Developing a fraud strategy can feel like a major hassle. But fraud detection software can make the process easier and more effective.
It’s important to find a technology solution that can solve all the problems you’re experiencing from a provider that truly understands the challenges facing restaurants today.
Here are the seven features you need to achieve the results you’re looking for.
Data is the foundation of a fraud detection and prevention strategy. And with that data, you can do so much.
Without fraud technology, all your customers look the same. For example, you might collect and store the standard details for everyone who dines with you — like email address and payment details. But those details don’t provide insights. You don’t know anything about your customers or the risk they pose to your business.
Fraud technology goes beyond the basics to collect and analyze real data that has value and meaning. For example, fraud technology can take the email address you collected and check to see how many devices it’s associated with, if that email has already been used for a promotion, if the account created with that email is trying to be accessed by someone else — and so much more.
To stop fraud, you need to be informed of the potential risks of each customer you interact with. And data makes that possible.
You don’t need just any data. You need the right data.
Having the right data is the first part of effective fraud technology. The second part is artificial intelligence (AI) and machine learning that can use the data to make decisions.
Make sure the technology you implement has the right kind of machine learning so that it can solve a variety of problems accurately.
Machine learning is a form of applied AI. It is the science of getting machines to act intelligently without being programmed. Using machine learning, fraud prevention solutions can learn on their own and continually improve results without human intervention. That way, you can automate decisions while still getting the most accurate risk assessments possible.
Some fraud technologies in the industry today incorporate supervised machine learning — which is the most basic capability.
Supervised machine learning looks at the customer’s past actions such as chargeback activity and refund requests.
But the best protection comes from combining multiple machine learning models. This allows for greater insights and more accurate decisions. At Kount, we use both supervised and unsupervised machine learning.
Unsupervised machine learning looks at the customer’s attributes such as number of email addresses and types of devices.
Both models evaluate the data associated with a given interaction and compare it to data in the network. Then, it generates a transaction safety rating. From there, transactions can be automatically declined, approved, or held for manual review based on established policies. So all you have to do is set up policies and risk thresholds that align with your business goals, and the technology will go to work.
Below is a visual of how Kount's technology incorporates machine learning.
Mobile apps can increase earning potential for QSRs, but they pose a major fraud risk if left unprotected. If your restaurant has a mobile app, you’ll want to secure it with fraud technology. Here are a couple of fraud screening features to look for when considering your options.
It’s important to use mobile fraud screening tools to detect fraud. And it’s ideal to embed those fraud prevention capabilities into the development of your mobile app. A software development kit (SDK) provides an easy, smooth integration of fraud technology for mobile devices. Plus, it allows you to create a frictionless — yet secure — mobile app experience across all mobile platforms.
These are the two key benefits of using a mobile software development kit to manage fraud:
Stronger Fraud Protection:
Improved Customer Mobile Experience:
Some fraud prevention solutions make approval decisions based solely on their machine-generated algorithms. That means the technology assumes it knows what’s best for your business. But what you actually need is a way to make decisions based on your business’s unique fraud risks and business goals.
For example, maybe you want to adjust your policies to correspond with promotions or big events. If you sell chicken wings and pizza, your restaurant is probably popular during the Super Bowl. If you operate a cafe, you could see an influx in activity on National Coffee Day. At busy times, you might want to relax your fraud rules. Letting in a few more fraudsters could be preferable to accidentally turning away good customers that would otherwise be loyal, repeat diners.
Customizable business policies enable the flexibility you need to be efficient but also increase revenue as much as possible.
No one knows your business better than you, which is why you should determine the way your business responds to different risk factors.
Chargebacks happen when customers contact their bank to dispute purchases they’ve made with your restaurant. Managing chargebacks can be confusing, labor-intensive, and costly — if you don’t use technology. A quality fraud management platform will incorporate chargeback solutions into the technology.
Fraud is not your core competency — and that’s okay. The right fraud technology platform comes with experts that can help you set risk thresholds and business policies to maximize your profits.
In today’s digital world, fraud management is a necessity. And on your own, it’s incredibly difficult and expensive to do right.
That’s where fraud technology comes in.
But not just any technology. You need a solution specifically designed to tackle the unique threats facing restaurants. And Kount can help. Kount works with dozens of restaurants like yours to reduce risk and increase revenue — with the highest ROI possible. And we can help you too.
We understand the challenges unique to your business. And we can help you solve them. Plus, our fraud experts will be there to guide you every step of the way.
Sign up for a demo and let us show you how Kount could benefit your restaurant.