What facilitates better fraud detection in Stripe when billing address signals are used?

Using billing address signals significantly enhances fraud detection by contributing to improved fraud model estimates. Billing addresses provide critical information that can help determine the legitimacy of a transaction. When Stripe’s fraud detection models analyze transactions, they incorporate data like billing addresses to assess whether the details match other data points associated with the customer, such as shipping addresses, card details, or historical transaction behavior.

The integration of billing address signals helps the model to better differentiate between fraudulent and legitimate activity. This is because fraudsters often provide mismatched information compared to genuine customers. Consequently, when the fraud model can draw on accurate billing address information, it improves its capacity to produce reliable estimates, allowing for more effective risk assessment and reducing false positives in potential fraud alerts.

In contrast, options related to real-time transaction monitoring, standard transaction validation, and manual review processes, while relevant in the broader context of fraud prevention, do not directly enhance the model estimates in the same way. They serve different roles within the fraud detection ecosystem and are not specifically about utilizing billing address signals to refine the fraud model's accuracy.