Detecting and preventing fraud have become in-demand over the years. As such, expectations from fraud solution providers have gone up as well. Most organizations today are thus looking for third-party cybersecurity firms that can do it all.

As a security vendor, what can a company do to enhance its fraud prevention offerings? A website categorization database can help. However, before we discuss that, let’s take a look first at what makes an ideal fraud monitoring tool.

The Ideal Fraud Monitoring Tool

A useful fraud monitoring tool can detect and respond to various cases. It should be able to do so for a specific organization or an entire industry. Furthermore, it needs to be capable of identifying odd instances while being easy to integrate into existing tools and processes.

To date, several advanced capabilities have started to become a requirement for fraud detection and prevention. New fraud detection teams are now expected to offer:

Immediate Fraud Prevention

Any anti-fraud tool should have the ability to counteract schemes right away. It should ensure smooth transitions to meet business continuity requirements. Why is that? Organizations can’t afford delays when it comes to dealing with fraud; that is why a solution that instantly alerts users to potential cases of fraud is necessary.

Apart from that, an out-of-the-box solution should also have the flexibility to meet clients’ unique needs.

Machine Learning (ML)

An efficient fraud monitoring tool should possess a powerful rule engine. It should adhere to an advanced set of rules that allows it to identify possible fraud cases based on a specific set of criteria. This shouldn’t be the tool’s main feature though as rule-based systems may not work against advanced threats.

That is why cybersecurity providers are now utilizing ML. This technology enhances the ability of fraud monitoring tools to analyze huge volumes and varieties of data automatically. As a result, the tool doesn’t require much help from humans, thus reducing errors. Solutions that use ML can also be enhanced with various algorithms to produce as many relevant findings as possible.

How Does Website Categorization Figure into This?

Cybersecurity firms that offer fraud monitoring as a service can use website categorization databases as an additional threat intelligence source. These provide users much-needed information on a domain name of interest for a more in-depth investigation.

What’s even better is that some web categorization tool providers utilize ML for their products. This allows their website categorization solutions to provide real-time output.

There’s a good reason why domains should be a primary threat avenue to monitor. It’s no secret that fraudulent activities require the use of domains. Phishers use them for website spoofing, for instance.

What to Look for in a Website Categorization Vendor

If you’re in the market for an ideal website categorization partner, these are the primary aspects to consider:

• Coverage: An ideal provider’s database should supply users with high-quality results. A vendor that can provide data on even newly registered domains often has good coverage.
• Accuracy: This ensures users that the information obtained from a website categorization solution is relevant and precise. It’s essential to seek proof of a product’s accuracy before purchasing it.
• Supported categories: An ideal product should sport a high number of categories. The more categories offered, the better.

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Fraud monitoring tools can no longer operate by themselves to provide the most effective cybersecurity solutions to clients. Companies that offer fraud prevention solutions need to work with third parties to keep up with the growth of and developments in the threat landscape. That said, partnering with a website categorization API provider may be a great start.