Online credit applicants can fool you with any number of tricks to get their fraudulent or stolen identities approved and confirmed for credit, while leaving you holding the bag for losses. Instead of verifying and re-verifying ID information of fraudulent applicants, consider this: Verifying the reputation of the device (or computer) being used to submit the application. When a fraudster connects to your business, the computer being used can be instantly evaluated for its criminal history.
If you know the device has a fraud history, the detail of checking ID specifics is supplemental. You don't have to spend time, resources, and money checking ID information - you know the source is suspect and you can block the transaction immediately. Device fingerprinting coupled with the device's reputation helps identify the bad guys in the acquisition channel, so you don't have to rely on other fraud detection tools that drive up the cost to decision an application.
w h i t e P a p e r
credit issuers:
Stop Application Fraud At The
Source With Device Reputation
A White Paper by iovationOverview
Online credit applicants can fool you with any number of tricks to get their fraudulent or stolen identities approved and confirmed for credit, while leaving you holding the bag for losses. You can spend time, money and duplicative tool verifcations in an attempt to protect your business. But these fraudsters are clever, they will repeatedly hit you for approved applications, and they can disguise themselves in a thousand ways.
Instead of verifying and re-verifying identity information of fraudulent applicants, consider this: Verifying the reputation of the device being used to submit the application. When a fraudster connects to your business, the computer being used can be instantly evaluated for its criminal history.
If you know the device has a history of fraud, the detail of checking identity specifics is supplemental. You don't have to spend time, resources, and money checking identity information - you know the source is suspect and you can block the transaction immediately. Right now. Before you have put your business at risk.
Device fingerprinting coupled with the device's reputation helps identify the bad guys in the acquisition channel, so you don't have to rely on other fraud detection tools that drive up the cost to decision an application. Working in conjunction with existing fraud detection techniques, a device fingerprinting solution gives you a more complete solution for fighting identity theft and other forms of fraud that plague the financial services industry.
In this white paper, we will tell you more. You will understand what new and innovative techniques and solutions can be used to combat fraud, and how you can realize a true return on investment by reducing losses from fraud exposure and increasing operational efficiency within your fraud prevention process.
Credit Issuers: Stop Application Fraud At The Source With Device Reputation page 2Why you need more than conventional methods of fraud detection
The Internet has revolutionized the way people apply for credit. Unfortunately, it has done the same for cyber criminals. For example, fraudsters who used to be forced to go to a bank or apply for credit cards in person now can hide behind the Internet's anonymity to apply for credit, with more speed to approval and lower risk of getting caught.
The financial, banking, and credit industries have been proactive in terms of data protection. But they know the times are changing and the antes have been upped. They are responding to the challenge of more personal and financial data being all too accessible over the Internet. They know criminals are now working together to devise more complex schemes to circumvent conventional methods of fraud detection such as credit reports, IP addresses and geo-location validation, home-grown block lists, and out-of-wallet questions. As a result, fraud detection tools that were once your strongest lines of defense against Identity theft are becoming less effective (see Figure 1).
Credit Reports OFAC Check Black ListsOut of Wallet Questions Mobile Phone Number ValidationIP Address / Geo-location Verification Separate ID Queries
Figure 1: With more personal information accessible over the Internet, fraudsters are getting better at defeating conventional methods of fraud detection.
It is not just credit approval-it is the gateway to more fraud
For fraudsters, credit is not the goal; it is the entry point for all other types of fraud including account takeover, chargebacks and money laundering. If you can't immediately identify fraud in the acquisition channel, you need to deploy highly effective solutions that work in conjunction with existing tools to expand your fraud detection capabilities. A device identification / fingerprinting solution such as TMiovation ReputationManager allows you to identify fraudulent applications early in the process, providing a comprehensive and efficient solution for fighting identity theft and other forms of fraud that continue to plague the financial services industry.
Credit Issuers: Stop Application Fraud At The Source With Device Reputation page 3Online applications pose a high risk
When it comes to online application fraud, identity theft is the top concern for toda... [download for more]
