They say, love is blind. On the cards when it comes to online dating. Nowadays, customers have a choice between the array of dating apps. Unfortunately, it is a Hobson’s choice.
The intrinsic tech development in the global matchmaking industry goes along with forging ahead fraudsters and their new schemes of phishing, romance scams, payment, and affiliate fraud, high chargeback ratio for both businesses and their clients. There are no unaffected websites or apps.
Therefore, that does not mean, that your business has a chance to apply an ostrich strategy and just eat the leak of lost revenues and customers.
Romance not scam
Romance scam is one of the best known fraud types in e-dating. In simple terms, it is an identity theft done to obtain sensitive data of the user (name, address, IP, email, card credentials, etc.).
According to a Better Business Bureau study on how scammers use impersonation, blackmail, and trickery to steal from unsuspecting daters, the romance scam victims from USA and Canada have lost nearly $1 billion in the last three years.
But the researchers also underline that this number is not that acсurate, because many victims simply do not report about their scam issues in dating.
On top of all of that, the BBB report says that at the same point of time there can be 25,000 scammers online. And moreover, the FBI’s Internet Fraud Complaint Center considers the romance scam to be one of the greatest dollar loss of any fraud or scam that affects individuals.
The real problem with romance scam is that this kind of identity theft is hard to recognize at the very start.
Emotional users simply have no ability to check and verify the other side of the screen. Thus, it is always difficult to say if it is a romance or scam.
Breath down fraud’s neck
Fraudsters never sleep, but you can watch them out. The solution applicable for this purpose could be an anti-fraud platform. The majority of anti-fraud platforms help online dating businesses to detect fraud behavior, avoid risks and save customer loyalty.
However, not all the platforms are able to detect the new-coming patterns apace, and can not be customized to a specific risk logic and business flow.
Covery is ready to help here. Covery is a global risk management platform helping online companies prevent fraud and minimize risk. They have more than 5 years of expertise in preventing fraud and minimizing risks in the dating industry.
The nuts and bolts
Covery uses the latest H2O framework for Supervised Machine Learning and has unlimited capabilities for creating scoring rules and scenarios, it helps to track down romance scam, affiliate fraud, identity thefts and other types of fraudulent activities in dating space more efficiently and quickly than the average anti-fraud solution.
User events analyzation for early fraud prevention
The most crucial information about the user and fraudster could be taken from the analysis of his/her steps on the website or inside the app.
Vast majority of the fraud prevention platforms allow checking typical steps: registration, login, payment.
By contrast, Covery creates a specific risk logic that analyzes the connections among locations, devices, identity, and behavioral patterns throughout the whole sales funnel from registration to the transaction and payout step.
Device Fingerprint technology for malicious bots and bad affiliates detection
The combination of user events data could also be combined with device fingerprint data on the platform for not only detecting fraud but also for risk assessment enhancement.
Covery’s device fingerprint detects individuals with Proxy, different time zone and language records, anonymous users, emulated devices, bots, old OS, old browsers, AdBlocks, IP reputations, and lot’s of other data.
Device Fingerprint technology used together with machine learning models analyzes data at the affiliate level, which means that the platform could be used to check transactions from each traffic channel.
Trustchain for user scoring
Trustchain is a blockchain-inspired reputation network. Trustchain is fully GDPR compliant technology since the platform does not link PII data to a certain user.
This gives Covery customers ability to mark and use the reputation of 1 or several identifiers like email, phone, device fingerprint, etc. inside their risk logic in the most secure way.
Here Trustchain combined with other Covery features can also help to identify grey traffic, as well as identify best customers.
With scoring approach you have the ability to indicate good users, VIP customers, and whales in order to trigger a right business flow on your side, let’s say, an up-sale or dynamic pricing.
Enhanced reporting for increasing customer satisfaction rates
Covery has 6 types of customizable reports with both raw and aggregated data for various business purposes.
With those rules, business can get insights on most performed user events, transactions analysis, the efficiency of rules applied by the platform to detect fraudsters, and the performance of agents.
Using such statistics helps to detect and apply the best strategies for increasing customer lifetime value through the product.
To sum up, they say love is blind. But Covery does not get a wink of sleep.
Find out more about Covery here.