Now’s The Best Time to Ditch Legacy Fraud Tools – Here’s Why

Now’s The Best Time to Ditch Legacy Fraud Tools – Here’s Why

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by Tamas Kadar

The Covid-19 crisis highlighted the need for smarter business decisions; an evolved fraud prevention system must be one of them.

Whether your business has been positively or negatively impacted by the pandemic, it must have adapted to the changes.

For airline companies like Ryanair, it means being taken to court by users disgruntled with the ticket refund policy. For China’s JD, that means meeting a 400% increase in online sales of household items

And for absolutely everyone, it means navigating an increase in Covid-19-related scams, phishing attempts, misinformation, and of course, fraudster attacks. 

Can’t Cut Back on Risk Protection

In fact, 80% of companies notice an increase in fraud during times of economic distress. This explains why we’ve seen a substantial number of businesses come to us for fraud prevention solutions during this pandemic.

But more mature businesses also switched to our solution, in an effort to cut back on fraud expenses and to increase their runways. Why would they take that risk in the middle of a pandemic?

Improve Your Current Fraud Tech

The first reason to switch anti-fraud providers? Boost the actual fraud reduction numbers. Quite simply, an increase in attacks can highlight cracks in your line of defense you didn’t know existed. 

Maybe you’re still paying too much in chargeback fees. Or you’ve noticed an increase in false negatives. Maybe your risk team doesn’t have enough control over how to fight fraud.

One complaint we often hear about legacy solutions, in particular, is that the technology doesn’t evolve fast enough to combat the latest threats as soon as possible. But even those who invest in the newest techniques can still make it hard to justify the expenditure due to dated pricing models… 

Make the ROI Easier to Measure

Fraud prevention should be one of the easiest ROIs to measure. You deploy the solution. If the amount of money it saves your business is superior to the expenses, you should keep going.

But in practice, many fraud prevention vendors make it harder for you. 

You’re locked in a multiyear contract. You need to run the system for a while before you can measure its benefits. Integration costs can balloon as you need to increase your bandwidth, and the initial investment can be substantial. What you need is a flexible payment solution that helps you see exactly how much you spend every time you use it.

True Try-Before-You-Buy Model

If there is no value, you should be able to walk away, and the commercial risk should be on the vendor, not the customer. Click To Tweet

Speaking of unique pricing models, you’ll be hard-pressed to find many fraud tech vendors who let you try their solution for free. Or if you can do it, it will be after lengthy negotiations with the sales team.

But our ethics align with those of other SaaS companies. If there is no value, you should be able to walk away, and the commercial risk should be on the vendor, not the customer. 

This is why SEON offers a 30 day free trial – more like Netflix and Spotify than other legacy fraud companies. We believe fraud prevention should be effective immediately. And we’re confident 30 days is enough time to show you a significant reduction in transaction fraud, chargeback or bonus abuse, amongst others. 

Full Parallel Integration 

Finally, even if you aren’t ready to make the switch to a new risk solution, you should be able to see if it can boost your current anti-fraud stack. 

Once again, SEON offers some of the most innovative solutions when it comes to integrating anti-fraud tools. 

  • Fully modular solution: Choose the anti-fraud APIs that make sense for you, from Email analysis to IP and Phone modules.
  • One-click data enrichment: our unique Intelligence data enrichment solution can work as a Google Chrome plugin, which means anyone can now get a clear picture of their customers without technical knowledge.
  • Integration flexibility: you can run SEON in parallel with your existing system and measure the ROI and results independently. Particularly useful to see if your current fraud tool works with a chargeback guarantee model.

Ready to Meet New Fraud Challenges?

SEON’s got you covered. With an outstanding support team and dedicated account managers to help you through the initial setup, we’re confident we can help you fight fraud better.

So don’t hesitate to get in touch for your free 30 day trial or to request a demo. We’ll make it as easy as possible for you to create fraud rules using your existing business data, so you can see how powerful tailored and innovative fraud fighting can be. 

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Tamas Kadar

Tamás Kádár is the Chief Executive Officer and co-founder of SEON. His mission to create a fraud-free world began after he founded the CEE’s first crypto exchange in 2017 and found it under constant attack. The solution he built now reduces fraud for 5,000+ companies worldwide, including global leaders such as KLM, Avis, and Patreon. In his spare time, he’s devouring data visualizations and injuring himself while doing basic DIY around his London pad.

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