Intro
Fraudsters are always finding new tricks — so we are constantly on our toes to develop countermeasures. To help you protect your business better, behold our newest powerful feature, which is the Advanced Anomaly Detection.
This new feature builds on our existing suite of anomaly detection tools which are Hourly Sales Anomaly Detection, IP and Ship Location Anomaly Detection, but now offers even deeper insights by analyzing data over the past 30 days instead of the previous 14 days. That means deeper insights, better accuracy, and a stronger defense against evolving fraud tactics.
What Is Anomaly Detection
FraudLabs Pro’s Anomaly Detection uses AI-driven technology and frameworks to automatically detect unusual patterns or anomalies for an order based on historical sales records. It helps to uncover suspicious behavior that might otherwise go unnoticed.
We currently support three types of anomaly detection:
1. Hourly Sales Anomaly Detection
Detects unusual hourly sales patterns and then sends real-time alerts via email or Slack.
2. IP Location Anomaly Detection
Identifies orders placed from IP locations that deviate from past sales records.
3. Ship Location Anomaly Detection
Identifies discrepancies in shipping addresses that don’t align with your customer’s historical records.
What’s New
Previously, our anomaly detection features relied on IP location data collected over the last 14 days to identify suspicious patterns. While this has proven effective, we recognized that short-term data may not capture all fraud behaviors, especially those that evolve over time.
Therefore, we have introduced the Advanced Anomaly Detection which uses IP location data collected over the last 30 days to identify suspicious patterns.
This feature is exclusively available for Large and Enterprise plan users only. It’s ideal for businesses handling higher transaction volumes or those more exposed to fraud risks, such as E-commerce stores with international customers, subscription services with recurring billing, high-value goods retailers, digital product vendors and so on.
If you are interested in this feature, you can subscribe to a new plan or upgrade your plan now.
The Key Benefits
Expanding from 14 to 30 days data gives your fraud detection system more context and intelligence. Here’s why this matters for fraud prevention:
1. Smarter Pattern Recognition
This feature gives our system more behavioral data to analyze. This allows it to:
- Detect long-term fraud patterns that may not show up in a 14-day span
- Understand customer buying cycles, including weekend vs. weekday variations
- Establish stronger baselines for what is “normal” vs. “suspicious”
2. Reduced False Positives
Short-term spikes or one-off location changes can trigger unnecessary alerts. With 30 days of historical data, the system gains enough context to recognize:
- Legitimate travel or seasonal shipping changes
- Flash sales or promotional campaign effects
- Regular purchase patterns by returning customers
3. Improved Detection of Slow-Burn Fraud
Some fraudsters operate patiently by testing systems with low-risk behavior before launching a major attack. With a 30-day training data, FraudLabs Pro is better equipped to:
- Spot low-frequency fraud attempts
- Link separate events that form a suspicious pattern over time
- Flag stealthy abuse of IPs or repeated misuse of shipping addresses
4. Increased Protection for High-Risk Transactions
For enterprise businesses dealing with high-value items or sensitive services, even a single fraudulent transaction can be costly. With a broader data lens, anomaly detection becomes more precise.
How to Enable Advanced Anomaly Detection
To verify or customize your anomaly detection settings:
- Log in to your FraudLabs Pro Merchant Area.
- Go to Settings > Smart Detection.
- Enable either Hourly Sales Anomaly Detection, IP Location Anomaly Detection, or Ship Location Anomaly Detection based on your business needs.
- Click on Save Changes.
- Done.
Conclusion
By expanding our anomaly detection to use 30-day data collection, FraudLabs Pro gives businesses a deeper, more reliable view into suspicious activity. This means fewer false positives, faster detection of emerging fraud, and greater protection for your online business.
Ready to Elevate Your Fraud Detection Strategy?
Already a Large or Enterprise plan user? Enable It Now.