Harnessing Intelligence from the ThreatMetrix Digital Identity Network Streamlines Payment Process for Merchants and Reduces Fraud Losses


North American Bancard is a leader in the payments industry, offering solutions across credit card processing, eCommerce/gateway, mobile payments, and cash advances to more than 310,000 merchants nationwide. The company was founded with the core values of building innovative technology and delivering superior customer service to businesses. NAB is able to customize solutions to fit the individual requirements of its merchants; offering competitive pricing, monthto-month service agreements with no cancellation fees, and live customer service.

With ThreatMetrix, NAB can:

  • Identify patterns of fraudulent new account creations. In a particular case, over 80 attempts were made that used the same email, account name and telephone combination in quick succession.
  • Stop logins from devices demonstrating anomalous behavior, such as those using hidden proxies or appearing on a blacklist.
  • Leverage global shared intelligence to more accurately identify fraudulent accounts and monitor account closures.

We are working in a very dynamic environment with many business acquisitions and strong growth. With ThreatMetrix being part of our fraud decisioning, we have seen a significant difference in the level of fraud captured.

Demitrious Baird, Director of Risk, North American Bancard

Business Problem

NAB is a payment processing company that strives to offer a seamless experience by working between merchants and banks. They deal with several thousand new account application requests every month; It’s crucial for them to ensure that only genuine merchant applications are approved with minimal friction while fraudulent ones are gated.

Typically, fraudulent applicants try to open new merchant accounts on behalf of seemingly legitimate businesses, showcasing different products. Buyers are then duped into buying goods or services that don’t exist. In addition, fraudsters sometimes use accounts to monetize stolen credit cards, making fraudulent payments to their own “merchant” account and stealing the money before the genuine customer registers the card as stolen, resulting in high chargebacks.

On the other hand, once genuine merchant accounts are set up, NAB needs to ensure that the merchants get a frictionless experience at login by accurately differentiating between fraudsters and legitimate customers in real time.

North American Bancard needed a way to analyze and compare current event data to past behavioral profiles such as trustworthiness of connecting devices, location and behavior anomalies. Events demonstrating anomalous behavior could then be flagged for review or directly rejected based on associated risk.

Harnessing the Power of Global Shared Intelligence to Detect High-risk Events in Real Time

The best way to tackle complex, organized 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 North American Bancard, to potential fraud. Suspicious behavior can be detected and flagged for review, step-up authentication, or rejection before a transaction is processed, minimizing friction for trusted users.

When I look at the external vendors we use for fraud detection, I can say that we get the biggest benefit from ThreatMetrix.

Demitrious Baird, Director of Risk, North American Bancard

Key Features of the North American Bancard / ThreatMetrix Solution

  • ThreatMetrix SmartID identifies returning users that wipe cookies, use private browsing, and change other parameters to bypass device fingerprinting. This improves returning user detection and reduces false positives. Derived from the analysis of many browsers, plug-in, and TCP/IP connection attributes, Smart ID generates a confidence score that detects multiple fraudulent account registrations or log in attempts.
  • Deep connection analysis technologies give North American Bancard 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 North American Bancard gain detailed network level signals for more accurate decision making.
  • ThreatMetrix ID bridges online and offline data elements for each transacting user and goes beyond device-based analysis, grouping various other entities based on complex associations formed between events, consistently identifying a person irrespective of changes in devices, locations or behavior.

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