November 14, 2017
When this large restaurant chain launched its mobile app, which gave customers the opportunity to bypass lines by ordering and paying for food on their mobile devices, it wanted to ensure that its straightforward and customer-centric ethos was mirrored online. However, it needed to ensure that incentives and rewards were not abused, and that the introduction of an online payment method did not expose the company to fraud.
With ThreatMetrix, it can:
- Accurately identify organized fraud rings attempting to test identity/credit card credentials before they compromise trusted user accounts
- Modify rules within the ThreatMetrix policy engine quickly and simply to tackle evolving fraud patterns
- Maintain the integrity of the mobile app platform for trusted repeat users
- Confidently continue to promote offers and incentives for new account registrations
As an incentive to sign up for an online account, this restaurant chain offered a complementary food item with every new registration to the app. It set a maximum threshold for accounts per user, but quickly found this was being abused as customers were signing up for multiple accounts from their device to take advantage of free food.
Although this was hitting the company’s bottom line, a bigger problem soon emerged as a result of the mobile app accepting online payments. The company started seeing a high volume of account takeover attempts and chargebacks, which appeared to indicate an infiltration of organized cybercriminals who were attempting to log in to customer accounts with stolen/spoofed identity credentials, and test stolen credit card data.
This restaurant chain needed a robust fraud solution that could accurately detect anomalous or high-risk behavior at login, as well as provide better visibility into a user’s true digital identity to understand whether they were abusing free incentive offers.
Leveraging ThreatMetrix dynamic digital identity intelligence, this restaurant chain can accurately detect and stop fraudulent and abusive activity in real time without creating friction for legitimate users.
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.
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 this restaurant chain to incentive abuse and 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 Solution
- ThreatMetrix Smart ID 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 detects multiple sign in attempts of user’s attempting to take advantage of free incentive offers as well as fraudsters attempting to takeover existing user accounts.
- Deep connection analysis technologies give 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.