Fraud Controls

What it is:

Fraud Controls are the proactive and reactive mechanisms organizations implement to detect, prevent, and mitigate consumer fraud across identity and transaction journeys. These controls can be split into Consumer-Driven Controls(actions users take, like reporting fraud or enabling MFA) and Organization-Driven Controls (technical and procedural defenses built into systems). Fraud Controls include both prevention strategies (e.g., eKYC, Behavioral Biometrics, device binding) and detection strategies (e.g., advanced fraud analytics, real-time transaction monitoring).

Why it matters:

Fraud remains one of the top threats to financial institutions, gaming operators, and e-commerce platforms. Strong Fraud Controls reduce financial loss, safeguard customer trust, and ensure compliance with regulations such as PSD2, MAS TRM, and PCI DSS. For CIAM and IAM platforms, fraud prevention is directly tied to digital identity protection—detecting account takeovers, blocking bot-driven attacks, and preventing mule account networks. A layered defense strategy combining consumer education with Adaptive Security ensures early identification and mitigation of fraudulent activity.

How it works:Fraud Controls combine multiple layers of defense-in-depth. Consumer-Driven Controls include proactive measures like customer education, phishing awareness, and strong password hygiene, as well as reactive actions like reporting suspicious activity. Organization-Driven Controls leverage technical defenses:

• Proactive Controls: eKYC to verify identities, Behavioral Biometrics to detect anomalies, device/IP monitoring, and real-time transaction scoring.

• Reactive Controls: Incident response teams, account lockdowns, transaction analysis, and customer notifications.Modern fraud defense integrates with PingOne Protect for real-time risk scoring and PingOne Verify for identity proofing, embedded within IAM Journeys and Kubernetes-orchestrated Containerized IAM platforms for scalability.