ThreatMetrix Helps Detect and Block Use of Stolen Identity Credentials in Real Time

Overview

This digital currency exchange allows users to buy and sell a variety of different cryptocurrencies and has a strong global footprint with over 10 million customers and over $50 billion exchanged in digital currency. The platform services both merchants and consumers who want to transact with digital currencies such as Bitcoin, Ethereum, Litecoin and Bitcoin Cash.

The ThreatMetrix Professional Services team collectively has over 150 years of fraud and security experience, guiding and supporting customers to achieve fraud rates that are one-third of the industry average. Their leadership in state-of-the-art identity initiatives with Internet Top 500 customers helps facilitate more business online and saves hundreds of millions of dollars each year by securing accounts and payments against the most sophisticated threats.

Using intelligence from the Digital Identity Network, the exchange could better differentiate between good customers and criminals, the moment they landed on the site. In addition, it could:

  • More accurately verify the identity of new customers wanting to open an account, to better prevent the infiltration of fraudsters attempting to launder money or finance global cybercrime.
  • Accurately detect anomalies in payments transactions that might indicate a fraudulent account takeover.
  • Identify instances of device and identity spoofing in real time.

By partnering with ThreatMetrix we have reduced fraudulent activity on the platform at account registration through to account compromises.

Business Problem

Although cryptocurrencies have revolutionized the face of payments, investments and banking, they operate in a landscape of heightened risk, bringing together several features that cybercriminals value most. Cryptocurrencies present a huge opportunity for fraudsters to launder money and finance global cybercrime, providing anonymity, security and operating outside the jurisdictions of countries, governments and banks.

This marketplace was experiencing a number of fraudulent new account creations, which could potentially be mule accounts that could be used to launder money, as well as fraudulent payments, as cybercriminals attempted to hack in to good user accounts and then transfer cryptocurrency balances out. Furthermore, reports last month indicate a surge in transactions from OFAC listed countries as fraudsters attempt to benefit from the upward trajectory of cryptocurrency.

The Power of Global Shared Intelligence to Detect High-Risk Events in Real Time

The best way to tackle complex, global cybercrime is using the power of a global shared network. The ThreatMetrix Digital Identity Network collects and processes global shared intelligence from millions of daily consumer interactions including logins, payments, and new account applications. Using this information, ThreatMetrix creates a unique digital identity for each user by analyzing the myriad connections between devices, locations, and anonymized personal information. Behavior that deviates from this trusted digital identity can be accurately identified in real time, alerting the exchange to potential fraud. Suspicious behavior can be detected and flagged for review, step-up authentication or rejection before a transaction is processed, creating a frictionless experience for trusted users.

Key Features of the ThreatMetrix / Currency Exchange Partnership

  • ThreatMetrix ID helps businesses go beyond simple device identification by connecting the dots between the myriad pieces of information a user creates as they transact online and looking at the relationships between these pieces of information at a global level and across channels/touchpoints. ThreatMetrix ID comprises a unique digital identifier, a confidence score and a visualization graph for each connecting user, which together act as a benchmark for the trustworthiness of current and future transactions.
  • ThreatMetrix SmartID identifies returning users that wipe cookies, use private browsing, and change other parameters to bypass traditional device fingerprinting tools. SmartID improves returning user detection and reduces false positives. Derived from the analysis of many browsers, plug-in, and TCP/IP connection attributes, SmartID generates a confidence score that detects multiple fraudulent account registrations from the same device.
  • Deep connection analysis technologies provide the exchange a clearer view of suspicious events. Fraudsters often attempt to hide behind location and identity cloaking services such as hidden proxies, VPNs and the TOR browser. With Proxy piercing technology, ThreatMetrix examines TCP/IP packet header information to expose both the Proxy IP address and True IP address. These techniques help the exchange gain detailed network level signals for more accurate decision making.
  • ThreatMetrix Professional Services team works closely with customers to understand business goals, evaluate security infrastructure and then rapidly implement ThreatMetrix digital identity solutions, providing ongoing services including risk systems consulting and design.

Attempts to compromise digital wallets are increasing every day. With ThreatMetrix we can accurately identify anomalies in payments transactions that indicates an account at risk of a takeover.

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