How to limit the risk of fraud and anticipate bad debts?

On a day-to-day basis, fraud and delinquency rates are major sources of concern for e-commerce businesses. The latter must control these famous rates to limit losses on their turnover. However, with the many existing fraud techniques and the ever-increasing number of unpaid debts (in particular due to the health situation which has impacted many organizations whose solvency has eroded), it is not necessarily easy to fight against these two plagues.

This is a problem that programming interfaces (APIs) can help address. They make it possible to detect false information during entry (in real time), to verify the identity of its contacts and their IBAN. These are all elements that work to limit and control these financial risks.

Detect erroneous information as soon as it is collected

To avoid any risk of fraud or bad debts, it is necessary to have a reliable and verified database. To do this, the data entered must be checked as soon as they are loaded in order to guard against any risk of false information. To achieve this, the IDAIA Group set up API Data Store. This API catalog makes available to the company’s support services, its expertise in international data verification, as well as its data capital, rich in the comprehensiveness of companies in France and 47 million individuals.

On the platform, the group offers the API Company, which controls the existence of an establishment in France. In the case of a registration form, the API pre-fills all the fields with verified information, coming from the data capital of the IDAIA group. Only two input fields need to be completed by the customer, the company name and the postal code.

In this sense, a company avoids false information or input errors. This makes it possible to obtain a reliable database, which also helps the API for verifying phone number, e-mail or IBAN, useful in both B2B and B2C. They are great allies in eliminating false information and thus reducing financial risks.

Verify the identity of your contacts

Online, one of the major issues of recent years is the fight against fraud. To face it, it is necessary to control the identity of its customers and prospects from their first contact with its company. This not only helps to initiate a serene commercial relationship, but also to make its database more reliable.

However, verifying each piece of information can take a long time. For this reason, it is judicious to automate these controls, in particular thanks to the individual verification API, in order to block false identities and reduce the costs of processing litigation procedures for your company.

Protect against any financial risk

In this period of economic and health crisis, several companies are weakened. Some of them have to cope with declining turnover or accumulating financial debts. The alert APIData Store API is an essential tool allowing to be informed almost in real time of the key movements occurring on its customers, prospects and partners. In this way, the risks of default and bad debts can be prevented.

However, it is recommended to inquire about the financial health of your prospects before contracting, which is made possible with the Financial Data API. A company can retrieve in real time and from its own information systems their key performance indicators (KPIs) from the IDAIA Group’s data capital. In particular, the main financial indicators such as turnover, operating income, financial debts, customer receivables, but also financial scores, default scores and scored turnover are accessible. This provides an overview of the health of a BtoB prospect before entering into a contractual relationship with him.

Fight against online bank transfer and direct debit fraud

According to a 2020 study carried out by PWC, the financial audit specialist, one in two French companies has been the victim of wire transfer fraud in the past twenty-four months. Rising statistics which push e-commerce companies to automate the control of IBANs at the time of collection to better control the risks of fraud, specifically thanks to theSEPAmail API API Data Store. This API is based on the “SEPAmail diamond” payment security service, an interbank network created in 2008, to fight against credit transfer fraud.

This solution alerts a company in the event of data entry errors noted on an IBAN, such as an inconsistency in its structure for example, and in the event of non-existence of the bank account. That is, the bank details do not correspond to the declared account holder. This makes it possible to immediately block transfers, control losses and save appeal time in disputes and administrative procedures.

Finally, with a few clicks, it is possible to access all the APIs and services offered by API Data Store. In order to facilitate their use, they can be tested by developers from a free sandbox. They will be in complete autonomy thanks to the swagger documentation, which will guide them throughout the process. To discover all the advantages offered by APIs, do not hesitate to browse API Data Store.