The Dirt on Clean Fraud
CyberSource just released an excellent white paper titled Improving Automated Screening to Overcome Increasingly Sophisticated Fraud that’s stuffed full of valuable advice and insights by Paul Brock, one of their top fraud management consultants. You may think “clean fraud” sounds like an oxymoron but it fits as a description of fraudsters getting better (cleaner) at applying more complete and accurate personal data from stolen identities/credit cards to commit fraud. Brock’s knowledge and experience are well-worth reading in this white paper—he’s on the front lines of fighting online fraud, helping customers take and keep control over fraud 24 x 7.
You can request a copy of the CyberSource white paper here.
Brock’s premise is that because fraudsters have gotten smarter about using more and better personal data and strategies (“clean” fraud) to make it appear as though they are legitimate customers, organizations need to adopt more and better fraud prevention tools and strategies to control fraud. He points to ThreatMetrix’s Fraud Network, “combined with cross-merchant transaction histories” as providing an effective strategy for detecting “clean” fraud.
Here are just some of the valuable points that Brock discusses in this paper:
- Next-generation device identification solutions, those that offer “both browser fingerprint and packet signature inspection,” deliver a new and rich source of information about the computer/device, it’s internet connection and it’s behavior that go beyond the “ just the apparent identities involved in the transaction”
- Device identification technology opens a new avenue of correlation that can be used in fraud screening: you have an additional element that can be examined with regard to velocity, and for detecting identity morphing.
- Device fingerprinting must go beyond the surface of identifying the transacting device, to identify whether additional suspicious activities might be at work. In the process of collecting the device identification attributes, your implementation of device fingerprinting should also interrogate the device about how it is being used and how it may be under the control of another device.
There’s a ton of great information in the white paper, get a copy and learn how to stay ahead of clean fraud.
- Tom
