ThreatMetrix US Patents Press Releases Reduces Horror Show of Fraudulent Credit Card Not Present Use with ThreatMetrix Fraud Network

Posted March 31, 2010

LOS ALTOS, CA.  –  March 31, 2010 – ThreatMetrix™, a fast growing provider of fraud detection solutions that do not require personally identifiable information (PII), today announced that, a leading provider of online movie rentals, is using ThreatMetrix to eliminate real-time fraudulent credit card not present use.

According to Adam Altman, COO,, many first time customers would go online and order a movie in real-time with a credit card. Unfortunately, many of those credit cards later proved to be invalid after the transaction had occurred.

“The scale of the problem was extraordinary,” said Altman. “We were being hit by hundreds of false credit card transactions on a daily basis. We also had a specific instance of an affiliate who referred – and was commissioned – on “new” customers using stolen credit card data. The affiliate was based in Serbia while the credit card charges were in the U.S. It got to the point where credit card fraud was not only jeopardizing our profitability; it was also threatening our good standing with our merchant credit card payment processor. Something had to be done. That’s when we turned to ThreatMetrix.”

Delivered as a cloud service, the ThreatMetrix Fraud Network is unique among fraud detection solutions because it can address all three of the major web fraud scenarios:  verifying customers, authorizing transactions and authenticating users, all in real-time without customers providing personally identifiable information.

The ThreatMetrix Fraud Network is a web-based system that utilizes a wide variety of device- and transaction-related data, not including PII, to build a contextual score that delivers all the information security pros need to make a thoughtful go, no-go decision about a customer. Among the data gathered by the ThreatMetrix Fraud Network is deep intelligence about the device, key transaction details and past behavior, both on-site and globally.

“Today we use ThreatMetrix prior to credit card authorizations greatly reducing the daily fraud rate to just a handful,” said Altman. “ThreatMetrix gives us peace of mind and insurance against fraudsters so that no one person or entity can easily commit massive fraud against us.

“Our products – online movies – are all digital and the order process is fully automated,” continued Altman. “Since ThreatMetrix is a rules-based system, I can assign various scores or create my own rules to determine whether we should accept or reject a particular transaction. ThreatMetrix is used as part of our automated order process when new customers sign up. It scores people on how likely they are to be fraudulent. I don’t really need to do a lot other than view reports during the week to see how many orders were rejected or flagged.”

ThreatMetrix presents a contextual score to the fraud analyst and security professional via web portal or data warehouse. Built from the ground up to make fraud easier to analyze, report and prevent, the web portal provides users with access to an updated fraud engine rules editor that is context aware including the ability to instantly review and analyze transactions based on date, score, status, or any other attribute across the global network. It can automatically add transaction and device identifiers to blacklists and whitelists with the click of a button, and it can search transactions according to any attribute. Likewise, the data warehouse aggregates information and generates graphical reports so users can spot fraud trends early and tune their risk models accordingly.

About ThreatMetrix

ThreatMetrix helps companies stop web fraud and enable e-commerce. The ThreatMetrix Fraud Network helps online businesses verify new accounts, authorize payments and transactions and authenticate user logins in real-time without relying on personally identifiable information (PII). ThreatMetrix profiles the device used in an online transaction so companies can determine whether the users are fraudsters or customers. ThreatMetrix device profiling goes beyond browser fingerprinting to identify the device, bypass proxies and detect the use of botnets. ThreatMetrix’ simple and cost-effective SaaS approach to implementation enables companies to get results in hours or days, rather than weeks or months. The company serves a rapidly growing customer base in the U.S. and around the world across a variety of industries including social networks (dating, gaming), financial services, e-commerce, affiliate marketing and payments.  For more information, visit or call 1-650-625-1451.

© 2010 ThreatMetrix.  All rights reserved. ThreatMetrix and the ThreatMetrix logo are trademarks or registered trademarks of ThreatMetrix in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.

Media Contacts:

Dan Rampe
Tel: 650-625-1451, ext. 122

Kevin Wolf
Tool Guy PR

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