Overview

uShip implemented the ThreatMetrix solution to accurately identify fraudulent and legitimate shipping customers and service providers. This reduced its fraud losses and also preserved its brand reputation.

uShip is the largest online marketplace that helps shipping customer easily find empty, discounted truck space for their large-item shipments. Feedback-rated service providers, from larger trucking companies to single-truck owners to freight brokers, win business by placing competing bids or accepting offers.

Since 2004, uShip has facilitated more than $750M in shipping transactions, saw 5 million shipments posted, and registered more than 700,000 service providers. While uShip’s leading-edge marketplace has given shipping customers the ability to connect with service providers, it also has the potential to attract cybercriminal schemes using stolen or fraudulent identities.

“ThreatMetrix has helped mitigate the risk of malicious accounts, chargebacks, stolen credit cards and collusion. It’s been an invaluable tool for my team.”

Shannon Scott, Senior Manager – Risk & Payments, uShip

Business Problem

As a pioneer in online shipping, uShip faces a couple of unique challenges: First, billing and shipping addresses rarely match, as shippers often ship goods to destinations other than their billing address. This made it next to impossible to use addresses as a verification mechanism. Second, trust, demonstrated through feedback scores and unbiased reviews, is one of the most important factors in a marketplace in which transactions carry risk. uShip shipping customers entrust valuable, and sometimes priceless, cargo to service providers, and the consequences are high if shipments get into the wrong hands. With uShip’s leading-edge business model, many traditional user verifications simply do not work. Therefore, uShip needed a new generation of solution that can identify fraudulent activity across identities, devices and credentials where it can help it detect:

  • Malicious service providers trying to reengage with shipping customers.
  • Stolen credit cards used to pay for shipping charges.
  • Activities related to testing credit cards.
  • Fraudsters creating multiple shipping customer and service provider accounts used for collusion.

In a competitive space with an innovative platform, providing quality service to uShip users is critical for brand reputation and user loyalty. uShip wanted a solution to solve its challenges without impacting its legitimate users’ experiences.

Accurately Detecting Legitimate Shipping Customers and Service Providers by Using Intelligent Identity Authentication

The ThreatMetrix solution allows uShip to overlay information it knows about identity with wider global intelligence such as device profiling, location information and behavior analytics, to know with certainty who its shipping customers and service providers really are. uShip leveraged the following key ThreatMetrix capabilities:

  • The ThreatMetrix Digital Identity Network analyzes trillions of connections between devices, locations, email addresses and other anonymized personal information from billions of transactions worldwide. This digital intelligence allows uShip to access identifying attributes, characteristics and behaviors associated with accounts. Data shared by organizations, along with information available from ThreatMetrix device profiling, establishes a unique Digital Identity for each shipping customer and service provider. Digital identities enable uShip to create policies for deciding which shipping requests to approve with higher levels of accuracy and confidence, because every transaction was compared against this trusted digital identity.
  • ThreatMetrix Smart ID helps uShip recognize returning devices even when cookies are deleted or disabled. Derived from the analysis of many browser, plug-in, and TCP/IP connection attributes, Smart ID generates a confidence score that detects multiple fraudulent accounts from a single device.
  • Deep connection analysis technologies give uShip a clearer view of suspicious transactions. 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 VPN, allows uShip to see the true IP address, geolocation and other attributes of each transaction.

“ThreatMetrix Proxy Piercing technology has allowed us to identify potentially problematic service providers.”

Shannon Scott, Senior Manager – Risk & Payments, uShip

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