# Prevent fraud

The Fraud Detection solution enables you to manage the fraud risk of your payments by controlling what types of payments you accept.

Every payment request goes through an authentication stage where the cardholder is verified, and an authorization stage where the issuer approves or declines the payment.
If you set the [`risk` boolean](https://api-reference.checkout.com/tag/Payments/#operation/requestAPaymentOrPayout!path=0/risk&t=request) to `true`, the payment is also assessed against your risk strategies.

You can build strategies for before authentication (pre-auth) and after authorization (post-auth) in the Dashboard.
Each decision point in the strategies gathers information about the payment and routes it to a specified outcome.

> **Information**
>
> To enable Fraud Detection, contact your account manager or [request support](https://dashboard.checkout.com/support/new?topic=case_account_management_and_access&issue=issue_account_changes).

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## How it works

1. Create your risk rules and lists.
2. Build your test risk strategies, simulate the outcomes, and then set them as your live strategies.
3. For customer-initiated payments, integrate with a Risk SDK to capture advanced fraud signals that are leveraged in our machine learning model.
4. Learn how to optimize the data in your payment requests to improve the solution's effectiveness.

> **Information**
>
> The [Fraud Detection Pro](https://www.checkout.com/docs/business-operations/prevent-fraud/upgrade-to-pro.md) offering enables you to build more complex risk strategies and unlock new or upgraded services and features.

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## Subscribe to webhooks

You can set up webhooks to be notified when a payment is reported as fraudulent:

1. [Configure your webhook server](https://www.checkout.com/docs/developer-resources/event-notifications/receive-webhooks/configure-your-webhook-server.md).
2. Subscribe to the[Fraud reported](https://www.checkout.com/docs/developer-resources/event-notifications/event-types/fraud_reported.md) webhook.

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## Next steps

- [Create risk rules and lists](https://www.checkout.com/docs/business-operations/prevent-fraud/create-risk-rules-and-lists.md): Create your Fraud Detection lists and rules using properties, operators and functions, and velocities.
- [Build and test risk strategies](https://www.checkout.com/docs/business-operations/prevent-fraud/build-and-test-risk-strategies.md): Build your Fraud Detection risk strategies using rules, lists, outcomes, and risk profiles.
- [Integrate with Risk SDK](https://www.checkout.com/docs/business-operations/prevent-fraud/integrate-with-risk-sdk.md): Integrate with a Risk SDK to maximize the efficiency of the Fraud Detection solution.
- [Optimize payment request data](https://www.checkout.com/docs/business-operations/prevent-fraud/optimize-payment-request-data.md): Provide high quality data in your payment requests to improve the effectiveness of your Fraud Detection integration.
- [Monitor risk performance](https://www.checkout.com/docs/business-operations/prevent-fraud/monitor-risk-performance.md): Monitor the performance of your Fraud Detection risk strategies.
- [Upgrade to Pro](https://www.checkout.com/docs/business-operations/prevent-fraud/upgrade-to-pro.md): Upgrade to Fraud Detection Pro to build more complex risk strategies and unlock new or upgraded services and features.
- [Verify customer addresses](https://www.checkout.com/docs/business-operations/prevent-fraud/verify-customer-addresses.md): Learn more about the Address Verification Service (AVS), a fraud prevention tool used to verify that the customer performing a payment is genuine.
- [Flag fraudulent payments](https://www.checkout.com/docs/business-operations/prevent-fraud/flag-fraudulent-payments.md): Inform Checkout.com if you or your customers identify a payment as fraudulent.
- [Retrieve fraud reports](https://www.checkout.com/docs/business-operations/prevent-fraud/retrieve-fraud-reports.md): Gain insight using the Fraud Detection Report and Reported Fraudulent Transactions Report.