This white paper highlights a surprising new approach to fraud prevention: remotely recognizing a fraudster’s PC (or other device). Even with identity (password/credit card) theft, the device stays the same!
Device Intelligence
Table of Contents
Online Identity Verification - is it a customer or fraudster? .................................................. 3
Device Identification and Fraud Prevention ............................................................................ 3
Device Identification Requirements ......................................................................................... 4
Device Identification and Fraud Prevention ............................................................................ 4
Device Identification Trade-Offs .............................................................................................. 5
Device Identification Approaches ............................................................................................ 6
Device Tagging as a Device Identification Strategy ............................................................... 6 Advantages of Device Tagging ........................................................................................... 6
Disadvantages of Device Tagging ...................................................................................... 6
Device Fingerprint Hashing as a Device Identification Strategy ........................................... 7 Advantages of Device Fingerprint Hashing ......................................................................... 7
Disadvantages of Device Fingerprint Hashing .................................................................... 7
Introducing ThreatMetrix Adaptive Device Identification ....................................................... 8 A Robust and Comprehensive Approach ............................................................................ 8
Advantages of Adaptive Device Identification ..................................................................... 9
Conclusion .............................................................................................................................. 10
ThreatMetrix Device Intelligence FAQ ................................................................................... 11
2 of 17 Device Intelligence
Online Identity Verification - is it a customer or fraudster? In any online transaction, businesses must confront a significant and growing challenge: how to verify a customer's identity in real-time without diminishing the customer's online experience within these constraints:
. Rampant identity theft and data breaches make user credentials and credit card information unreliable
. You cannot trust the device's network identity or IP Address due to the pervasive use of compromised devices and anonymizing proxies to hide a fraudster's true identity
. Alternative authentication techniques such as challenge and response questions, hardware tokens and phone verification are too costly, require a change to the customer's behavior or assume you have a prior relationship with a customer
In this paper we discuss the advantages of device identification for fraud prevention, common device identification technologies and the advantages provided by ThreatMetrix through a unique approach called Adaptive Device Identification.
Device Identification and Fraud Prevention Device identification is an effective identity verification method rapidly gaining broad adoption with online merchants, banking and financial institutions, and social networks. Device identification enables you to recognize a fraudster's device even when they change their identity through the use of proxies and stolen credit card or account password information. Typically four main strategies are used to apply device ID's to combat fraud:
. Device velocity. When fraudsters find a hole in your defenses, they move quickly to extract the maximum value. Creating velocity filters based on a device ID will enable you to minimize fraud costs even when names, credit card details and IP addresses are changed.
. Transaction linking. A device ID is a powerful tool for finding related transactions, eit... [download for more]
