July 14, 2017
Real-time passive authentication to minimize credit card eCommerce fraud
Online merchants use ThreatMetrix® to instantly authenticate legitimate customers while stopping cybercriminals armed with stolen identities and scripted bot attacks.
Consumers shy away from anything less than a frictionless online shopping experience. This presents a tough balancing act. Set fraud controls too loosely and risk credit card chargebacks. Set them too strictly and lose sales.
ThreatMetrix passively authenticates online guests at the point of sale. Our powerful analytics block threats and recognize identities by the ever-changing associations between people their devices, locations, account credentials and behaviors.
When it comes to online shopping, consumers have plenty to choose from. They want smooth, efficient service, and they demand security, but they don’t like being treated like cybercriminals. Unfortunately, step-up authentication impedes their experience and often makes them feel this way.
ThreatMetrix passive authentication recognizes legitimate customers, enables a personalized experience and frictionless checkout.
ThreatMetrix helps Ebates and our online merchant partners reduce first-time and recurring fraud incidents without impacting our customers’ online experiences.
— Kevin H. Johnson, President and CEO, Ebates
Most retailers have strategies in place to reduce chargebacks, but fraud prevention and convenience are typically competing objectives. Fraud policies set too loosely can put profits at risk, but setting them too tightly can also have adverse affects on sales conversion rates, revenue, operating costs related to manual reviews and potentially even lost customers or lower lifetime revenue. To avoid chargebacks, some companies block cross-border transactions altogether because they are just too fraught with fraud and costly to manage.
ThreatMetrix helps prevent chargebacks by using digital identities to instantly recognize legitimate customers and flag suspicious transactions before payments are processed. In real time, the device, location and identity of a user are analyzed in the context of behavioral history. Threats to the device, application and session are identified to ensure that only legitimate and secure transactions get processed. This drives cost savings and operational efficiencies, and frees up valuable human resources to better serve customers.
We integrated ThreatMetrix four years ago. Since then, we’ve consistently managed to maintain a low chargeback rate and high conversion despite what fraudsters throw at us.
— Matthew Davies, Badoo
Cybercriminals relentlessly attack online merchants with stolen identities, user credentials and scripted bot attacks. When they are recognized, fraudsters are often equipped with answers to challenge questions and other personally identifiable information to bypass step-up authentication, making static authentication highly unreliable.
Dynamic authentication based on device, location, identity and threat intelligence provides high-fidelity authentication in real time. Behavior intelligence identifies patterns of normal behavior, and ultimately identifies behaviors that deviate from the norm, which can then be flagged as high risk.
Our business intelligence platform gives us a real competitive advantage by helping e-commerce companies increase revenue. ThreatMetrix provides an essential part of our intelligence, giving us a tool that is highly effective in mitigating risk.
— Philipp Bock, Founder and CEO, Allpago International
Mobile and cross-border transactions are growing rapidly. Yet, these transactions are generally rejected at a high rate because retailers don’t recognize returning customers or block broad geographies where fraud is common. Fraudsters attempt to hide behind location and identity cloaking services, such as hidden proxies, VPNs and the TOR browser.
To detect compromised accounts, it’s important to understand customer login attempts across web and mobile channels (even when cookies are deleted or disabled) and to recognize suspicious devices and locations.
ThreatMetrix is always one step ahead of the cybercriminals who are evolving and adapting their strategies. ThreatMetrix technology is state of the art and the fact that it continues to innovate and release new capabilities is key for us.
— Clemens Henle, Chief Operating Officer, markt.de