM leverages historic user behavior to segment users and personalizes product recommendations, promotions, and pricing, which enhances KPIs such as Customer Satisfaction Score, Conversion Rate, and Average Order Value, thereby boosting overall sales.

Conclusion:

In a nutshell, PRISM by LatentView represents a transformative solution in combating digital fraud, utilizing advanced Generative AI to enhance fraud detection and operational efficiency. As organizations face increasing threats, PRISM offers a proactive, precise way to maintain user trust. By reducing fraud occurrences and minimizing disruptions for legitimate users, PRISM supports a secure, growth-oriented digital environment. This makes it an essential platform for businesses looking to strengthen their fraud prevention strategies.

Author: Anirudh J Rao