Payments fraud typically centers on criminals using stolen credit cards to make purchases online (often referred to as card not present or CNP). Fraudsters target Internet retailers to buy goods, but many other web businesses that also take credit cards are subject to CNP fraud also—online dating sites, social gaming, and money transfer services.
Unlike in-store credit card purchases where the credit card issuing bank is liable for fraud, online merchants are fully responsible including chargebacks. Credit card associations have strict chargeback thresholds that trigger severe fines and penalties including the potential for being disbarred—even the sale of intangible goods can lead to unexpected revenue loss and potential business interruption. Intangible and digital goods sales present web merchants with a significant challenge because card not present (CNP) authorizations are done instantly, making these merchants attractive targets to automated credit card tasting attacks that attempt to test the validity of cards before on-selling.
How ThreatMetrix detects and prevents payments and transaction fraud
First generation fraud tools that rely on personally identifiable information (PII) and credit card validations such as AVS and CCV are prone to risk because it’s relatively easy for fraudsters to get their hands on personal data and stolen credit card information to pass themselves off as legitimate customers. Fraudsters use infected computers called botnets and hidden proxy servers to spoof their IP address and IP gelocation to match stolen card details to commit fraud.
First generation fraud tools designed for fraud decision windows of hours or minutes are challenged by today’s real-time authorization requirements for intangible goods and services on the internet. ThreatMetrix stops fraud the first time in real-time by combining packet signature data of the computer in conjunction with the transaction details and anonymized credentials to differentiate between a fraudster and a customer without requiring PII.
Stop chargebacks, payments and transaction fraud the first time based on device anomalies
- Go beyond IP proxy detection to detect transactions done from behind hidden proxies
- Pierce proxies to detect the true IP address and true geolocation of the fraudsters computer
- Prevent transactions originating from uncommon or suspicious computer configurations
- Detect the use of botnets attempting to automate credit card tasting using scripts
- Go beyond browser fingerprinting technologies using patent-pending packet signature profiling to uncover hidden device anomalies
Instantly recognize device, credential and behavioral anomalies based on transaction or payment context
- Detect inconsistencies in device, location and payment information using computer forensics
- Use advanced device identification technology to detect multiple transactions even when card and computer attributes are changed
- Score on custom attributes such as product type or rewards membership
- Create custom pattern and device recognition rules for transaction linking
- Leverage global network for detection of suspicious transaction behavior
Leverage improved decision management tools to help you analyze, report and control transaction fraud
- SaaS portal and powerful reporting for trend analysis and optimization
- Customizable rules engine tailored to your application and business. Easily blacklist or whitelist device and anonymous credentials
- Comprehensive API for real-time integration of scoring, reason code, device ID and underlying attributes into fraud, authentication and case management applications
Increase revenue by declining good customers less often
- Recognize customers travelling overseas based on recognizing their laptop
- Differentiate between good customers using legitimate corporate and ISP proxies and fraudsters using hidden proxies
- Float fraudulent orders to the top of the order review pile so you can spend more time talking to good customers
ThreatMetrix unique benefits include the ability to
- Reduce fraud loss and chargebacks based on real-time fraud prevention— not just monitoring
- Increase automation of order screening to reduce manual review costs and improve customer satisfaction
- Leverage global network intelligence without sharing personal identifiable information (PII).
- Integrate payments and transaction fraud prevention intelligence with the rest of your online business including new account origination and account logins behavior
- Complement your existing investment in fraud detection and case management tools
