Why the Importance of Email Security Software Has Grown and What It Means for Fraud Prevention
We put the email address at the center of our fraud prevention tools because it’s the gateway to numerous accounts and, therefore, is something worth protecting and securing by consumers.
On average, a consumer’s email address is connected to 130 accounts. Because of all of these ties, a lot of history is related to an email address. As a result, it becomes very difficult for fraudsters to fake a consumer’s behavior.
Explore the reasons why email should be at the center of your fraud prevention strategy.
Email security technologies were developed because email addresses are at the core of all online habits and dependencies. Statista projects there will be 4.4 billion email users by 2024, even with the abundance of messaging apps.
With email acting as our global online passport, consumers invest in protecting their email addresses and look for guidance to prevent an account takeover, email security breach or email phishing scam. They actively and regularly ensure their email accounts aren’t compromised through methods such as two-step authentication and email security technologies.
Users are keeping email addresses for years — if not longer than a decade. Anything that widely used and equally protected deserves to be at the center of your fraud prevention strategy.
But, for many companies, it isn’t yet. They’re using other information to drive their overall risk assessment strategy. The issue with those other data points, such as mailing addresses, phone numbers or driver’s licenses, is they differ around the world. Email addresses, however, are globally used and recognized.
Although many businesses are in the practice of capturing emails and developing a blacklist, this system doesn’t provide analysts with insights into the behavior patterns of fraudsters.
Despite the extensive use of email addresses and their ability to be used as a global identifier, many companies aren’t using them in their overall risk assessment models. But there’s an infallible reason why they should.
We can outsmart an email security breach that leads to an account takeover or synthetic ID fraud.
From account sign-ups to purchases, consumers are already used to entering their email addresses, which makes this an incredibly frictionless data point. In addition, email addresses are hard to hack, as users are typically alerted if that’s happening with preventive measures such as two-step authentication. Fraud rings prefer scalable schemes, and an account takeover via an email phishing scam takes too much time and effort.
But, what happens when email security software is breached, or when email security technologies fail? These types of issues often lead to an account takeover or synthetic ID fraud. Experts predict the fraud losses due to account takeovers will reach more than $20 billion this year.
Furthermore, Forbes reported that lenders experience a loss of $6 billion each year from synthetic ID fraud alone.
Each use of an email address leaves a trace. That’s why we’ve put this unique global identifier at the core of our fraud risk analysis and scoring models: to help outsmart fraudsters engaged in synthetic ID fraud and account takeovers.
We recognize that the long-standing use of an email address and its connection to many accounts offers robust data that points to a clear pattern of behavior, which can be used to assess risk. These patterns help fraud analysts make confident decisions whether to accept a transaction or to thwart fraud.
Pair a standard, difficult-to-hack data point with rich history, and the result is a seamless customer experience. That’s what makes email the perfect solution for detecting and preventing fraud on a global scale — and what makes Emailage a critical part of a multilayer fraud prevention tech stack.
Whether facing an account takeover or an email security breach, companies aren’t just challenged with reducing online fraud; they’re also confronted with the issue of their bottom line.
Businesses need to strike the right balance between rejecting fraudulent transactions and approving genuine customers. If the pendulum swings too far in one direction, it means denying real customers and losing lifetime value. If a company’s approach skews toward the other, it results in increased fraud losses.
With its widespread use, increased security investments and rich history attached to each account to help identify abnormal behavior patterns, email needs to be at the center of any business’s fraud prevention strategy.
Learn more about our suite of fraud detection and prevention solutions to see what fits your company’s needs.
Email Risk Score provides a quick, easy-to-digest analysis of risk to help your team reduce fraud cases and provide seamless customer experiences.
Portal 3 delivers cutting-edge, cohesive and comprehendible data visualizations to maximize productivity and efficiency.