Online fraudsters have always been a shifty bunch. The worst part is, it’s their chameleon-like nature that is part of their ongoing success, as well as every fraud managers’ nightmare.

According to the Banking Times article, “Criminals shifting to card-not-present fraud because of chip and PIN success,” they are on the move again. Data recently released by FICO, a leading provider of analytics and decision management technology, shows that across Europe card-not-present (CNP) fraud has dramatically increased, accounting for 72% of all fraud losses between March 2009 and March 2011. The big reason for this change? Chip and PIN technology, which has helped reduce counterfeit fraud by 60% over the same period.

In comparison, a similar study conducted three years ago found that ‘card present’ fraud accounted for 60% of Europe’s credit card fraud. But since European banks adopted the smartcard payment system, that number has dropped significantly over the past couple of years.

So, remaining consistent to their adaptive nature, it appears that cyber criminals have shifted their attention to CNP schemes like online fraud, targeting countries and business systems with weaker detection and prevention capabilities, said Martin Warwick, FICO’s Fraud Chief in Europe, the Middle East and Africa. (more…)

Since our inception, the online gaming industry has been a very important sector for us. This is why I am so excited that iovation’s ReputationManager 360 has been awarded Casino Journal’s Top 20 Most Innovative Technologies in Gaming Award, which recognizes outstanding fraud prevention services helping international online gaming companies stop fraud and abuse.

With criminals targeting online casinos around the clock (we’ve got the data to prove it!), gaming sites need all the help they can get to rid their tables of costly criminal activity such as credit card fraud, chargebacks, account takeover and player collusion. Leveraging iovation’s global database of over 600 million unique devices, our gaming customers gain deep insight into every device, whether it’s a PC, smartphone or tablet, attempting to login or play on their site. Using customizable business rules that allow them to assess risk at various integration points, online gaming providers will spot characteristics that are consistent with fraud and abuse to stop criminals before they strike. (more…)

As Internet advancements change the competitive landscapes of industries across the globe, fraud prevention mechanisms are essential to filter online payments and flag or stop suspicious transactions.

According to the article, “Securing Internet Payments,” 70% of all fraudulent credit card transactions originate from card-not-present (CNP) transactions. This has a substantial impact on the public’s confidence using their credit card for online transactions. Lacking the capability to prevent unauthorized transactions and associated fraud and abuse ultimately trickles down to Internet-based businesses’ bottom line revenues and profits. (more…)

As we wrap up the third quarter of 2010, iovation continues to see significant growth in the total number of device reputation checks performed for online businesses, along with the number of unique devices managed in the Device Reputation Authority (DRA) database.

With only three months remaining, iovation has already increased the annual growth rate for processed transactions by 67% over 2009. With more than 3.9 billion cumulative device reputation checks processed for e-commerce, financial, travel, gaming and online communities today, we expect to break 4 billion early in Q4.

We’ve also increased the overall number of unique devices by 110% over last year. Starting in 2006 with 5 million devices in our system, we now manage more than 390 million unique devices (including PCs, Macs, iPads, iPhones, Blackberries, Android, etc.). Surpassing 400 million unique devices is just on the cusp.

With cybercrime fraud losses more than doubling in 2009, Internet-based businesses need security solutions that allow them to proactively identify and make educated decisions on all incoming transactions. Through fraud and abuse evidence submitted by our worldwide, cross-industry subscriber base, iovation ReputationManager 360 combines device and account profiles, analytics, custom reporting, real-time business rules, device anomalies, and the experience and expertise of over 2,000 fraud analysts to help customers make quick, confident decisions on every online transaction request.

I’m very proud that iovation was included in the 2010 OnDemand Top 100, as selected by the AlwaysOn staff and other industry experts across the globe. This list recognizes companies for creating new opportunities in cloud computing and SaaS.

AlwaysOn asserts that the selected companies are developing game-changing approaches and technologies that are likely to disrupt existing markets. Selection criteria include innovation, market potential, commercialization, shareholder value and media buzz. Quoting Tony Perkins, founder and editor of AlwaysOn:

“As the digital information created by businesses continues to explode at astronomical rates, the need to store, manage, and share this information is becoming extremely challenging. By providing innovative technologies that help enterprises better compete in this new era of information complexity, the OnDemand 100 represent some of the highest growth opportunities in the private company marketplace.”

It’s an honor to be recognized by industry experts for pioneering the use of device reputation to help online businesses fight fraud and abuse. The only thing better is recognition from customers that use our service every single day. (more…)

Security experts from around the globe will soon meet in Nigeria to help boost the West African country’s parliament to fight Internet fraud and terrorism worldwide. In the article, “Foreign cybercrime experts to partner with lawmakers,” anti-cyber crime and terrorism experts from the US and other European countries will partner with members of the National Assembly to explore the extent of the fraud problem in Nigeria and discuss strategies to combat it.

Over the years, online schemes operating out of Nigeria have cost victims millions in fraud losses. The proposed conference of worldwide anti-fraud, economic and strategic Nigerian government agencies and groups will evaluate the country’s electronic payment system and ensure that measures are taken to protect public funds for a new payment system and other online transactions. (more…)