With 7.9 billion email accounts worldwide and 4.3 billion active users, emails now play an essential role in fraud detection and identity verification. Businesses leverage email not just for communication but also as a vital tool to assess risk, prevent fraud and gain greater confidence in associated identity attributes. Email addresses anchor digital identities in today’s interconnected world.
Email addresses are remarkably stable, with most users keeping the same one for over a decade despite life changes like moving or changing phone numbers. This consistency makes email an invaluable resource in fraud prevention as it allows organizations to gain deeper insights into consumer behavior.
Email as a Constant in the Digital Landscape
Emails persist where other identifiers fluctuate. People often change physical addresses, upgrade devices or adopt new phone numbers, but their email remains a trusted and enduring constant. This permanence allows businesses to assess consumer behavior over time, a process which strengthens fraud detection frameworks.
Beyond its dependability, email dominates consumer-business communication. Research reveals 55% of retail customers prefer email for communication, underscoring its significance. Businesses use email to track not just preferences but also transaction history, creating a robust layer of intelligence for identifying suspicious behavior.
Spotting Fraud Through Consumer Behavior
Understanding the historical behavior of an identity offers the strongest defense against fraud. Email activity patterns help establish baselines. If a fraudster employs an email address outside of an identity’s usual patterns, such as initiating spikes in email-driven transactions or shifts in location, it can be a sure sign of fraud.
Imagine an email occasionally used for ordering food or managing accounts suddenly processes 10 transactions in a single day. This deviation raises a red flag. Yet not all unusual behavior points to fraud. Seasonal shopping or travel can cause spikes in transactions and businesses must evaluate additional elements like billing addresses, shipping details and device usage to validate authenticity.
Associated data points, such as social media activity, also offer critical fraud insights. A complete social media profile with a photo, posts and friends suggests legitimacy, while inactive or incomplete accounts may imply risk. By integrating email data with these attributes, businesses build a clearer picture of whether the user is genuine or potentially engaging in fraud.
Addressing the Next Wave of Fraud
Fraud is evolving rapidly with the rise of generative AI, making it essential for businesses to adopt advanced detection tools. Businesses must implement adaptable, machine learning-driven solutions to stay ahead.
Machine learning (ML) enhances fraud detection by analyzing thousands of data points and refining its models based on real-time activity. These intelligent systems identify fraud patterns unique to each industry, region and customer, enabling businesses to counter even the most sophisticated fraud tactics effectively.
Balancing Security and Growth
Advancements in AI and ML will drive the future of email intelligence in fraud prevention, enabling organizations to combat increasingly sophisticated fraud tactics. These technologies will analyze vast amounts of data in real time, identifying nuanced patterns and predicting potential fraud with greater precision.
AI will continuously evolve alongside fraud tactics, learning to detect even the most subtle anomalies while adapting to emerging threats. This evolution will empower businesses to proactively mitigate risks, deliver more accurate fraud detection and balance security with seamless user experiences, cementing email intelligence as a cornerstone in modern fraud prevention strategies.
Businesses must strike a balance between robust fraud prevention and seamless customer experiences. Overly aggressive fraud controls risk alienating legitimate users, while lax measures open the door to fraud.
Email intelligence helps businesses maintain this balance. By relying on email’s stability and understanding the behavioral context behind it, organizations safeguard their operations while building trust with customers. Fraud prevention, when executed accurately, enhances customer satisfaction and loyalty, driving growth.
With fraud threats growing more complex, the role of email intelligence has become even more critical. By harnessing the stability and behavioral insights provided by email addresses, businesses can combat evolving fraud tactics while ensuring secure, seamless experiences that benefit both customers and organizations alike.
About the Author
Maanas Godugunur is the senior director of fraud and identity at LexisNexis® Risk Solutions, a leader in providing essential information to help customers across industry and government assess, predict and manage risk.
