Learning the severity of fraud will be easier by looking at some real-life fraud prevention examples around the world. These examples show that resilience against cybersecurity threats becomes possible with the right action.
The perfect example of the damage a fraud can truly do can be seen from the most used digital services nowadays, which are e-commerce and banking. Every day, they must face many sophisticated fraud attacks that target payments, transactions, and accounts.
Given how the threat of fraud attacks keeps increasing year after year, how do these two popular services survive and prevent their biggest foe? Learn how fraud prevention helps companies from bad actors from this article.
Why Fraud Prevention Matters Today
In this advanced digital era, seeking fraud prevention solutions is no longer an option. These reasons alone should be enough for any companies and businesses to adapt fraud prevention to their services:
- Fraud continuously damages online payment systems with no signs of any slowdowns. The Global Payment Fraud report states that losses caused by payment fraud will reach more than $40B by 2027 and have already tripled compared to 2011.
- Fraud attacks are more sophisticated than ever. The rise of AI-powered fraud has made older prevention systems obsolete, pushing companies to utilize stronger fraud prevention.
- Regulation for companies has been stronger than ever. Any companies that own digital services must follow these new regulations by having better fraud prevention solutions to avoid fines and penalties.
Common Types of Fraud in eCommerce
First is e-commerce, which is like a nest for potential fraud. Wisernotify states that every year, the e-commerce industry loses $48B due to online payment fraud. These types of frauds contribute to e-commerce’s losses:
- Chargeback fraud, which is a fraud that exploits good protection systems by falsely claiming unauthorized transactions had occurred to claim the refund. The purchased item is still with the fraudsters.
- Account takeover, which is an attempt to gain someone’s account by stealing it, then use it for conducting unauthorized transactions. Sensitive information inside the account could be used or sold.
- Fake returns or return fraud, which is a fraud where original purchased items were refunded by giving back the same item but with a fake, cheap version. Fraudsters retain the money, while merchants get losses.
- Refund or return abuse, which is a fraud where users take advantage of e-commerce’s easy return system. Items that were previously bought can be refunded easily, making merchants consistently refund money while gaining nothing.
Fraud Prevention in eCommerce: Real Examples
Despite such losses, fraud prevention in ecommerce manages to fight back fraudsters off their services. Here are some of the fraud prevention examples in the e-commerce industry:
Forever New
Established in Melbourne, Australia, in 2006, the global womenswear brand Forever New recently opened their standalone e-commerce store in 2019. Historically, they used manual transaction review processes from CS to warehouse management.
Ever since their partnership with an e-commerce fraud and risk intelligence company, Forever New managed to cut back chargeback fraud by 84%. They have utilized machine learning and charge guarantee systems to ensure all transactions and purchases are legit.
Build with Ferguson
Another fraud prevention ecommerce comes from a home goods brand established in 2000, Build with Ferguson. Their challenges include manual fraud review and constantly dealing with frauds while, at the same time, preserving customer experience.
Since 2011, they have found solutions using automated fraud prevention, complete chargeback recovery, and return abuse protection. This resulted in them having $0 loss in fraud, as well as a near-perfect 98.5% approval rate on their services.
Common Types of Fraud in Banking
Fraud in the banking industry has alarmingly increased, prompting banks to implement banking fraud prevention solutions. Based on Veriff’s Future of Finance report, frauds in financial services increased by 21% between 2024 and 2025.
Here are some common types of fraud banks can expect coming to them:
- Identity theft, which is a fraud where fraudsters steal personal information to access a user’s bank account. This is primarily done by phishing and social engineering.
- Card-not-present (CNP) fraud, which is a fraud where credit card information is stolen and used for transactions that don’t need the credit card’s presence. Credit card information can be stolen by phishing or malware.
- Money mule networks, which are organized frauds where a group of fraudsters launder money by moving illicit funds from one bank account to another. This is the hardest fraud to deal with since it requires hard work between financial institutions and law enforcement.
Fraud Prevention in Banking: Real Examples
Just like e-commerce, fraud prevention in banking industry has been proven successful. These fraud prevention examples show that with the right solutions, having an anti-fraud prevention bank becomes possible:
DBS Bank
Since its establishment in 1968 (and later renamed in 2003), the Singaporean multinational banking DBS Bank has faced problems with fraud. Ranging from a manual and slow traditional risk management and customer service to managing credit risk and fraud.
To combat these problems, DBS Bank implemented AI models for credit scoring, fraud detection, financial nudges, and CS automation. As a result, they have an accurate fraud detection, enhancing trust and satisfaction in their customers.
Credit Bank
Another bank named Credit Bank has also implemented banking fraud prevention solutions. This is the answer to their greatest liability: fraudsters using synthetic identity to abuse issuing credit cards from them.
By using an AI-driven fraud solution, Credit Bank detected 62,000 accounts tied with synthetic identities, which caused them $8 million in losses. Ever since, they have detected and blocked 100,000 synthetic accounts annually, saving $25 million in losses per year.
Strengthening Fraud Prevention with Keypaz
Those fraud prevention examples give us hope that, despite the increasing losses caused by fraud over time, it is not impossible to mitigate them. As one of its solutions, Keypaz is here to help companies to deal with them.
Keypaz is an AI-driven fraud prevention and authentication platform that leverages device intelligence and smart signal orchestration to accurately detect and prevent fraud.
By using Keypaz, companies can prevent common types of fraud found in e-commerce and banking. It is also a complete package with real-time rule orchestration that enables flexibility and adaptability to combat fraud.
Companies can also customize their customer identity journey so that not only does Keypaz work for e-commerce and banking, but it also works for all kinds of digital services out there. This makes Keypaz one of the perfect fraud prevention examples that companies must have for their services today.