Significantly reduce online fraud and ATO risk while preserving, and even enriching, the customer experience.

Use cases | Fraud and ATO prevention for merchants

Security without friction for merchant account opening and online access.

Get brochure

Request demo

Significantly reduce online fraud and ATO risk while preserving, and even enriching, the customer experience.

Use cases | Fraud and ATO prevention for merchants

Security without friction for merchant account opening and online access.

e-Commerce merchants today are under increasing pressure from persistent, often AI-powered fraud attacks and scams.

Some of the key challenges include:

Surges in fraud during
high-volume periods

Fraudulent actors look to exploit spikes in transactions to open fraudulent accounts or take over existing ones. Sign-up attacks are reported to spike ~309% during a recent holiday season.

Chargebacks and
“friendly fraud”

After purchases, chargebacks are a costly consequence, not only from unauthorized transactions but also from buyer’s remorse or post-holiday budget strain. Many customers bypass the merchant entirely and go straight to their bank.

The AI
arms race

While merchants can use AI for fraud detection, fraudsters are also using AI (deepfakes, cloned identities, bot-attacks) to attempt to bypass defenses. Legacy tools like simple CAPTCHAs are no longer sufficient.

Need for security without friction

Too many security steps during account opening or login often lead to poor user experience. This causes potential customers to abandon shopping carts, drop out of registration flows, or churn. During peak shopping, even a small amount of friction can have a big impact on cost. One of the biggest risks to online revenue is losing customers because of friction.

Operational and reputational costs

Fraud doesn’t just cost in terms of lost goods or payments; there’s administrative burden, fraud investigation, dispute resolution, customer service time, potential bans by payment processors if chargeback thresholds are exceeded, card network compliance issues and most importantly, loss of customer trust.

It’s a tight rope for merchants to walk: prevent fraud, account takeover (ATO), and chargebacks, while also delivering fast, easy onboarding and login experiences. Luckily, help is at hand.

The solution: Secure account opening and online access,
without friction.

A layered, adaptive approach to risk intelligence, authentication, and fraud prevention enables merchants to significantly reduce online fraud and ATO risk while preserving (and even enriching) the customer experience — regardless of if someone is new to an account or known to an account.

Using our solution, merchants can:

Reduce account takeovers:

Prevent unauthorized access attempts, stop credential stuffing or bot attacks, protect existing customer accounts from being hijacked.

Lower chargebacks and friendly fraud:

By verifying true identity effectively and early, there is less unauthorized or disputed activity; also more defensible in dispute resolution with transaction signing providing proof of intent.

Improve authentication and authorization rates to fuel revenue growth:

Less friction means better conversion during account opening; more legitimate customers pass through cleanly; fewer abandonment and false declines.

Operational savings and reputation protection:

Fewer losses, reduced customer service overhead needed for fraud investigation, fewer issues with payment processor thresholds, higher customer trust.

Key capabilities and benefits.

Adaptive / risk-based authentication

Assess risk signals (device, behavior, location, time, historical patterns) at account opening and login; escalate only as needed (e.g. require OTP, biometric, additional challenge).

Users with low risk pass smoothly; high-risk events are caught with minimal customer effort. Reduces both false positives and fraud.

Behavioral analytics & device data

Determines behavioral anomalies as well as device and location inconsistencies that may be indicative of fraud.

Advice is given on the associated risk and allows for step up to prevent fraud but allow legitimate transactions.

Strong MFA / progressive factor escalation

Based on context (e.g. first-time login, new device, elevated transaction), progressively requiring stronger authentication (push notification, biometric, etc.).

Enhances security only when needed; avoids burdening all users with heavy verification.

Real-time fraud signals and velocity indicators

Real-time indication of abnormal volumes associated with a device or location to flag potential account opening fraud.

Captures suspicious behaviors; enables early detection and prevention before chargebacks or account losses.

Seamless UX / invisible challenges where possible

Hides most checks “under the hood”; require visible challenge only where risk is high. For example: frictionless login, smart caching of trusted devices.

Maintains fast account opening and login flows, reduces cart abandonment or drop-off in registration.

Sample customer journey flows.

User begins sign-up. Entersekt’s system monitors for risk signals (IP reputation, time, device anomaly, velocity signals).
If low risk: allow account creation with standard validation (email, password).
If medium/high risk: challenge with MFA (OTP or push or biometric)

Why merchants choose Entersekt.

Entersekt brings merchants a complete, bank-grade solution that goes beyond payments to secure digital identity across every access point. With deep expertise in device and identity security, our platform delivers real-time, adaptive decisioning that responds to emerging threats like AI-driven or bot-based attacks — far more dynamic than static rulesets.

Security is built hand-in-hand with user experience, ensuring friction is minimized without compromising protection. And because peak periods matter, our scalable, resilient architecture is designed to handle traffic surges, such as during the holidays, without performance issues.

The result is a holistic approach to identity, risk, authentication, fraud detection, and payment security. All from one trusted platform.

False positives / legitimate user rejections

Significant decrease (reducing customer frustration).

Account takeover incidents

Up to 90% ATO reduction seen on average for our clients; reduced frequency of hijacked accounts.

Chargeback rates

Lower chargeback volume, especially friendly fraud claims, richer compelling evidence for disputes.

Conversion / cart abandonment

Higher account opening and checkout completion rates.

Customer trust / retention

Higher repeat usage as customers trust security measures.

Ready for a personalized demo? Complete the form below.