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With over 100,000 fraudulent merchant websites flagged on the network already, TrueBiz protects financial institutions from known fraudulent merchants and repeat offenders
It’s easy to create a legitimate business entity. It takes just $20 and 20 minutes of your time. This is great for budding entrepreneurs but it’s also great for fraudsters who use these entities to commit crime.
When you combine this fact with the emergence of generative AI, identifying these fraudsters is becoming even more challenging for financial institutions (FIs). Generative AI enables fraudsters to rapidly create legal entities, develop a fictitious online profile, and repeat the process at scale. Merchant fraud is a growing global threat, costing financial institutions, businesses, and consumers an estimated $38 billion annually.
That’s why we’re launching the latest pillars in the TrueBiz feature suite. The Smart Blocklist and Merchant Risk Sharing Network are designed to protect FIs from known fraudulent merchants and repeat offenders.
The Smart Blocklist empowers FIs to maintain an internal database of identified previously rejected businesses. These businesses are then flagged immediately if they reapply with similar credentials. Using cases that are flagged specifically for fraud on the Blocklist, the Merchant Risk Sharing Network allows FIs to opt in to share information about fraudulent businesses across a secure network.
Read more below on the ways we’re helping our clients fortify their defenses against the constantly evolving threat of fraud.
Identifying merchant risk
When merchant risk analysis does its job correctly, a fraudulent merchant is prevented from accessing services. But that doesn’t stop the fraudster from reapplying to the same service with slightly altered details.
They may change their business name or website, for instance, but apply with the same address and phone number. It’s simple for fraudsters to set up a new entity, create a new online profile, and try to gain access again.
Smart Blocklist
TrueBiz’s latest solutions make it much harder for fraudsters to repeatedly attack our clients with slightly altered business credentials.
The Smart Blocklist enables FIs to maintain an internal database of identified high-risk businesses they have previously declined, whether for fraud or non-fraud related reasons. If a new business with similar credentials applies, it is immediately flagged.
Merchant Risk Sharing Network
If the reason for flagging this business is fraud, TrueBiz clients can choose to share the merchant’s website URL with other customers on the Merchant Risk Sharing Network. In return for opting into sharing their fraud cases, they gain access to the other fraudulent merchants flagged by our other clients across our network.
The TrueBiz Research team regularly adds to this data set to ensure a robust and comprehensive database of flagged businesses. Our constant and wide-reaching vigilance ensured that this is a rich database from day one. Our team's expertise includes:
Multiple Data Sources: We draw from an expansive variety of sources, not limited to customer-contributed data. By pulling information from public sources, online libraries, government databases, consumer protection agencies, and social media, we maintain a wide-ranging catalog of potential fraudulent businesses.
Continuous Analysis: Every week, we programmatically analyze millions of merchant websites, looking for clear and obvious fraud and phishing signals. This includes both well-known indicators of fraudulent behavior and nuanced patterns detected through advanced analysis.
As of today, over 100,000 fraudulent business websites have been flagged across the Merchant Risk Sharing Network.
These tools empower your risk management process by instantly flagging known high-risk businesses, and cutting down the time and resources spent processing recurrent fraudulent applications.
More than just an individual defense, these features establish an interconnected protective network. By sharing your fraud experiences, you're fortifying your defenses, and strengthening the collective resilience of our industry.
Join us today to participate in the creation of a safer, more efficient financial ecosystem, and let TrueBiz's Merchant Risk Sharing Network transform the way you identify risk.
Click here to learn more, view the API docs and book a demo.