December 5, 2018
November 29, 2018
Crowdfunding heralds a new platform of money lending and investment. Fledgling businesses, charities and social campaigners can tap into the power of a shared economy via the global reach of online forums, accessing a potentially limitless groups of investors and philanthropists.
Crowdfunding has fundamentally switched the way a project can be financed. Large loans from bank managers or sympathetic family members have been replaced with multiple small investments from like-minded people. Crowdfunding is used by business startups, community projects and charity campaigners, to individuals fulfilling a lifetime ambition or paying for a loved one’s medical treatment. Incentives and rewards are equally varied:
Although crowdfunding is still seen as an alternative finance model, it is currently thought to raise more than $5 billion for projects worldwide.
The complex interplay between the crowdfunding platform and the exchange of money/rewards between donors and fundraisers provides fertile ground for cybercriminals. The fraud risk primarily comes from:
ThreatMetrix layered approach validates the end user’s true digital identity through information related to devices, threats, identity and behavior. At the same time, ThreatMetrix real-time decision analytics platform provides additional insights to differentiate trusted customers from potential fraudsters. This knowledge allows crowdfunding organizations invaluable insight into who their customers really are and whether their transactions can be trusted. Underpinning this solution is world’s largest Digital Identity Network built on shared intelligence from over 1 billion transactions per month from more than 4,000 of the world’s most trusted brands.
ThreatMetrix offers real-time fraud detection and prevention solutions which allow crowdfunding organizations to minimize fraud attacks. The ThreatMetrix platform enables them to:
Reduce Fraudulent Registrations: Fraudsters often use false and stolen information to register new accounts. If fraudsters can convince crowdfunding platforms that they are legitimate fundraisers, they could potentially access limitless funds from unsuspecting donors. ThreatMetrix provides a risk-based fraud detection solution that analyzes the complete digital identity of the campaign creator to detect the use of stolen identities, suspicious devices, IP addresses, locations, credit cards and more.
Protect Against Account Takeover: ThreatMetrix leading account takeover prevention solution helps crowdfunding platforms:
Prevent Payment Fraud: Crowdfunding sites must make instant decisions about card-not-present (CNP) interactions. ThreatMetrix detects stolen credit cards in real time by combining device attributes, malware detection and sophisticated analytics with the user’s identity and transaction details. This real-time credit card fraud analysis offers crowdfunding organizations an additional layer of protection to reduce the costs of credit card fraud while protecting the online experience for legitimate customers.
Since implementation, ThreatMetrix has helped crowdfunding platforms lower fraud, reduce losses and deliver an enhanced experience for trusted users. This has been supported by the following key capabilities: