The Thrust of Security: Velocity Control Matters

One fundamental idea stands out as crucial in the complicated field of fraud prevention: velocity management. Consider it as the solid foundation on which the castle of fraud control is constructed. In this article, we’ll clearly and simply explain the idea of velocity control and why it’s so important for preventing fraud.

What is The Velocity Control?

Setting restrictions on the quantity or frequency of particular actions within a given timeframe is the essence of velocity control in the context of preventing fraud (example). Transactions, login attempts, and any other activity that can be a sign of fraud are just a few examples of these acts. Businesses and financial institutions can identify unusual or potentially harmful activities that might otherwise go unnoticed by setting these boundaries. One typical example is if there are more than 10 transactions from the same account within 1 minute, then deny the additional transactions.

How Come The Velocity Control Is So Vital?

For several reasons, velocity control is essential to fraud control.

• System of Early Warning: It serves as a system of early warning. Overly frequent occurrences of specific behaviors over a short period of time can indicate the presence of something uncommon or possibly fraudulent.
• Anomaly Detection: Velocity control aids in the detection of anomalies. Establishing normal usage routines makes it simpler to identify differences that might be signs of fraud. For example, a genuine customer might make two purchases within 5 seconds—a common occurrence. However, it’s highly unusual for the same account to generate 20 purchases in just 5 seconds.
• Limited exposure: Velocity control helps reduce exposure to some extent, and without it, you’ll quickly encounter reckless attempts by fraudsters. Also, it can help merchants and issuers avoid being into fraud programs like VDMP and VFMP.

How About The False Positives?

The occurrence of false positives, where regular transactions may appear suspicious without context, is a problem with velocity control. The number of false positives can be drastically reduced by adjusting velocity restrictions to the particular demands of the company. Setting the velocity threshold at 2 purchases in 5 seconds in the previous example would flag a lot of legitimate individuals. Adjusting it to 20 can substantially increase precision.

Summary

Velocity control functions like a vigilant watchman. It closely monitors the quantity and frequency of actions, and when it notices a problem, it calls for help. When used with accuracy and intelligence, this fundamental idea serves as the cornerstone of effective fraud control techniques. It serves as a critical line of defense against the fraudsters’ ever-evolving strategies, assisting businesses and financial institutions in safeguarding both their customers’ funds and their own. Therefore, keep in mind that velocity control is the foundation of a safe and watchful financial world the next time you see it in action.