Velocity checks are fraud and security prevention methods that trace the frequency of particular transactions or tasks in a system. If the frequency passes a predetermined threshold, it triggers an alert or blocks the system from performing further actions.

How Do Velocity Checks Work?

  1. Identifying relevant data points: Multiple techniques exist to examine historical data and identify which activities indicate fraudulent behavior in every setting, such as machine learning.
  2. Making a velocity rule: This may comprise any combination of timeframes and data points based on conclusions reached in the first step.
  3. Use the velocity rule: The service runs continuous velocity checks to examine consumer behavior.
  4. A pre-set result is activated when the predetermined conditions in a velocity check are satisfied. For instance, asking users to re-enter passwords, allotting a higher risk score to the consumer, or blocking a customer from completing a transaction through transaction tracking.

Afterward, data analysts may add, amend, or remove these rules as required.

Examples of Velocity Check

Velocity Checks Applications