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PayMongo Protect Overview

Advanced Fraud Detection for Your Business

Updated today

In the dynamic world of online commerce, protecting your business from fraudulent transactions is a top priority. PayMongo Protect is a fraud detection and risk management tool designed to give you real-time visibility and control over risky activities. This article provides a comprehensive overview of PayMongo Protect's key features, including its machine learning-powered risk scoring, custom rules engine, and fraud insights dashboard, ensuring you have the tools to instantly detect suspicious activity and safeguard your business.

For a comprehensive guide, please head on to our Developer Documentation at https://developers.paymongo.com/docs/frauddetector/


What is PayMongo Protect?

PayMongo Protect is an advanced fraud detection and risk management tool that leverages machine learning to instantly analyze and detect suspicious activity in your transactions. It is designed to empower you, the merchant, with the ability to manage and control risky transactions in real-time. PayMongo Protect is built on models trained on millions of transactions, giving it a powerful ability to identify and combat fraud patterns.


How PayMongo Protect Works: A Multi-Layered Approach

PayMongo Protect provides a robust and flexible system for managing transaction risk, with several key features that work together to protect your business.

Real-Time Risk Scoring

  • Scoring System: Every transaction is evaluated by our machine learning model and assigned a risk score on a scale of 0 to 1000.

  • Custom Thresholds: You have the ability to set your own custom thresholds to automatically approve, flag for manual review, or block transactions based on their risk score. This allows you to define your business's specific tolerance for risk.

  • Instant Detection: The system analyzes over 200 signals per transaction, including transaction patterns, velocity checks, and regional behavioral patterns to instantly provide a risk score.

Custom Rules Engine

  • Build Your Own Rules: In addition to automated scoring, PayMongo Protect provides a Custom Rules Engine that allows you to create your own logic for handling transactions.

  • Flexible Logic: You can set rules based on specific business requirements, such as:

    • Transaction amounts (e.g., automatically flag transactions over a certain amount).

    • Geographic restrictions (e.g., block transactions from certain countries or regions).

    • Time-based controls (e.g., flag transactions made in the middle of the night).

Fraud Insights Dashboard

  • Detailed Analytics: The Fraud Insights Dashboard provides detailed analytics and reporting to help you understand fraud trends, the performance of your rules, and the top indicators of fraud.

  • Continuous Learning: The machine learning models are constantly learning from new fraud patterns, ensuring the system's effectiveness remains high.


Control and Action on Risky Transactions

PayMongo Protect gives you full control over how you handle transactions that are identified as risky.

  • Flagged Transactions: For transactions that fall within your defined "flag" threshold, you have the option to manually review them.

  • Automatic Actions: You can also set up custom workflows to automatically approve or block transactions based on your established rules and risk thresholds.


Regulatory Compliance and Security

PayMongo Protect is built to be compliant with key financial regulations, ensuring its reliability and security.

  • BSP & AFASA Compliance: The service is fully compliant with BSP Circular No. 1213 and the Anti-Financial Account Scamming Act (AFASA), which are crucial regulatory requirements in the Philippines.

  • Continuous Improvement: The fraud detection system continuously learns from new fraud patterns, providing an ever-evolving defense for your business.


Notes, Tips, Warnings/Cautions, Best Practices

  • Tip: Start by setting conservative risk thresholds and custom rules. As you gain familiarity with the system, you can adjust these to better match your business's risk tolerance.

  • Best Practice: Regularly review your Fraud Insights Dashboard to understand the types of fraud attempts your business is facing and to refine your custom rules accordingly.

  • Note: PayMongo Protect is a powerful tool, but it works best when used in conjunction with other security measures and maintaining a vigilant approach to your business's transactions.

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