October 16, 2018
WePay offers integrated payment solutions to software platforms and businesses to enable them to sell to merchants while owning merchant relationship and experience. WePay has a non-traditional business model, so risk and compliance are a large part of the value that WePay provides to its partners.
“We want to remove friction from the payment experience, meaning we collect less information about the transaction. ThreatMetrix helps us supplement our knowledge with passive intelligence that is highly predictive of risk.”
WePay accepts liability for fraud and risk while partners can white label payment services to offer a more streamlined brand experience. With ThreatMetrix, WePay can:
- Integrate robust data and insights into its own business models to provide effective fraud detection
- Supplement partner data with intelligence from the Digital Identity Network
- Passively authenticate payment transactions, with minimal impact on merchants or payers
Cybercriminals are continually looking for new ways to infiltrate global digital businesses. They are more adept than ever at posing as legitimate users with the easy availability of stolen identity credentials on the dark web. Traditional methods of identity verification have become virtually ineffective as complete identities are available for sale, or can be stitched together from previous breaches.
New businesses, niche and alternative finance providers and businesses processing multiple payment transactions are key targets, as fraudsters attempt to capitalize on chinks in security defenses. In order for WePay to accept the fraud and risk for its partners’ online payments, it had to build a robust fraud and security platform that was able to detect anomalous or high-risk behavior before transactions were processed.
Relying simply on data from partners or merchants did not give WePay the detail it needed to protect against:
- Account takeovers using stolen, but legitimate credentials
- Collusion fraud
Leveraging ThreatMetrix Digital Intelligence to Enhance Fraud Detection
WePay was keen to ensure that its fraud and security solution did not unnecessarily disrupt the payment process for either merchants or end users but provided a seamless brand experience end-to-end. The ThreatMetrix solution passively authenticates transactions in real time using intelligence from the ThreatMetrix Digital Identity Network, eliminating unnecessary friction.
“ThreatMetrix was the partner we were looking for. Not only does it have robust fraud prevention capabilities but it delivered these to us in such a way that we were able to integrate data in our own risk engine and machine-learning models.”
The Power of Shared Intelligence
The ThreatMetrix solution is underpinned by the Digital Identity Network, which harnesses 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. WePay could understand the complete context of every transaction so that suspicious behavior was detected in real time.
Digital Identities are created by combining the following key intelligence:
- Device profiling – Device identification, device health and application integrity, as well as detection of location cloaking or spoofing, (proxies, VPNs and the TOR browser).
- Threat intelligence – Harnessing point-in-time detection of malware, Remote Access Trojans (RATs), automated bot attacks, session hijacking and phished accounts, then combining with global threat information such as known fraudsters and botnet participation.
- Identity data – Incorporating anonymized, non-regulated personal information such as user name, email address and more.
- Behavior analytics – Defining a pattern of trusted user behavior by combining identity and transactional metadata with device identifiers, connection and location characteristics. Every event can be analyzed in the context of this behavior pattern and historic context globally
WePay’s business innovation in the payment services space has been supported by the following key ThreatMetrix capabilities:
- ThreatMetrix Smart ID helps recognize a returning device even when cookies are deleted/disabled. Derived from the analysis of many browser, plug-in, and TCP/IP connection attributes, Smart ID generates a confidence score that helps WePay identify when fraudsters are using the same device to set up a fraudulent merchant account and make fraudulent purchases.
- WePay substantially benefits from hundreds of variables from ThreatMetrix that flag different types of risk and inconsistencies.
- ThreatMetrix deep connection analysis technologies give WePay 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. ThreatMetrix accurately detects the use of these technologies and, in the case of proxies and VPNs, allows WePay to see the true IP address, geolocation and other attributes of each event.
“ThreatMetrix provides us with the data, insights and visibility we need in order to make instant, informed risk and underwriting decisions.”