The Software as a Service (SaaS) market is expanding worldwide and is expected to surpass USD 819 billion by 2030, according to Grand View Research. However, this rapid growth has also brought new challenges related to platform integrations. These connections have expanded attack surfaces and introduced vulnerabilities that enable SaaS fraud.
So, how can you protect software without compromising the user experience? The answer lies in biometrics. By integrating this technology through specialized APIs and SDKs, companies gain effective fraud protection and a strong competitive advantage.
In this article, you’ll learn about the main types of SaaS fraud, understand what APIs and SDKs are and how they work to combat these threats, and discover when it makes sense to adopt ready-made solutions instead of building everything from scratch.
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APIs and SDKs: complementary technologies for securing integrations
APIs and SDKs are common terms in the tech world, but understanding how they work together is essential for strengthening SaaS security. Application Programming Interfaces (APIs) act as communication bridges between different systems, enabling the secure exchange of information online. An example of this occurs when a user accesses an application with a Google account. In this case, an API connects the systems and validates the credentials.
Software Development Kits (SDKs), on the other hand, are sets of tools that integrate directly into the application’s code. In biometric solutions, the SDK manages selfie capture, guides users through the process, and performs basic on-device validations. The APIs then take over, analyzing the image in the cloud to verify liveness, compare the face against existing records, and securely confirm the user’s identity.
Together, APIs and SDKs form a complete authentication framework. However, building this entire structure in-house is far from simple. Developing biometric systems requires extensive research, continuous testing, high investment, and ongoing updates to defend against new attack vectors. That’s why many SaaS companies choose ready-made solutions, which speed up implementation and ensure automatic updates without requiring changes to the application’s code.
Types of SaaS fraud
Effective security starts with an accurate understanding of threats. Here are the main types of fraud that compromise SaaS platforms:
Free trial fraud
Scammers create dozens of fake accounts to access features for free and indefinitely. They exploit free trial periods without ever converting to paid subscriptions. The impact? Revenue loss and distorted metrics that undermine internal decision-making.
Subscription fraud
Criminals use stolen credit card information to sign up for paid SaaS plans. When the legitimate cardholder discovers the charge and disputes it, the company absorbs the chargeback loss, pays additional fees, and may even risk having its merchant account suspended.
Chargeback fraud
Also known as friendly fraud, customers legitimately use the service and later dispute the charge, claiming they don’t recognize the transaction. The company loses the sale amount, pays penalties, and—if this happens frequently—may have its payment account blocked.
Account takeover (ATO) fraud
Attackers gain access through leaked credentials, phishing, or brute-force attacks. The result includes compromised sensitive data, high recovery costs, and reputational damage that drives potential customers away.
See the pattern? All of these scams share one vulnerability: the difficulty of confirming who is on the other side of the screen. Passwords can be stolen, fake emails can be created, but biometric characteristics are unique and non-transferable. That's where biometric APIs and SDKs come in.
Why biometrics are a growing trend in fighting SaaS fraud
Biometrics are no longer limited to futuristic movies—they’re now a basic user expectation. According to a Visa survey, 90% of Brazilians consider biometric authentication more convenient than passwords. This shift highlights an important evolution: security and usability must go hand in hand.
The great advantage of biometrics lies in each person's individual characteristics, which are impossible to replicate. Facial recognition analyzes specific points on the face, such as the distance between the eyes, the shape of the nose, and facial contours. Fingerprinting offers precision, distinguishing even identical twins. When multiple biometric modalities are combined, protection is even higher.
In practice, biometrics directly address the most common fraud vectors. Passwordless login reduces the risk of phishing, brute force attacks, and credential misuse, making account theft more difficult. In sensitive actions, biometric confirmation prevents the use of false identities, even when access data has been compromised.
Good security practices that every SaaS company should follow
A strong fraud prevention strategy relies on robust authentication, continuous monitoring, and regulatory compliance. The starting point is adopting multi-factor authentication (MFA). Combining passwords, mobile devices, and biometrics significantly raises the security bar. Biometric authentication should be the primary option due to its convenience and speed, while additional checks can be triggered only for higher-risk operations, such as large financial transactions.
Modern solutions use adaptive mechanisms that adjust verification requirements based on access context. Login attempts from unknown devices, unusual locations, or inconsistent behavior activate additional validation layers—reducing fraud risk without harming the user experience.
Another critical aspect is continuous monitoring. Behavioral analysis helps identify suspicious patterns, such as repeated login attempts. This ongoing oversight shortens incident response times and prevents minor issues from escalating into large-scale fraud.
Compliance with standards and regulatory requirements should also be part of the strategy. The General Data Protection Law (GDPL) requires companies to adopt technical and organizational measures capable of protecting sensitive information. In this scenario, biometrics stands out for ensuring that only the legitimate owner has access to the account, without the need to store fragile passwords or easily shareable data.
Cloud-based biometric authentication platforms like BioPass ID simplify biometric adoption by eliminating the need for in-house development, high maintenance costs, and constant updates to keep pace with evolving fraud tactics and regulatory demands. With ready-to-use APIs and SDKs, companies can combine facial recognition and fingerprint authentication, apply advanced anti-fraud layers, and maintain GDPL compliance in any programming language. For technology companies, this means deploying enterprise-grade security in just weeks.
The smartest way to protect SaaS
Fraud in SaaS evolves every day. In this article, we learned how fraudulent practices, such as improper billing disputes and account theft, exploit loopholes in identity validation and threaten business sustainability.
The good news is that APIs and SDKs make it possible to add strong authentication layers without complicating development. Cloud platforms like BioPass ID deliver advanced biometric security with streamlined integration, helping SaaS companies protect access, reduce financial losses, and maintain a seamless user experience.
Want to learn more about cloud-based biometrics? Read the article Biometrics as a service (BaaS): what it is, how it works, and its benefits.
