In her report titled “Best Practices in New Account Fraud Detection“, Gartner Group analyst Avivah Litan points out the benefits of several different fraud screening techniques that online businesses can use to help identify fraud at the time of account creation. She recommends companies should use Client Device Identification and identified iovation as one of the providers of that technology. This is more confirmation that the use of device-based fraud management techniques is becoming a more critical element of online fraud management strategies. There is still education, however, that needs to be done about the power of using device identifiers to create a shared device reputation network and how that can benefit companies combating fraud and abuse online.

While the report mentions that enterprises can’t rely upon unique identifiers for new accounts that have already been provisioned, in fact they can when those identifiers are used as part of a shared reputation network, or if the new account is being created by a fraudster that has visited the site before but has supplied different personal information. In a shared device reputation network such as is provided by iovation’s ReputationManager^TM service, businesses can benefit from the experiences of their peers and detect devices that have been used for fraud in the past even if that is the first time the business has ever seen that device. Much as has been proven over time with shared information about the validity of credit card data, shared device reputations can provide a strong counter to repeat fraudulent behavior.

iovation is the leader in providing a shared device reputation infrastructure. We currently maintain over 30 million device reputations and process more than 2 million reputation requests per day from our customers. In addition, 2.1 million (7%) of the devices we track for our customers are seen at more than one customer site. This validates the tremendous power in being able to gain insight into the reputation of a device even if it is the first time you have ever interacted with that device online.

This entry was posted on Monday, February 18th, 2008 at 12:32 pm and is filed under Financial Services, Online Communities, Online Retail. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.