ThreatMetrix Digital Identity Intelligence Leads to Elimination of Secondary Step-up Mechanism, Reducing Friction and Enhancing Customer Experience


iHerb is one of the world’s largest online stores for natural products and offers over 1,200 brands and 35,000 brand name products. They provide vitamins and supplements, grocery items, beauty products, pet products, and more to customers in 150 countries. iHerb’s advanced eCommerce platform and state-of-the-art warehouses ensure that customers receive the best quality products at roughly 30-40% less than other health food retailers.

With ThreatMetrix, iHerb can:

  • Leverage ThreatMetrix digital identity intelligence in real time to differentiate good customers from fraudsters using stolen identity credentials, spoofing, and other sophisticated forms of fraud
  • Provide a frictionless experience for trusted users
  • Streamline the fraud review process

Business Problem

In today’s digital world, fraud is evolving into more complex and sophisticated cyberattacks. However, there is a successful balance between fraud management and customer experience that companies must achieve, as managing fraud is as important as providing a frictionless customer experience. Subjecting customers to multiple fraud checks and constant verification can result in order abandonment and frustrated customers, ultimately leading to loss of revenue.

Because fraud has gotten more sophisticated, we needed a layered approach to security—having a single means of authentication is incredibly insufficient.

Joseph Chavez, Fraud Manager, iHerb

Since iHerb purchases are based more on need as opposed to impulse, their customers tend
to be more loyal. However, there is still a threshold at which customers are willing to undergo additional security measures. When iHerb noticed that customers were abandoning their orders, they realized that the secondary step-up mechanism during the review process combined with internal approvals was creating more friction than customers were willing to tolerate. iHerb knew that a single means of authentication was not sufficient and that a layered approach was needed not only to better identify fraudulent activity, but also to reduce customer friction.

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 iHerb 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.

The reason to deploy ThreatMetrix was predicated on the ability to leverage digital identity to deliver a better customer experience.

Joseph Chavez, Fraud Manager, iHerb

Key Features of the ThreatMetrix / iHerb Partnership

  • Trust Tags enable iHerb to differentiate between fraudsters and legitimate users by associating dynamically any combination of online attributes involved in accepting, rejecting or reviewing a transaction.
  • ThreatMetrix Smart ID identifies returning users that change parameters to bypass device fingerprinting. This improves returning user detection and reduces false positives. Derived from the analysis of many attributes, Smart ID generates a confidence score that detects fraudulent activity.
  • Deep connection analysis technologies give iHerb a clearer view of suspicious events, which help iHerb gain detailed network level signals for more accurate decision making.

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