Alloy introduces actionable AI tool, Fraud Attack Radar

New AI fraud detection tool helps Alloy's clients stop fraud attacks before they escalate

In this article, we're going to discuss:

• What is Alloy's Fraud Attack Radar?
• What makes Fraud Attack Radar different from other AI-powered fraud prevention tools?
• Key benefits of Fraud Attack Radar
• Real results: Fraud Attack Radar in action

Introducing Fraud Attack Radar

AI is evolving rapidly and bringing with it both excitement and concerns around how fraudsters are leveraging it to target financial institutions and fintechs. 

So, let’s get straight to the point: this isn’t just another fraud prevention tool making vague artificial intelligence (AI) promises. There are plenty of AI-powered fraud tools in the market that solely alert you to suspicious activity — that’s critical but not new. Think of it like a home security system that only sounds an alarm when a burglar breaks in but doesn’t call the police. An alert helps, but real protection requires action.

Today, Alloy is launching a groundbreaking solution that leverages AI to identify fraud attacks, proactively alert clients, and stop fraudsters. Fraud Attack Radar provides insights into why the attack is happening, who’s behind it, and, most importantly, how to respond effectively. 

The core philosophy behind Fraud Attack Radar is to provide clients with actionable AI. The tool sits within Alloy’s platform, so clients are swiftly notified and can immediately make updates to their workflows to contain the threat. 

What is Alloy’s Fraud Attack Radar?

Fraud Attack Radar solves the hardest problem in fraud prevention: precisely detecting and stopping fraud, including patterns that neither you nor your fraud vendors have seen before.

When a large-scale fraud attack is suspected in your origination funnel, Alloy proactively sends clients an alert and enables clients to take immediate action within the platform to triage, investigate, and improve their workflows.

If we continue the home security system analogy, Fraud Attack Radar not only alerts you of a break-in, it also secures the burglar’s entry point and sends help. 

What makes Fraud Attack Radar different from other AI-powered fraud prevention tools?

Actionable AI fraud prevention

Most AI solutions available today can alert FIs and fintechs when they detect fraud, but can’t help the organization take immediate action to stop the fraud. Alloy takes it a step further. 

After Fraud Attack Radar alerts a client that they may be dealing with a large-scale fraud attack, clients can turn on their pre-approved fallback “safe mode” policies to quickly contain the threat and introduce step-up verification to add friction — allowing them to keep their funnel open while they work with Alloy to test and implement long-term changes to optimize their workflows moving forward. 

Because the Fraud Attack Radar sits within Alloy’s end-to-end Identity and Fraud Prevention Platform, clients can seamlessly close the loop between their decisioning and action. 

Industry-wide onboarding intelligence

AI models are only as good as the data they are built off of. Alloy has spent the last decade working to prevent, detect, and mitigate fraud. As a result, we’ve developed unique insights into both common and emerging fraud attack strategies targeting the financial services industry. 

We use these insights to inform the Fraud Attack Radar so it can adapt to new fraud tactics as they evolve and accurately identify both known and novel large-scale fraud attack patterns.

Combined supervised and unsupervised learning models

Alloy’s Fraud Attack Radar combines both anomaly detection and time series methods approaches, leveraging AI/ML to detect and stop fraud proactively without excessive noise from high false positive rates. This helps clients distill signals from noise. For example, other AI tools may needlessly alert you when there is an influx of applicants due to a marketing campaign, which looks the same to raw UML anomaly detection algorithms. However, Fraud Attack Radar is able to accurately detect the characteristics of a fraud attack, so your operational teams don’t waste time investigating behavior that isn’t truly risky.

Portfolio-level analysis 

Fraud Attack Radar is designed to work at a portfolio level, looking for trends across an entire population of applications instead of trying to predict whether a specific individual/applicant looks fraudulent. This approach helps clients detect a sudden increase in pressure or clusters of novel behavior. When Fraud Attack Radar is combined with Alloy’s Entity Fraud Model, which works at an individual/person level, clients are able to see a holistic view of risk across their entire portfolio. 

Key benefits of Fraud Attack Radar

• Reduce fraud losses: Contain attacks before they escalate.
• Speedy detection and mitigation: Get real-time notifications and take prompt action.
• Minimized disruption: Keep the onboarding funnel open while addressing threats.
• Seamless deployment: No complex configurations and no long setup process — clients can adopt and start seeing benefits immediately.
• Accurate alerts: Stop fraud attacks without a high false positive rate.
• Easy triage, clean-up, and remediation: Following the detection of an attack, Alloy provides a list of entities identified as contributing to the attack and targeted recommendations to their workflow, which they can implement to help with their manual review cleanup.

Real results: Fraud Attack Radar in action

Fraud Attack Radar isn’t just theory — it’s been battle-tested in real-world scenarios, delivering proactive fraud detection when it matters most. In field testing, our model successfully identified fraud attacks and alerted clients before they even realized they were under attack.

Here’s what our clients saw during testing:

• Detecting a wide range of attacks – Fraud comes in many forms, and Fraud Attack Radar proved its ability to spot diverse attack patterns. From applicants using shared IP addresses and caps-locked applications to high-volume email domains and auto-generated emails, our model flagged suspicious activity across multiple fronts.
• Stopping fraud rings in their tracks – Fraud Attack Radar detected a coordinated fraud ring in Massachusetts, where dozens of applications originated from the same IP address, allowing financial institutions to take immediate action.
• Catching fraud before it escalates – Fraudsters don’t strike all at once; they test vulnerabilities first. Our tool successfully identified early-stage fraudulent activity — stopping small-scale probing before it turned into a full-scale attack.

Stay on top of suspicious activity with Fraud Attack Radar

Fraud isn’t going away — but with the right technology, financial institutions and fintechs can stay ahead of fraudsters. Fraud Attack Radar gives you the power to detect and stop fraud attacks before they cause significant damage.