The Number Insight API v2 offers fraud prevention features to protect users from fraudulent activities, particularly phone number-related scams. It uses artificial intelligence to analyze phone data and user behavior, providing a fraud score that indicates the likelihood of fraudulent behavior associated with a specific phone number. The API also detects SIM card swapping, which is a form of fraud where a bad actor tricks a mobile network operator into transferring a victim's phone number to a new SIM card they control. By incorporating these features into account sign-up or registration processes, organizations can preemptively identify potential red flags and create a safer environment for their users.