Fraud prevention is one of the most important areas for a business, however, this can be challenging if the right solutions are not in place.
Having the right KYC solutions in place, working seamlessly together can deliver many advantages for a business. With all our KYC, AML and fraud prevention products working seamlessly together through our technology platform is one of the many reasons clients choose Hello Soda.
Today, we’d like to focus on EmailValidate and explain why email is the key to preventing fraud online?
How does EmailValidate work?
At its core, EmailValidate analyses and scores email addresses based on the following four key metrics:
- Date Stamp: The date EmailValidate first encounters the email address
- Longevity: An age score indicating when EmailValidate first encounters the email address
- Velocity: A further score is added based on the level of activity of the email address over the past 6 months
- Popularity: A score reflecting the popularity of the email across EmailValidate sources in the past 12 months
To understand if an email address is potentially fraudulent each of the above metrics is critical to determining this. If an email shows activity over a longer period of time it indicates that it is potentially legit. If an email address shows little or no activity over a period of time that shows a sign the email is potentially fraudulent.
From our experience, many clients suggest that the date an email address is first seen is typically a strong indicator of an email’s legitimacy. When EmailValidate analyses the four key metrics combined with the client’s first-party data analysis, we can gain accurate insights into the legitimacy levels of the email address. Combine that with a dark web check via our FraudWeb solution makes these insights even stronger. This approach results in less fraudulent accounts being set up.
To further mitigate risk there are a number of red flags which can be used:
- A different email is used to open an account and application form
- If different email addresses are used to open an online account and complete the online application form is a good indicator as to whether it’s a fraudulent application or not.
- Multiple numbers used
- If an email address uses consecutive numbers that don’t closely resemble a birth of birth, birth year and use more than 4 numbers can be a cause for concern.
- The presence of swear words
- If swear words are used within an email address that too can question the legitimacy.
- Email address is too long or too short
- If an email address is too long or too short such as one or two words or number are used before the @ symbol.
- Identity is missing from the email
- Typically people will include their name, place of birth and/or date of birth within their email address. If neither are included the probability of it being fake is greater.
- Similar fraudulent email addresses
- Fraudsters will tend to use fake email addresses that use similar syntax with one or two character differences. For example firstname.lastname@example.org, email@example.com, firstname.lastname@example.org and so on.
Sadly, fraudulent data is prevalent across the globe, from e-commerce stores to online money transfer, and, ironically, even for fraud technology companies. And while these industries experience more fraudulent email attempts than others, it doesn’t mean your business couldn’t benefit from EmailValidate.
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