September 25, 2018
September 20, 2018
Posted September 10, 2009
Scammers Stopped Before They Reach Retailer Websites, Preventing Fraudulent Purchases and Cash Back Rewards
LOS ALTOS, CA – September 10, 2009 – Los Altos, CA – September 10, 2009 – ThreatMetrix, the leading device identification software company for reducing online fraud, today announced that Ebates, the leader in online cash back shopping, has deployed ThreatMetrix to catch would-be scammers and to maintain its positive reputation among merchant partners. ThreatMetrix was selected for its unique ability to identify fraudsters in real time before the first transaction, which they do by revealing key characteristics of computers used in account registration and for online purchasing.
Fraudsters Lose Twice
Ebates’ was attracting fraudsters who saw an opportunity to steal from the company not once but twice. Scammers were trying to use stolen credit cards to illegally purchase items from retailers. At the same time they hoped to profit from the Ebates cash back reward system. Ebates already was using sophisticated fraud detection tools to prevent rebate checks from being mailed to scammers. But ensuring its reputation with retailer partners meant Ebates needed a solution that would detect the scammer at the point of registration rather than when the transaction was being completed. Ebates also needed a system that would keep fraudsters from returning.
“Of course we never want to issue cash back on a fraudulent purchase but even more important is the need to protect our retail partners,” said Kevin H. Johnson, president and CEO at Ebates. “The best way to do this is to prevent fraudsters from registering with Ebates in the first place. ThreatMetrix enables us to provide our retail merchants with an additional layer of protection. We are now catching scammers before they reach retailer websites and reducing incidents of recurring fraud without impacting customers’ online experiences.”
Device Identification Stonewalls Criminals
ThreatMetrix device identification solutions can “pierce the proxy” to determine the actual location of a computer versus what has been reported by the device’s user. Using ThreatMetrix Ebates discovered that offshore fraudsters were signing-up through compromised computers, typically infected PCs of home broadband users in the United States, in order to hide their real location. The ThreatMetrix Global Fraud Network, which tracks more than 10 million compromised devices, also allows Ebates to eliminate fraudsters already in the system. In one example ThreatMetrix was able to prove that a single fraudster was responsible for creating 23 different accounts using fake email addresses and spoofed IP addresses based on a common device fingerprint. “New account sign-up is among the most common forms of online fraud,” said Reed Taussig, CEO at ThreatMetrix. “Device identification can help by redirecting risky accounts away from vulnerable merchants—without compromising legitimate customers. We’re excited to see companies like Ebates benefiting from what analysts say is the latest, greatest technology for online fraud prevention.”
The complete Ebates case study can viewed at: http://tinyurl.com/EbatesStopsFraud
ThreatMetrix (www.threatmetrix.com) helps companies control online fraud and abuse in real time so they can acquire more customers faster, reduce costs, and increase customer satisfaction. ThreatMetrix profiles the device used in an online transaction so companies can determine whether the users are fraudsters or customers. ThreatMetrix’ simple and cost-effective approach to implementation – SaaS or on-premise – enables companies to get results in hours or days, rather than weeks or months. ThreatMetrix serves a rapidly growing customer base in the U.S. and around the world across a variety of industries including online retail, financial, social networks, and alternative payments.