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AtData's Recent Findings on Email Indicators for Fraud Detection

In the rapidly evolving landscape of digital payments, fraud detection is more crucial than ever. A recent analysis by AtData, a prominent name in email intelligence and data security, has uncovered four significant email indicators that correlate strongly with increased fraud risk. This analysis, based on over 4 million transaction assessments, aims to equip businesses with the necessary insights to bolster their fraud prevention strategies.

The Four Key Email Indicators

1. Disposable Emails as a Major Warning Sign
The study found that disposable email addresses are closely linked to fraudulent activities. These temporary emails are often used to circumvent identity verification measures and commit one-off fraudulent transactions. Notably, industries leveraging these types of emails reported fraud rates exceeding 70%. This alarming statistic suggests that organizations need to implement stricter verification processes when encountering such email domains.

2. Email Age and Its Significance
The age of an email account also plays a critical role in determining fraud risk. The research indicates that emails created just days before conducting a transaction are 25 times more likely to lead to fraud. This risk is magnified in the lending industry, where addresses less than 30 days old demonstrate a staggering 35-fold increase in fraud susceptibility. Importantly, borrowers utilizing newly-created emails showed a fraud rate of 67.3% in payment scenarios, raising further concerns about email verification practices.

3. Anonymized and International Proxies
Fraudsters tend to obscure their actual locations by using proxies or VPNs. The study revealed that transactions conducted through international proxies are 3.7 times more likely to be fraudulent compared to those originating from domestic IP addresses. In lending applications, the risk escalates to an astonishing 14.6 times. This highlights the necessity for real-time IP intelligence to identify and mitigate threats stemming from masked geolocations.

4. Domain Reputation as a Predictive Indicator
Finally, the analysis emphasizes the importance of a domain's reputation score. Domains identified with elevated risk scores were found to be 10.3 times more likely to appear in fraudulent loan applications. Therefore, organizations must invest in real-time domain scoring assessments to proactively flag suspicious transactions before they escalate into losses.

Challenges and the Way Forward

In an era where traditional detection methods often miss the more sophisticated signals present in email data, AtData advocates for a transition towards more dynamic and real-time fraud detection systems. Diarmuid Thoma, AtData’s head of fraud and data, remarks, “Bad actors are exploiting every gap in digital payments systems.” This indicates that having static, rule-based filters is insufficient to combat ever-evolving fraud tactics.

The Role of Machine Learning in Fraud Prevention

AtData’s fraud detection network employs advanced machine learning techniques to analyze behavior based on individual email addresses. With its wealth of historical data, AtData can effectively uncover malicious users attempting to exploit online platforms. By integrating real-time intelligence into fraud prevention strategies, businesses can better protect both their operations and their customers from malicious activities.

About AtData

Founded on over two decades of experience, AtData is a leader in the field of email address intelligence. The organization’s focus on accurate, privacy-compliant solutions allows businesses to navigate the challenges of modern digital interactions. By processing billions of monthly activity signals, AtData aids organizations in reducing fraudulent transactions and preventing the creation of fake accounts. To learn more about how AtData can fortify your business against fraud, visit AtData.com.