How to Detect and Prevent Transaction Fraud with JuicyScore

Learn how to protect your business from financial loss with transaction fraud detection tools and prevention systems.

Transactional fraud turned out to be one of the major issues for both online users and businesses. With the increase in online payment processors, it's as critical as ever to safeguard your company and yourself against payment fraud. Fortunately, the risk of suspicious transactions taking place can be greatly decreased by taking the appropriate actions and safety measures. The importance of having a time-tested transaction fraud detection solution is higher than ever before.

Understanding different types of fraud, implementing preventive security measures, and adopting the best anti-fraud practices can provide peace of mind regarding payment security. With effective strategies, safeguarding your business against false logging attempts, account takeovers, and other scam patterns becomes possible.

Apart from initial onboarding, businesses need to persistently protect themselves and their customers from malicious entities every time a user initiates an online transaction. The capability to sort out transaction events, isolate and recognize suspicious behaviors or anomalies intelligently, and furnish precise, efficient, and timely feedback on transaction analyses is crucial. The approach helps businesses uphold exceptional customer experiences and guarantee business scalability.

Transactional Fraud Explained

Before adopting transaction fraud detection tools, we need to clarify what payment fraud actually is. This particular type of scam is associated with malicious activities aimed at obtaining money, goods, or services during a financial transaction. Scammers employ different fraudulent patterns to manipulate or exploit others for personal benefit. It manifests across diverse settings such as online transactions, credit card purchases, banking transactions, investment schemes, etc.

Transaction fraud is any type of illegal activity that takes place during a financial transaction. It may occur during any kind of transaction, including purchases, withdrawals, and money transfers. Transactional fraud differs from a typical payment scam as it occurs outside of a payment transaction processor.

Transactional Fraud Types

Transaction fraud takes many different forms and changes swiftly as hackers look for new ways to take advantage of weak spots in digital systems. An increasing list of particular fraud typologies can be found within each of the following main categories:

Account Takeover

Account takeovers are among the most popular fraudulent patterns. They involve phishing, data dumps, and the dark net, which are the popular ways of obtaining victims' personal information. It may include passwords and payment information, credit card or social security numbers, and so on. It is just a matter of minutes for the fraudster to access the victim's account and start making purchases online using stolen identity.

Buy now, pay later

On some websites, clients can order a product in advance and pay for it after getting the product. As a result, fraudsters can operate even more easily as they do not even have to steal credit card information to move on with the transaction or checkout.

Fake Merchants

More skilled scammers mimic typical online stores and create fake e-commerce that looks like genuine merchant pages. After being duped into making purchases, users unconsciously provide scammers with all of their payment information.

Gift card Fraud

Scammers often target gift cards. The idea is to steal them from individuals. Since users won't know that their gift card has been used until they attempt to use it, it is even more difficult to detect compared to credit card fraud.

Chargeback Fraud

Chargeback dispute fraud involves a deliberate effort by a cardholder to initiate an unauthorized chargeback following an online purchase. Common reasons cited by cardholders for disputing charges include:

  • Unrecognized charge or payee on the card statement.
  • Non-receipt of the purchased product or service.
  • Receipt of a defective, damaged, or inaccurately described product or service.
  • Unauthorized use of the card due to theft or lack of consent.

Fraud as a Service (FaaS)

Online fraud services are now being monetized by criminals. Scammers act as traditional service providers offering fraudulent service models, scam patterns, and technologies. Fraud as a Service (FaaS) delivers a variety of fraudulent techniques, instruments, information, and collaborations that can be extremely risky for the entire financial ecosystem.

Criminals are coming up with new strategies to steal personal information and conduct fraudulent purchases as technology advances. For this reason, having a current automated system for fraudulent transaction detection is essential.

Why Transaction Fraud is a Threat to Businesses?

Transactional fraud impacts a broader range of online users. It's not solely businesses that face risks. Individuals are equally under threat. Besides the substantial financial repercussions, payment fraud can damage the online reputation of the company and boost the need to implement advanced personal data security.

Proper decision-making, risk management, and up-to-date technologies turn out to be an essential blend for businesses to enhance customer protection and safeguard their financial interests.

High Chargeback Rates

Businesses are impacted by credit card disputes in terms of delivery, investigation, and chargeback fees; however, excessive transaction-to-chargeback ratios may also result in further fines from the customer. Card issuers may restrict card access in addition to raising chargeback penalties and fees.

Increased Payment Processing Costs

Transaction fraud puts at risk financial institutions, retailers, consumers, and payment service providers. While merchants may become victims of fraudulent transactions and chargeback scams, consumers are in danger of identity theft and account takeover. So, businesses need to implement more powerful and expensive anti-fraud solutions.

Losing Time to Combating Transaction Fraud

The risk of scams, data breaches, chargeback disputes, and other types of fraudulent activities calls for prompt security measures and steps to keep both businesses and clients safe. Companies and customers need to enhance anti-fraud approaches to lower the risk of malicious activities during transactions. The implementation of education programs and anti-fraud tools may take time and money.

The good news is that JuicyScore delivers a 100% automated and affordable solution for transaction fraud detection and prevention. It is the ultimate toolkit to ensure accurate risk scoring across various e-commerce industries and online merchants.

Red Flags That You Have a Transaction Fraud Problem

Businesses must take all required precautions to stop fraudulent transactions. This involves keeping an eye out for the primary indicators of transaction fraud:

  1. Unusual Purchasing Activities. They may involve extremely huge orders, and multiple transactions with the same product in different variations (size, color, amount, etc.). Using multiple credit cards for the same purchase can also be a sign of fraud alongside indicating different email or shipping addresses. 3rd-country orders may also look quite suspicious.
  2. Missing Client Data. Businesses should make sure that potential clients are eager to indicate the required personal data. If they decline to comply or are unable to verify specific details, it might also be a sign of potential fraud risk.
  3. Order Form Errors. It's possible that scammers are not well aware of the payment details they've taken. It may result in the expiration date or CVV code being entered incorrectly several times in a row. The same works for information that does not fit the user's profile, like an uncommon email address that has never been used before.
  4. Too Expensive Purchases. The lack of customer interest in saving money is also a red flag. Buying too expensive or exclusive products without taking care of the return policy is worth properly checking and verifying the user’s identity before approval.

With so many details to keep in mind, businesses often fail to establish proper digital safety means and protect their customers. JuicyScore is an all-in-one solution designed to help merchants reduce transaction fraud risks and build customer trust.

Juicyscore’s Solution Against Transaction Fraud

JuicyScore is powered by state-of-the-art machine learning and artificial intelligence technologies. It offers a comprehensive suite of fraud prevention solutions tailored to help companies detect and prevent any form of unauthorized manipulation during online transactions.

Deploying AI to Detect Financial Fraud

Cutting-edge AI-driven algorithms keep the software efficient and up-to-date. By leveraging hundreds of unique device authentication criteria, it constructs precise end-user profiles from a variety of technological data and behavioral attributes.
With ML-powered techniques, the system autonomously detects and mitigates fraud risks in real-time. Hundreds of user device settings, features, and indicators are utilized to compute technical data, enabling seamless monitoring, assessment, and analysis of network infrastructure.

Broad Data Inputs to Improve Fraud Detection

This integrated data vector facilitates automated data analysis. Despite being lightweight, it efficiently processes a wealth of information, assessing operating system architecture, client accounts, and connectivity of Android and iOS devices. Its primary objective is to aid organizations in enhancing the effectiveness of their decision-making processes.

Key Features

Our system prioritizes user privacy by abstaining from collecting personal data. Instead, it focuses on processing and analyzing behavioral and device-related parameters, enhancing companies' decision-making processes.

Device Fingerprinting

Our solution thoroughly analyzes numerous primary and secondary characteristics associated with potential fraudulent activities. JuicyScore meticulously tracks key device-assisted data to achieve optimal device fingerprinting accuracy.
To ensure precise fingerprinting, our data vector scrutinizes critical elements such as RAM capacity, screen size, display quality, device type (tablet, desktop, laptop, or mobile), and more.

Behavior Data Analysis

When the system detects any irregularity suggesting transactional fraud, it promptly alerts online retailers. Teams identify anomalies and suspicious actions like randomization, device cloning, remote access, and other routing strategies. Leveraging behavioral patterns, it assists in swiftly detecting and preventing various types of suspicious activities.

How It Works

JuicyScore stands at the forefront of anti-fraud technology, serving multiple industries. We continuously refine our solution to align with business needs.

Identifying Suspicious Activity

The system assesses behavioral and technological datasets, utilizing ML and AI technology to continuously refine its fraud detection algorithms. Processing incorporates various aggregated criteria, such as dwell/flight times, average typing or content reading speeds, prolonged use of devices on the same source, duplicate or randomly selected devices, and other behaviorally significant data.

Generating Fraud Probability Scores

The system promptly notifies businesses of any detected abnormalities or unusual activities, signaling potential fraud with "red flags." Teams receive alerts regarding various tactics including different routing techniques, remote access attempts, randomization or potential device cloning, as well as instances of stolen or fake identity.

Whenever an anomaly is detected, the system promptly sends notifications. Businesses review the scoring model's results and determine the appropriate actions for each unique situation. JuicyScore assists in refining risk assessment strategies.

Get Started with JuicyScore Today

Our skilled team is ready to support you throughout the JuicyScore implementation journey. Get started with our advanced anti-fraud solution in just 3 easy steps:

  1. Install JavaScript or SDK on your platform.
  2. Customize configurations according to your business requirements.
  3. Begin collecting and analyzing data within seconds.

Contact us today to schedule a demo and learn more.


What are some common types of transaction fraud?

Generally, transaction fraud involves malicious activities associated with chargeback and gift card frauds, fake merchants, Fraud-as-a-service approaches, and other evolving methodologies used by scammers.

How can businesses protect their customers from transaction fraud?

Businesses need to implement advanced risk management strategies alongside supreme anti-fraud solutions. They will help not only detect but also prevent fraudulent activities and minimize the risk of scams.

How can machine learning and AI help identify transaction fraud?

ML and AI-driven technologies are able to adapt to evolving fraudulent patterns and learn from previous business experiences. It means leveraging historical information in combination with up-to-date anti-fraud techniques for enhanced safety.

What data sources are useful for detecting signs of fraud?

Companies use device fingerprinting and behavioral analysis as the main data source of transaction fraud detection. The approach is used to spot suspicious anomalies, order mistakes, and other errors that can be used as red flags.

Contact us
Let your business grow without risks!