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Posted October 13, 2016
RANCHO PALOS VERDES, CA — (October 13, 2016)
World’s largest digital identity network delivers significant financial value to global customers
ThreatMetrix® revealed the extent of the Digital Identity Network’s impact on thwarting cybercrime: The Network has prevented $15 billion in annual fraud loss during the last 12 months. At the Digital Identity Summit, ThreatMetrix executives discussed with leading e-commerce, financial industry and government security leaders the increasing business and revenue impact of fraud and the reality that it can be combatted.
Cybercrime is growing rapidly — Q2 2016 saw a 350 percent increase in new account registration fraud, compared to the same quarter in 2015. An average of 5 million bot attacks take place every day on retail transactions large and small, as well as on applications for loans, bank accounts or credit cards; these transactions add up to more than $600 billion a year. The ThreatMetrix Digital Identity Network is able to stop these attacks by using identity testing to instantly differentiate between genuine transactions and fraudulent ones, providing tangible benefits to banks and businesses — to the tune of more than $15 billion in fraud loss savings in the past year.
The ThreatMetrix Digital Identity Network uses anonymized global digital entities to fight cybercrime by mapping associations among people, their devices, account credentials, phone numbers, physical addresses and the businesses with which they interact. Using this information to identify persona relationships, ThreatMetrix has pioneered Digital Identity Graph technology, introduced in February, to provide necessary context to stop attacks in real time, enabling businesses to quickly and precisely identify potential fraud and cyberattacks without compromising customer privacy. The network is fortified with each transaction, as it stitches together a comprehensive customer portrait across devices, identity elements and sites, allowing ThreatMetrix to more accurately map the identities of online entities worldwide.
“The strength of the Digital Identity Network is in its ability to instantly recognize when consumer information is used out of context without compromising the identities of end users,” says ThreatMetrix Chief Product Officer, Alisdair Faulkner. “Backed by the power of our network — which analyzes more than two billion transactions a month, businesses and consumers can rest assured that their information will be secure, without the need for additional authentication steps that slow down transactions and inconvenience customers.”
ThreatMetrix reduces the high cost of fraud and friction
While it is essential that these transactions be kept secure, fraud prevention must be conducted in a way that mitigates customer inconvenience. Fraud and friction can have severe consequences for businesses and banks. According to a May study conducted by First Annapolis, a management consultant and mergers and acquisitions advisory firm, one year’s worth of friction and fraud is estimated to cost US banks $14.9 billion in lost relationship value.
ThreatMetrix helps banks and businesses strike a balance by ensuring that protective measures are in place to prevent fraud without creating friction for customers.
“Our research with First Annapolis indicates that fraud and friction can have devastating repercussions for banks; those results can and do extend to online retail businesses,” says ThreatMetrix Chief Marketing Officer Armen Najarian. “Our Digital Identity Network is becoming an industry standard by allowing us to thwart millions of attacks each year without creating unnecessary inconvenience, thereby keeping consumers safe while helping them maintain positive relationships with the businesses with which they interact.”
The full First Annapolis study can be downloaded here.
To learn more about the Digital Identity Graph, visit the website here.
ThreatMetrix®, The Digital Identity Company®, is the market-leading cloud solution for authenticating digital personas and transactions on the Internet. Verifying more than 20 billion annual transactions supporting 30,000 websites and 4,000 customers globally through the ThreatMetrix Digital Identity Network®, ThreatMetrix secures businesses and end users against account takeover, payment fraud and fraudulent account registrations resulting from malware and data breaches. Key benefits include an improved customer experience, reduced friction, revenue gain and lower fraud and operational costs. The ThreatMetrix solution is deployed across a variety of industries, including financial services, e-commerce, payments and lending, media, government and insurance.
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