Aug 25 Chellaul Online Dating Sites Stopping Scammers with ThreatMetrix Device Identification Software
New Fraud Prevention Technology Reveals the True Location of Devices Used in Online Transactions, Enabling Online Businesses to Catch Criminals Before the First Transaction and Stop Bad Guys from Returning
LOS ALTOS, CA – August 25, 2009 –ThreatMetrix, the leading device identification software company for reducing online fraud, today announced that Chellaul Corporation, a leader in niche dating sites, has deployed ThreatMetrix to catch fraudsters before they gain access to dating site services and also to keep previous offenders from returning to the websites. Chellaul Corporation selected ThreatMetrix after a comprehensive review of device identification vendors. Chellaul chose ThreatMetrix for its ability to “pierce the proxy,” part of its comprehensive device identification capability that allows ThreatMetrix to determine the actual location of a computer versus what has been reported by the device’s user.
The Hidden Proxy System
Concealing true device location via hidden proxy systems is a common technique of cyber criminals. By using a hidden proxy scammers can pretend to be in one location, frequently a US city, when the device they are actually using to execute a fraudulent transaction is located in another country all together. Online businesses without device identification solutions are hard-pressed to keep scammers off their websites. Sophisticated criminals who are booted off a website simply return later using the same device but with new log-in credentials. ThreatMetrix device identification reveals in real-time the true location of a computer, quickly catching first-time fraudsters as well as those attempting to return to a site with new credentials.
“We knew member fraud was a problem but we couldn’t stop it,” said Samuel Bates, co-founder and CTO at Chellaul. “Scammers were coming back faster than we could kick them out because we had no way of tracking them. Device identification changes all that. We can now keep track of compromised devices so anyone attempting to log-in with one is immediately flagged. In effect we’ve moved from random guesswork to systematic identification of scammers and so far we’ve banned over 1,500 fraudulent members. The result is a more positive customer experience which we believe will trigger greater membership renewals and increased activity and satisfaction on the site.”
Safer Online Dating
Dating site members are encouraged to sign up, log in and interact with one another, but cyber criminals see this as an opportunity to exploit unsuspecting users. By masquerading as single females for instance, crooks solicit money, airplane tickets and other valuables from male members through flirtatious online communications. Industry research suggests that at least 10% of new accounts created every day for online dating sites are from scammers.
With device identification, Chellaul is able to proactively detect many scammers before they are able to engage legitimate members, and returning fraudsters are flagged instantly, even when the fraudster signs up again with new account information. Chellaul can also detect multiple scammers simultaneously when it’s found that several are logging in with different credentials but from the same device.
Despite launching in the US only eight months ago, ThreatMetrix has quickly become a leader in device identification with customers in online dating, social networks, etailers, and online payment facilitators. ThreatMetrix was recently named in Forrester’s Hot Banking Tech Companies To Watch In 2009 report.
“Victims of online fraud tend to feel very helpless,” said Reed Taussig, CEO at ThreatMetrix. “They want to fight back but unlike face-to-face crime cyber criminals are mostly anonymous. Device identification is the first fraud prevention capability to truly put an ID on the evildoer. We’re never going to catch all the world’s cyber criminals, but expansive use of device identification technology can help significantly reduce the number of machines being used to perpetrate these crimes. Once a device has been tagged by ThreatMetrix, its potential to do harm is severely limited.”
ThreatMetrix (www.threatmetrix.com) helps companies control online fraud and abuse in real time so they can acquire more customers faster, reduce costs, and increase customer satisfaction. ThreatMetrix profiles the device used in an online transaction so companies can determine whether the users are fraudsters or customers. ThreatMetrix’ simple and cost-effective approach to implementation – SaaS or on-premise – enables companies to get results in hours or days, rather than weeks or months. ThreatMetrix serves a rapidly growing customer base in the U.S. and around the world across a variety of industries including online retail, financial, social networks, and alternative payments.