November 19, 2018
Every Business is a Digital Business
Globally connected mobile devices are rapidly becoming the predominant way to acquire products and services and manage financial transactions worldwide. Mobile transactions now make up over half of all the transactions we see in the ThreatMetrix Digital Identity Network, particularly driven by the popularity of mobile banking.
Digital interactions are infiltrating every aspect of daily life and have transformed the way that we do business from a location-centric, in-person model to a global, not-present, digital model. This rapid digitization of business and consumer transactions has also facilitated an exponential rise in cybercrime. As organizations scramble to keep up with consumer demand for omnipresent, frictionless online experiences fraudsters have capitalized on the gaps and loopholes in fraud defenses.
In a post-breach world, where sensitive personal information is widely available, static identity assessment methods alone are no longer an effective way to verify a person’s true identity. This is compounded by the fact that traditional authentication methods, including credit scoring and address verification, perform poorly in a cross-border eCommerce world. These inadequacies have fuelled ever more sophisticated cyber and fraud attacks through the deployment of botnets and malware that manage to bypass traditional security defenses by mimicking trusted user behavior.
Digital-savvy Millennials are driving the pace of change and establishing the precedent for overall consumer experiences that include frictionless access to accounts, streamlined payment services and easy signup procedures for new accounts, all via mobile. Failure to meet these expectations has hefty consequences for organizations, such as deflection to a competitor, loss of revenue, poor customer lifetime value, and bad reviews.
Understanding the digital DNA of users and their unique online footprint can knit together trusted digital identities that online merchants can rely on and that can’t be faked by fraudsters. This enables fraud, security, risk, compliance and customer engagement departments to have a unified view and risk model of a user across all digital channels and lifecycle and engagement. Leveraging the power of digital identities to establish trusted behavior unique to each user is the best way to rout out fraudsters and hackers while stopping good customers and users from getting caught in the net.
Digital Businesses Need Digital Identities
Digital identities are made up of a combination of device, identity, behavior and threat information. Any one of these four attributes in isolation cannot verify true identity. True digital identities come to life as information is dynamically combined and analyzed in the context of each and every transaction enabling businesses to know with great certainty who their users truly are.
The Identity Conundrum
As user interactions shift from physical to digital, the concept of identity in the digital age is being fundamentally reimagined. What constitutes an identity in the age of online commerce? Are we who our username and password say we are, or are we built from the complex way we interact and behave online? How do our online selves merge with our offline ones?
To compound the problem, the jigsaw pieces of an individual identity are being collated and compiled by fraudsters to create near-perfect stolen pictures, which no longer belong solely to their true owner but are scattered across the globe having been bought, sold and traded by criminal networks.
Fraudsters capitalize on the new blood of fresh credentials, acting fast with mass identity testing bot attacks, using validated credentials to takeover trusted user accounts, open fraudulent new ones, and make a vast swathe of bad payments with stolen credit card data.
So much so that someone trying to validate their identity with a credit bureau following a breach can sometimes find themselves locked out of their own file, no longer able to confirm their true identity because the file has been so manipulated by their fraudulent “twin.”
The challenge for many digital businesses is that they are trying to solve the problem of individual use cases in silos, plugging one gap while others remain vulnerable. At the same time, without a holistic view of your end user across their entire customer journey, it becomes impossible to validate their identity at each touchpoint.
Digital Businesses Need Digital Identities
The ThreatMetrix Digital Identity Network helps businesses streamline fraud and authentication management by more accurately distinguishing fraudsters from genuine customers in real time, throughout the customer journey.
By harnessing real-time global shared intelligence from billions of transactions ThreatMetrix stitches together a user’s true digital identity, analyzing the myriad connections between devices, locations, identities and past behaviors.
Understanding for example: is the person transacting using a device that has been stolen, compromised or infected with malware? What is a usual pattern of behavior for this user? Has the transaction size or velocity increased and is this consistent with trusted user behavior? Is the location of this transaction consistent with what has been seen before? Are VPNs, proxies or TOR being used? Is this device participating in a known botnet attack?
Through understanding true digital identity, fraudulent behavior becomes far easier to detect. The digital footprint of a fraudster is often markedly different to a trusted user, because they go to great efforts to mask their devices, location and true identity, often using stolen credentials that flag as a mis-match when compared to the trusted profile of the genuine user.
This creates a near-frictionless online experience for good users, who are recognized accurately and in real time, reducing false positives and manual review rates.
The ThreatMetrix Digital Identity Network
ThreatMetrix is committed to helping businesses unite all aspects of user behavior into one unique anonymized digital identity, adopting a layered approach to effectively identify up to 95% of trusted, returning users and more accurately detect fraud.
The ThreatMetrix Digital Identity Network detects and blocks billions of dollars of potential fraud loss in real time. The Network is the largest and richest in the world, leveraging global shared intelligence from millions of daily consumer interactions including logins, payments and new account originations, across thousands of global businesses.
ThreatMetrix ID is the technology that brings this Digital Identity Intelligence to life; helping businesses elevate fraud and authentication decisions from a device to a user level as well as unite offline behavior with online intelligence.
ThreatMetrix ID helps businesses go beyond just device identification by connecting the dots between the myriad pieces of information a user creates as they transact online and looking at the relationships between these pieces of information at a global level and across channels/touchpoints. ThreatMetrix ID comprises a unique digital identifier, a confidence score and a visualization graph for each connecting user, which together act as a benchmark for the trustworthiness of current and future transactions.
The ThreatMetrix Digital Identity Network Comprises Three Components
Digital Identity Intelligence: The best crowdsourced intelligence from the world’s largest Digital Identity Network
- Web and Mobile Device Intelligence: Device identification, detection of device compromises across web and mobile, device health and application integrity.
- True Location and Behavior Analysis: Detection of location cloaking or IP spoofing, proxies, VPNs and the TOR browser, detection of changes in behavior patterns, such as unusual transaction volumes, changes to velocity or frequency of transactions or new use of remote access software
- Identity and Link Analysis: Defining patterns of trusted behavior by combining identity and transactional metadata with device identifiers, connection and location characteristics.
- Bot and Malware Threat Intelligence: Actionable threat detection for Malware, Remote Access Trojans (RATs), automated bot attacks, session hijacking, and phished accounts, combined with global threat information such as known fraudsters and botnet participation.
Dynamic Decision Platform: Using Digital Identity Intelligence to make the most accurate and timely decisions.
- Behavioral Analytics (ThreatMetrix Smart Rules): Advanced behavioral analytics rules which enable better understanding of legitimate user behavior and more accurately detect genuine fraud.
- Machine Learning (ThreatMetrix Smart Learning): A clear-box approach to machine learning that integrates digital identity intelligence with Smart Rules to produce optimized models with fewer false positives.
- Workflow and Orchestration: Ability to integrate external data sources into the ThreatMetrix decision engine as well as access pre-integrated third-party services for transactions that require additional assurance / exception handling.
- Case Management: Enabling continuous optimization of authentication and fraud decisions by monitoring, updating and isolating transactions that require additional review, providing a smarter, more integrated way to handle increasingly complex caseloads with shrinking resources.
Smart Authentication: Combining frictionless RBA with low-friction SCA for an enhanced customer experience
- Mobile App Security: Detect breaches to the application itself and verify the trustworthiness of the mobile device.
- Device Binding: Leverage the trust of existing devices, using Strong Device ID and Carrier ID, to avoid repetitive authentication.
- Multi-factor Authentication (MFA) Secure Notification: Push notifications to the user’s mobile device for low friction authentication
- Biometrics: A comprehensive range of FIDO-compliant, low friction, password-free authentication strategies.
The power of the ThreatMetrix Digital Identity Network means that no matter how detailed a fraudster’s faked identity may be, it can never compete with the dynamic, intricate and connected nature of true digital identity. This provides organizations with the confidence and security they need to identify fraudsters from trusted users time and time again, protecting brand reputation, lifetime value and long-term revenue.