Part I: Coda’s Multi-layered Defense – Powered by Rules & Machine Learning

Outsmarting Fraud: Real Stories from the Frontlines

Imagine this: You’re relaxing at home when a call from a friendly voice interrupts your evening. The caller, polite and professional, claims to be from your phone company, offering a billing waiver for loyal customers. It sounds like a win. All you need to do is scan a QR code or reply to a confirmation SMS. But behind the friendly voice is a scammer ready to use your payment details for fraudulent purchases.

Think this won’t happen to your customers? Think again. In 2023, 43% of consumers fell victim to payment fraud, with 62% targeted multiple times.

Or picture this: You’re a game publisher. Your webstore suddenly sees a spike in small, rapid purchases—transactions so frequent they seem automated. It’s carding fraud at work, where fraudsters test stolen card details with low-value buys. These attempts often slip through unnoticed, leaving you to deal with chargebacks, lost revenue, and frustrated customers.

Fraudsters adapt quickly, using tactics like social engineering and carding to exploit digital platforms. The damage? Financial losses, operational headaches, and erosion of customer trust. But there’s hope…

Frightening Fraud Figures

Fraud isn’t just a nuisance—it’s grown into a USD48 billion global problem.It is estimated that for every USD100 lost to fraudulent activity, businesses incur USD207 in recovery costs, from chargebacks to dispute management. But this isn’t just about lost revenue; it’s about lost trust and disrupted operation. Combating this ever-evolving threat requires a proactive, multi-layered defense strategy.

Mitigating Fraud: Turning the Tables on Scammers

At Coda, we’ve built a robust, multi-layered defense system designed to stop fraudsters in their tracks. Here’s how we do it:

• Identity Tracking: Every interaction is authenticated, blocking unauthorized access from the start.
• Real-Time Monitoring: Suspicious transactions are detected and halted instantly, leaving no room for missed threats.
• Collaborative Network: Our merchants share insights, creating a united front against fraud and continuously improving defenses.

Managing user access is simple with allowlist and blocklist management, making it easy to control trusted and blocked users. If anything suspicious arises, our 24/7 fraud team is ready to investigate and respond immediately.

On top of that, our adaptive risk management system constantly assesses risks across multiple payment channels, keeping you ahead of emerging threats.

The Power of Machine Learning and Rule Management: Why You Need Both

When it comes to fighting fraud, one solution alone won’t cut it. That’s why Coda leverages the combined strength of Machine Learning (ML) and Rule Management.

Machine Learning acts like a tireless guard, learning from every transaction to detect suspicious behavior. It adapts automatically to new attack methods, ensuring you stay ahead of evolving threats.

Rule Management provides control and transparency, allowing you to respond immediately to emerging risks while ML models catch up.

Each approach has its strengths. ML excels at spotting complex, evolving threats, but it may need time to learn new fraud patterns. That’s where Rule Management comes in, enabling instant responses to specific conditions tailored to your business needs.

Together, these tools offer a balanced defense – one that’s flexible enough to evolve with new threats yet structured enough to ensure consistent protection. With Coda, you get the best of both worlds: adaptability and control.

Stay Tuned

In Part 2, we’ll dive into how Coda minimizes false positives and uses analytics to enhance fraud prevention while ensuring a seamless customer experience.

Coda was founded in 2011 and has a long track record of implementing detailed security standards, guidelines, and advanced SSDLC (Secure Software Development Lifecycle) tooling to detect and prevent potential security vulnerabilities. Coda’s comprehensive approach includes: Payment Card Industry Data Security Standard (PCI DSS) Level 1 Certification (the highest and most stringent level of adherence); WAF (Web Application Firewall) & Rate Controls (DDOS/DOS) – key protection mechanisms setup to handle external attack; Dedicated fraud/risk team monitoring transactions 24/7. Global 24/7 anti-phishing platforms.