Fraud Prevention
Full lifecycle fraud prevention
Alloy's AI-powered identity and fraud prevention platform helps financial institutions and fintechs detect and stop fraud at every stage of the customer lifecycle, without adding friction for legitimate customers.
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A top 25 bank leverages Alloy to keep digital channels open
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74%
Reduction in fraud closers
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59%
Fewer manual reviews
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2.6M
Annual savings with Alloy
Our Approach
Behind every fraud attempt is an identity
Fraud takes many forms, but it always starts with an identity, whether real, stolen, or fabricated. Alloy unifies siloed signals across the full customer lifecycle, drawing on 270+ data solutions and tailored machine learning to build a complete picture of who is behind every application, account, and transaction, putting the person at the center of every decision.
First-party Fraud
Catch first-party fraud before it escalates
Transaction Fraud
Transaction fraud
Without Alloy
A customer initiates a transfer to immediately remove funds from the account. The institution absorbs the loss, and the pattern compounds quickly across a portfolio.
With Alloy
Transaction and behavioral history makes it easier to distinguish legitimate money movement from abuse before funds leave your institution.
Bust-out fraud
Bust-out fraud
Without Alloy
A legitimate customer gradually builds trust and creditworthiness before intentionally maximizing available credit or funds and ceasing repayment, often with few early warning signs.
With Alloy
Alloy continuously monitors behavioral fraud signals (such as credit utilization, unusual spending velocity, payment pattern changes) to identify potential first-party bust-out fraud early and enable timely intervention.
Transaction fraud
Without Alloy
A customer initiates a transfer to immediately remove funds from the account. The institution absorbs the loss, and the pattern compounds quickly across a portfolio.
With Alloy
Transaction and behavioral history makes it easier to distinguish legitimate money movement from abuse before funds leave your institution.
Bust-out fraud
Without Alloy
A legitimate customer gradually builds trust and creditworthiness before intentionally maximizing available credit or funds and ceasing repayment, often with few early warning signs.
With Alloy
Alloy continuously monitors behavioral fraud signals (such as credit utilization, unusual spending velocity, payment pattern changes) to identify potential first-party bust-out fraud early and enable timely intervention.
Risk and Revenue
Better fraud decisions mean better business outcomes
Create the conditions for your financial institution or fintech to scale confidently. Roll out more products, approve more qualified applicants, and grow your relationship with existing customers.
92%
of decision makers agreed that fraud prevention efforts have helped them grow their business.
— Alloy 2026 State of Fraud Report
Second-party Fraud
Stop good customers from becoming unwitting accomplices
Money Muling
Money muling
Without Alloy
An account that looks normal moves illegally obtained funds, and the account holder may not even know they're part of a scheme.
With Alloy
Spot likely mule accounts at onboarding, then monitor for risky account changes, unusual money movement, device/login anomalies, and suspicious behavior.
Scams
Scams
Without Alloy
The target is your customer, not your systems, but fraud losses can still land on your organization and diminish customer trust.
With Alloy
Catch behavioral and contextual anomalies early, even when the customer appears to be acting voluntarily. Continuous identity risk evaluation triggers real-time interdiction, like adaptive friction and step-up verification, in vulnerable moments.
Money muling
Without Alloy
An account that looks normal moves illegally obtained funds, and the account holder may not even know they're part of a scheme.
With Alloy
Spot likely mule accounts at onboarding, then monitor for risky account changes, unusual money movement, device/login anomalies, and suspicious behavior.
Scams
Without Alloy
The target is your customer, not your systems, but fraud losses can still land on your organization and diminish customer trust.
With Alloy
Catch behavioral and contextual anomalies early, even when the customer appears to be acting voluntarily. Continuous identity risk evaluation triggers real-time interdiction, like adaptive friction and step-up verification, in vulnerable moments.
Agentic AI
Automate manual reviews and fraud investigations with Alloy’s AI Assistant
Stop manually piecing together the story behind every flagged case. Alloy's AI Assistant works inside your decisioning engine to summarize risk signals, research cases, and recommend policy-aligned next steps, so investigators can resolve cases in seconds, not minutes, with a full audit trail behind every decision.
Third-party Fraud
Keep bad actors and fake identities out of your system
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Account takeover
Without Alloy
A legitimate customer's account gets hijacked, and the fraudulent activity that follows can look like ordinary behavior until it's too late.
With Alloy
Fraud Signal connects seemingly disconnected events by taking an identity-centric approach, flagging suspicious activity in real time, so you can stop account takeovers before they succeed.
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New account fraud
Without Alloy
A fraudster applies using a real individual’s personal information. They behave like a normal customer for a while, then cash out.
With Alloy
Access over 270+ global data solutions at the point of application to stop bad actors early. Alloy’s Fraud Signal model continuously monitors and scores customers from first touch through ongoing interactions, so you can flag early signs of fraudulent behavior well before funds have left your organization.
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Synthetic identity fraud
Without Alloy
Fabricated or blended identities pass standard verification because fragments of the identity are legitimate.
With Alloy
Run data sources in tandem, including third-party models that specialize in identifying fabricated or manipulated identities, to surface emerging synthetic patterns that a linear approach would miss.
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Identity fraud
Without Alloy
Stolen credentials clear basic verification because they belong to a real person.
With Alloy
Use layered solutions such as document verification, device intelligence, and bank account validation to maintain a dynamic customer profile. Suspicious changes in contact details, behavior, or account access trigger additional verification.
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Account takeover
Without Alloy
A legitimate customer's account gets hijacked, and the fraudulent activity that follows can look like ordinary behavior until it's too late.
With Alloy
Fraud Signal connects seemingly disconnected events by taking an identity-centric approach, flagging suspicious activity in real time, so you can stop account takeovers before they succeed.
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Business fraud
Without Alloy
Fraudulent actors operating behind a fake business use a bank account to access financial products or obscure the origin of funds.
With Alloy
Run KYB in parallel with KYC, AML, and fraud checks on UBOs and stakeholders to stop business fraud at origination. Continually monitor business identity, ownership, registry changes, and user activity to flag when high-risk behavior emerges.
Platform
How does Alloy stay ahead of fraud?
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Actionable AI
Fraud Attack Radar and Fraud Signal calculate risk at the portfolio and individual level. Trained across aggregated fraud behavior patterns and signals across our network of 900+ financial institutions and fintechs, our predictive intelligence moves your team from reactive to proactive detection. Alloy's AI Assistant helps fraud teams move faster by summarizing the key risk signals behind a case so investigators can triage and resolve more efficiently.
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Risk-based authentication
Hold or reject payments, freeze accounts, and block logins only when the threat warrants it. Automatic step-up verification adapts to the risk level and enables self-resolution for lower risk instances, drawing on third-party providers for multi-factor authentication, document verification, and more — all through a single SDK.
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Third-party enrichment
Orchestrate signals from the largest network of third-party fraud, identity, device, and behavioral data solutions through a single decisioning layer. Layer complementary risk insights and test vendors continuously to stay ahead of evolving fraud patterns.
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Identity-first detection
Alloy builds a unified, 360-degree profile of each customer across onboarding, authentication, account servicing, and money movement, so you're evaluating the entity behind every action, not just isolated transactions or alerts.
FAQs
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What is Alloy, and how does it support fraud prevention across the customer lifecycle?
Alloy unifies identity verification, risk-based authentication, and fraud detection software, so fintechs and financial institutions can grow with confidence. Our identity and fraud prevention platform integrates over 270 third-party data solutions into a single decisioning engine, providing automated, configurable controls that prevent fraud and enable organizations to deliver a great experience across the customer lifecycle.
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What kinds of financial institutions does Alloy help with fraud prevention?
Alloy supports financial organizations of all sizes, from global banks modernizing enterprise-wide fraud strategies to local credit unions and fast-scaling fintechs. 25% of the top 50 US banks, 7 out of the top 10 credit unions, and many of the world’s largest fintechs choose Alloy for fraud prevention today. Our platform’s flexibility makes it valuable whether you’re streamlining a complex enterprise tech stack or equipping a lean fraud team with strong, out-of-the-box controls.
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How does Alloy reduce fraud losses?
Alloy reduces fraud losses in banking by flagging high-risk applications and account activity in real time and giving teams the tools to act before it results in financial damage. A configurable policy-builder and AI-driven models adapt to shifting fraud patterns, enabling financial organizations to stop more bad actors while minimizing false declines. The result is fewer losses, lower fraud costs and operational expenses, and more legitimate customers approved. Fraud prevention turns from a cost center into a driver of growth.
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How do I integrate Alloy’s fraud tools into my platform?
Alloy provides pre-built integrations to third-party data solutions, low-code native SDK and webhooks to plug into existing workflows with minimal engineering. Our platform is accessed primarily through a fully RESTful API, supporting seamless integration with platforms and systems, including Account Opening Systems, Loan Origination Systems, CRMs, and ESB Layers. The Alloy Testing Suite lets you build and validate end-to-end policies before promoting to production, while feature flags and versioned policies make it safe to roll out gradually across channels.
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How does Alloy fit in with my CIAM?
For many financial organizations, adopting Alloy means integrating alongside existing Customer Identity and Access Management (CIAM) systems. Their CIAM handles credentials, SSO, sessions, and entitlements; Alloy adds the identity-risk layer that verifies at account opening and at high-risk touchpoints. Our risk-based authentication is enriched with third-party signals, and triggers dynamic step-up or force session expiration when risk is elevated. Together, CIAM systems and Alloy provide a layered approach to risk-based authentication and verification, enabling safe growth by protecting your bottom line without hampering the client experience.
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