New Report Finds Finance Execs Plan to Increase Spend on Online Fraud Prevention Systems
Posted June 2, 2009
Reliability, Cost and Compatibility Cited as Chief Considerations When Evaluating Fraud Prevention Solutions
LOS ALTOS, CA – June 2, 2009 – ThreatMetrix, a leader in device fingerprinting, today announced the results of new research detailing the extreme risks facing etailers, social networks and financial services companies as they seek to combat online fraud and ease customer concerns regarding the safety of web-based transactions. In the study more than two-thirds of participant’s ranked online fraud as a serious or critical problem and one-third claimed that preventing the spread of fraud was their number one priority. The survey, which targeted companies with more than $500 million in annual revenue, was performed by Gatepoint Research in conjunction with ThreatMetrix.
Cyber Criminals Getting Smarter
Cyber crime is not a new phenomenon but what continues to change is the cleverness of criminals. Botnets that allow criminals to remotely manipulate customer computers have fraud and security professionals worried. Everyone appreciates the magnitude of the problem. More than half of the respondents to Gatepoint Research’s survey indicated that botnets are an urgent or significant priority and a full 100% expressed concern over the increasing sophistication of fraudsters. Yet, the best way to resolve the issue remains unclear. Despite the availability of automated fraud detection tools half the finance execs surveyed by Gatepoint Research still track fraudulent activity manually and among those using automated tools, the types of solutions varied widely.
“When speaking to companies about their fraud prevention plans a word I frequently hear is ‘escalation,’” said Reed Taussig, CEO at ThreatMetrix. “Companies are genuinely concerned over the ability of cyber criminals to disrupt their businesses. This is why three-quarters of executives profiled by Gatepoint Research said they plan to significantly increase the amount of time and money they will spend on fraud management in the coming 18 months.
To Catch a Cyber Criminal
Fraud prevention software is a mixed bag and there is no ‘silver bullet’ capable of solving every problem. Subject-matter experts participating in the Gatepoint Research report named reliability, cost and compatibility with IT systems as their top considerations when evaluating fraud prevention tools. Among the available solutions device fingerprinting has emerged as an effective and highly affordable new defense against on-line fraud and is easily integrated into existing fraud prevention and back office systems. Rather than looking at the behavior of the fraudster, device fingerprinting profiles the device used in an electronic transaction to determine if the transaction is legitimate or a fraudulent. These systems, which easily integrate to other fraud solutions and can be deployed in a matter of days, are very effective in stopping cyber criminals before the fraudulent transaction can occur. To learn more about device fingerprinting, interested parties can view the following presentation delivered by ThreatMetrix at the recent Finovate financial applications conference in San Francisco.
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.