Fight Online Fraud and Abuse with iovation ReputationManager

fact sheet Vendor: iovation Inc. (www.iovation.com) Vendor's Information: About iovation ReputationManager About iovation Inc. vendor resources Credit Issuers: Stop Application Fraud at the Source with Device Reputation Online credit applicants can fool you with any number of tricks to get their stolen identities approved for credit. Learn how a device fingerprinting solution can be used to combat online credit application fraud, and how you can realize a true ROI by reducing losses and increasing operational efficiency within your fraud prevention process. iovation ReputationManager Datasheet iovation ReputationManager helps businesses stop online fraud through device identification and reputation. When a device interacts with a business – at account creation, site login, checkout, or any other point designated – iovation tells you real-time if that device has been associated with fraud, so you can allow, deny, or review transactions. Forrester Reports 321% ROI for Fortune 100 Company Using Device Reputation See how a large US-based credit issuer successfully fought back against cyber criminals. In this Forrester TEI Report, you'll see how iovation helped a Fortune 100 company identify over 43,000 fraudulent applications in the 1st year, improve operational efficiency within their fraud detection process, and experience a breakeven payback within 6 months - saving $8 million in potential fraud losses. Ntreev USA Tackles Chargebacks and Terms of Service Violations with Device Reputation MMORPG publisher Ntreev USA keeps their games safe and the fraudsters out with iovation ReputationManager. Ntreev significantly reduced chargebacks and service violations with iovation’s device reputation fraud prevention service. They uncovered over 1,000 fraudulent account users and shut out repeat offenders, resulting in incredible ROI.

All of these issues are pushing fraud prevention teams to their limits. Fortunately there are software solutions that can relieve some of the burden, make fraud prevention specialists more efficient, and help them prioritize their workloads.

Credit Issuers: Stop Application Fraud at the Source with Device Reputation Online credit applicants can fool you with any number of tricks to get their stolen identities approved for credit. Learn how a device fingerprinting solution can be used to combat online credit application fraud, and how you can realize a true ROI by reducing losses and increasing operational efficiency within your fraud prevention process.

iovation ReputationManager uses a proprietary method to track the devices that connect to its customers' Web sites—whether the device is a Mac, PC, or smartphone—in order to identify the sources of nefarious activity and keep those devices from committing more fraud. iovation was founded in June of 2004, is backed by names like Intel Capital and SAP Ventures, and has its own database of devices that have been used to commit all types of online fraud.

"Think of us as the world's biggest, baddest blacklist of bad computers," said Connie Gougler, iovation's director of marketing.

Over 300 major Web sites are using iovation’s service in five key industries that need to fight online fraud in order to survive:

1. E-Commerce, such as retail and travel sites
2. Financial services, working with credit issuers and payment services providers
3. Online communities, like social networks and dating sites
4. Gaming, such as massively multiplayer online games and virtual worlds
5. Online gambling, though not in the United States where it's prohibited by law.

Velocity is another area that can raise flags. For example, a business may deem it suspicious when a device creates too many accounts in a given timeframe, or if the device has logged in from a number of countries during a given timeframe.

iovation's customers decide how to handle the flags; the software does not automatically deny or accept an order or an account; it is based on how the customer chooses to use it. Customers often create business rules to govern how the flags are handled, such as setting them to “review” and referring them for manual verification by a member of the fraud protection team.

Customers in different industries look for different types of fraud. A retailer, for example, may set a limit on the number of orders per day that can originate from a specific device because once a product goes out the door, it's not likely to come back. But that doesn't mean people up to no good, or even the scams that they use, only stay in one industry. Shipping scams that use people in the United States to re-ship products to overseas addresses might recruit accomplices by spamming a social network or dating site. ReputationManager can see across industry sites to catch this type of activity.

For devices that are new to the iovation network, the Risk Module add-on for ReputationManager can be used to assess risk based on specific device characteristics and/or similarities to known problem devices. It then assigns a risk score to the new device.

ReputationManager includes a Web-based administration tool that users can generate on-demand reports about the types of abuse committed, new accounts opened, the number of accounts per device, transaction history, and more. Customers can log on to the administration tool at any time, and they also get a dedicated account manager, in-house training, and support from iovation when they sign up.

ReputationManager's fee structure is based on the volume of customer transactions using a daily average transaction rate.

Customers concerned with false positives (when a good machine is mistaken for a bad machine)—a common headache in fraud protection and security circles—will be pleased to know that a Forrester Total Economic Impact report that looked at ReputationManager's use by a top credit issuer found the false positive rate to be less than 1/100th of a percent, which is impressive given the increase in transactions ReputationManager examines.

iovation saw its device reputation database grow 130 percent in 2009, and it saw a 105 percent growth in incidents of fraud reported in the past year. That last number highlights the need for effective and efficient fraud protection software on an increasingly dangerous Internet.

"With false positives this low, if ReputationManager says it’s fraud, it is fraud," Gougler said.