WRITTEN BY

Grid Team

Jul 24, 2024

Here are the 3 top takeaways from the post:

  1. The disproportionate impact on small businesses: Small companies with fewer than 100 employees suffer the highest median loss from fraud at $141,000 per case, significantly higher than larger organizations. This underscores the critical need for accessible, cost-effective fraud prevention solutions for small businesses.

  2. Grid's revolutionary approach: Grid simplifies fraud prevention with an intuitive platform that enables businesses to design and deploy tailored workflows without technical barriers, eliminating the inefficiencies of traditional solutions.

  3. Comprehensive, adaptive protection: Grid offers an all-in-one solution that integrates multiple data providers and verification methods. This creates a multi-layered defense that continually evolves to counter new fraud tactics, turning the interconnectedness of financial systems from a vulnerability into a strength.

Our financial systems are more interconnected than ever — and fraudsters are taking advantage. These bad actors exploit vulnerabilities in financial networks, causing significant monetary losses, eroding trust, and disrupting business operations.

We’ve already talked about how Grid is redefining how businesses approach fraud prevention, shifting the balance in favor of financial institutions through orchestration and automation. In this article, we’ll explain how. But first, let’s take a look at the bigger picture of fraud intent and impact.

Today’s Fraud Landscape

Fraud exacts a hefty financial toll on businesses across the board, with organizations losing an estimated 5% of their annual revenue to fraudulent activities. The impact is disproportionately severe for smaller enterprises.

According to ACFE’s 2024 Report to the Nations, companies with fewer than 100 employees suffer the highest median loss at $141,000 per case — a figure significantly higher than losses experienced by larger organizations. This stark difference underscores how fraud can be particularly devastating for smaller entities with more limited financial buffers. The monetary impact extends beyond direct losses, as businesses must also invest in fraud prevention measures. However, smaller companies often face prohibitive costs for robust fraud protection services, with high monthly minimums and per-transaction fees. 

This financial burden, coupled with lengthy implementation processes, leaves many businesses vulnerable to continued losses while struggling to establish adequate safeguards.

The Many Faces of Online Fraud

The rapid digitization of financial services has introduced new vulnerabilities — from simple phishing scams to sophisticated hacking operations — that provide fraudsters with more opportunities to exploit weaknesses in authentication and verification processes.

E-commerce businesses, online banking platforms, and digital payment systems are particularly vulnerable targets. As these services have become more popular and accessible, they've also become prime hunting grounds for cybercriminals looking to intercept transactions, steal sensitive financial data, or trick users into revealing their personal information.

"Remember 2020?” asks Grid Creative Director Scott Luttmann. “A lot of institutions closed their doors and had to move processes online, which created a huge incentive for forces to jump into this game, to do digital signups and get access to capital."

Common Types of Online Financial Fraud
  • Identity theft: Cybercriminals steal personal information to open fraudulent accounts, make unauthorized purchases, or take out loans in the victim's name.

  • Account takeover: Fraudsters gain unauthorized access to a user's financial accounts, often through stolen login credentials, and conduct transactions or steal funds.

  • Card-not-present fraud: This involves using stolen credit card information to make fraudulent online purchases without needing the physical card.

  • Synthetic identity fraud: Criminals create fake identities by combining real and fabricated information to open accounts and conduct fraudulent activities.

  • Business email compromise: Scammers impersonate company executives or vendors to trick employees into transferring funds or revealing sensitive financial information.

The Challenge of Detection

Detecting online financial fraud presents a multifaceted modern challenge. Today’s fraud tactics evolve quickly — often mimicking legitimate transactions — making detection increasingly complex. This challenge is further compounded by the need to integrate multiple verification providers, each with distinct requirements and data sets. From credit bureaus to identity verification services, the web of necessary partnerships can overwhelm smaller institutions with limited resources. 

The sheer volume of daily online transactions creates a digital haystack where fraudulent activities can easily hide, making comprehensive monitoring a daunting task for financial institutions of all sizes. As a result, the fight against online fraud requires constant vigilance and technological adaptation.

The Importance of a Comprehensive, Agile Approach

As fraud tactics evolve, businesses need a solution that matches the sophistication of modern fraudsters while remaining user-friendly. Grid empowers organizations to fight fraud effortlessly on their own terms.

Grid was founded by industry veterans who have witnessed the vulnerabilities fraudsters exploit firsthand. These insights drive our approach to creating a seamless, scalable fraud prevention solution. We wanted to transform the interconnectedness of our financial systems from a vulnerability into a strength. 

"Our job is to remove the anxiety so our customers can focus on growing their business," says Grid Co-Founder Christian-Robert Joseph. “Our goal is to empower our customers with all the solutions so they’re always ahead of any fraudster.”

Grid functions as an orchestration hub, integrating multiple identity providers to deliver seamless verification and risk assessment in a unified platform. This system allows businesses to access a wide range of data sources and verification methods, creating a multi-layered defense more powerful than any single solution. This approach turns our interconnected world into a comprehensive shield against fraud, pivoting the vast information network that was once a weakness into a powerful asset in fighting financial crime.

This allows businesses to forge their own risk workflow success through self-service, addressing all the key challenges we mentioned earlier. Grid can help our customers adapt quickly to new threats with:

  • Real-time monitoring: Continuous surveillance of online transactions and activities to detect and prevent fraud as it happens.

  • User education: Regular education for customers and employees about the latest online fraud techniques and best practices for digital security.

  • Collaborative efforts: Sharing information about fraud patterns and techniques across the industry to strengthen collective defenses.

  • Regulatory compliance: Staying up-to-date with and implementing the latest regulatory requirements for online financial security.

What Makes Grid Revolutionary

Grid enables businesses to tailor and configure fraud detection workflows through an intuitive platform — eliminating the need for extensive technical resources.

As you build your digital fortress, Grid's automated risk decisioning works tirelessly in the background, analyzing data from multiple sources. You only pay for the fraud checks you need, and the system evolves with your business, always ready to counter new fraudster tricks. With Grid, businesses gain direct control over fraud prevention, eliminating reliance on IT teams and complex vendor integrations.

Key features that set Grid apart:

  • Self-service: Grid’s self-service model allows businesses to configure and test workflows independently, engaging with our team only when you’re ready to deploy at scale.

  • Smart decision-making: Grid automatically analyzes data from many sources, saving you time on manual fraud checks.

  • Rapid deployment: Build and customize fraud prevention workflows using pre-configured templates or tailor them to your specific risk parameters.

  • Money-saving checks: Only pay for the checks you actually need. Skip unnecessary ones to save money.

  • All-in-one solution: Access many fraud-checking tools in one place. No need to juggle multiple services.

  • Always up-to-date: Grid keeps improving to protect you against new fraud tricks.

  • Complete information: Get all the data you need about customers, income, and businesses in one spot.

  • Better credit scoring: Our Velex tool looks at cash flow and spending habits to predict loan repayment ability. This can be more accurate than traditional credit scores.

In short, Grid changes the game by offering an all-in-one solution. Instead of juggling multiple contracts and integrations, you get access to key data providers through just one contract and one integration. 

The Path Forward

As fraud tactics evolve, organizations need a proactive and comprehensive approach to prevention. Grid empowers businesses to create customized fraud-prevention workflows, fostering innovation and growth without constant fear of fraud.

In a world of constantly evolving tactics, you need a partner who's always one step ahead. The cost of fraud is too high to ignore, and the threats are too sophisticated for outdated methods. Creating a custom fraud prevention workflow is simpler than ever, freeing businesses to focus on growth without constant security concerns.

Fraud prevention is not just about mitigating risk — it’s about anticipating and neutralizing threats before they materialize. Grid provides the infrastructure to proactively combat fraud, allowing businesses to scale with confidence.

One API. One contract. One platform.

© 2025 Grid Technology, Inc. All Rights Reserved.

One API. One contract. One platform.

© 2025 Grid Technology, Inc. All Rights Reserved.

One API. One contract. One platform.

© 2025 Grid Technology, Inc. All Rights Reserved.

One API. One contract. One platform.

© 2025 Grid Technology, Inc. All Rights Reserved.