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Partners in Stopping Crime. ThreatMetrix Solutions Put an End to Unsustainable Fraud Losses for Online Discount Gift-Card Company Raise

By ThreatMetrix
ThreatMetrix®, The Digital Identity Company®, is the market-leading cloud solution for authenticating digital personas and transactions on the Internet. Verifying more than 20 billion annual transactions supporting 30,000 websites and 4,000 customers globally through the ThreatMetrix Digital Identity Network®, ThreatMetrix secures businesses and end users against account takeover, payment fraud and fraudulent account registrations resulting from malware and data breaches.
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Raise, the online marketplace where consumers buy and sell discounted gift cards, was launched in February 2013. By April the company found itself under a sustained barrage of cyberfraud attacks that had it facing unsustainable losses.

Resources that could’ve been put to better use were taken up with screening requests manually. Customer transactions involved multiple security questions, which meant approval of a transaction could take up to a week. Not exactly a formula for success. And, when a fraudulent transaction occurred, Raise was forced to reimburse both buyers and sellers for the fraudulent charges, doubling the loss on each transaction.

Raise turned to ThreatMetrix™ to improve cybersecurity and make the screening process more efficient. Within a year, ThreatMetrix was able to dramatically slash Raise’s chargeback rates and expedite account registration and transaction-approval processes.

“ThreatMetrix has enabled us to grow from a small startup to a national brand, and in 10 months we’ve almost quadrupled our profits,” said Eamon Murphy, director of operational risk and loss prevention, Raise. “Since implementing ThreatMetrix, we’ve had the opportunity to spend more time processing transactions and focusing on the customer experience and less time manually reviewing transactions to kick cybercriminals out the door.”

To improve security, Raise uses several ThreatMetrix solutions including:

• ThreatMetrix™ Persona ID – Establishes a persona for each user. This includes email address, credit card usage, transaction history, device, IP address and geographical location. Persona ID enables Raise to quickly identify cyberfrauds and evaluate suspicious activity on an account. For example, if a user initiates a transaction from a country in Europe but previous orders originated in the United States, Raise is alerted and can proceed accordingly.

• Customized Rules – ThreatMetrix solutions enable companies to set their own rules indicating cybercrime activity. These parameters are based on the needs and nature of each business. By implementing custom rules in real-time, Raise has been able to prevent chargebacks from the same identity. And Raise is also able to use additional screening for repeat visitors to its website who might be looking to commit cybercrimes.

Raise also leverages the power of the ThreatMetrix™ Global Trust Intelligence Network (The Network). The world’s largest trusted identity network of shared intelligence, The Network processes more than 500 million monthly transactions and protects more than 160 million active user accounts, 2,500 customers and 10,000 websites. With the aid of The Network, Raise is able to identify more users and devices than ever before to determine the level of cybercrime risk for each transaction and login.

As a consumer-to-consumer marketplace where customers both buy and sell, Raise has to be able to detect and prevent account takeover and payment fraud. Through customized rules and the powerful reach of The Network, Raise is able to strengthen its policies and more effectively protect its customers.

“Effective cybersecurity strategies are essential for every company, but it was a key component for Raise to sustain and eventually grow its brand,” said Alisdair Faulkner, chief products officer, ThreatMetrix. “Our solution’s flexibility and easy-to-use functionality enabled rapid implementation, and immediately Raise was able to prevent account takeover and collect extensive data to protect its buyers and sellers.”

At the Merchant Risk Council’s 2014 eCommerce Payments & Risk Conference (MRC Conference), the largest professional development and networking event for ecommerce payments and fraud professionals in the Americas, Eamon Murphy, director of operational risk and loss prevention, Raise and Alisdair Faulkner, chief products officer, ThreatMetrix will co-present on “Using a Global Trust Intelligence Network to Stop Account Takeover, Payment Fraud and Identity Spoofing.” They’ll offer an overview of the companies’ partnership and share key strategies used to elevate cybercrime prevention at Raise. The presentation will take place at 8:30 a.m. on Thursday, March 20 in Starvine Room 1-2 at the Aria Resort and Casino.

Attendees to the MRC which runs from Mar 17-20 in Las Vegas may also visit ThreatMetrix at booth 1010 where they can learn more about the collaboration between ThreatMetrix and Raise.

By ThreatMetrix Posted