Financial Services & Consumer Credit: A Primary Target For Fraud
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How iovation ReputationManager works ™
Nothing beats fraud like iovation
Financial Services & Consumer Credit: A Primary Target
for Fraud
While online services offer unprecedented efficiency and convenience for financial institutions and consumers alike, they are also highly susceptible to fraud and abuse. The anonymity of the Web makes consumer identification difficult and thereby making, accountability nearly impossible. Consumers are able to apply and obtain credit online, transfer funds, trade commodities and pay bills by simply clicking a few buttons from anywhere at any time. Unfortunately, in the online environment, it is difficult to discern real customers from fraudsters. Online fraud typically begins with fraudsters applying for and setting up multiple credit accounts using stolen or synthetic identities, usually through a single or a few PCs. The fraudsters are often very careful about making sure that their accounts appear unrelated to each other. These accounts are then used as part of fraudsters illicit activities to buy goods online or to transfer/withdraw funds. Financial institutions must monitor and control fraud during the entire account lifecycle— from account acquisition to account maintenance.
Spectrum of fraud during credit account lifecycle
Identity Theft Application Fraud
Change Password Change Address
Account Acquisition
Chargebacks Bust out fraud Funds transfer
Account Maintenance
A woman was indicted in Florida for identity theft and pleaded guilty to federal charges involving her obtaining a fraudulent driver’s license in the name of the victim and obtaining five department store credit cards in the victim’s name and charging approximately $4,000 on those cards. -U.S. Department of Justice
How iovation ReputationManager works ™
Fraudsters are typically repeat offenders, who use multiple online profiles to target financial institutions. Shutting down an abuser’s account doesn’t stop the activity. Online fraudsters simply set up a new account using a new identity and continue their abusive behavior.
Solution: iovation ReputationManager iovation ReputationManager is a proven real-time and forensic fraud management solution that provides financial institutions a new layer of device intelligence for screening online customer transactions. The solution offers operational efficiency and scalability for profit optimization. iovation focuses on the fraudsters’ device as the nexus of their online activities and exposes them by accurately identifying their device(s) across the Internet. When a financial institution detects fraud against a device or account, the system helps them quickly expose all associated devices and accounts and flag them at once to prevent repeat offences. The fraud information can be shared with other subscribing institutions for pro-active protection against cyber criminals.
The table below highlights the benefits cited most often by existing iovation customers:
Increase profitability
Increase operational efficiency
protect site reputation
Exposes fraudsters in real-time
√
√
√
Shuts down the revolving door of fraudsters
√
√
Reduces operational costs of screening for fraudsters
√
√
√
√
Reduces payment and chargeback fraud
√
√
Enables geographic risk assessment
√
√
Can share evidence of known device fraud among institutions
√
√
√
√
√
Benefits
With virtually no false positives, it does not impact good customers
Helps with existing and emerging regulatory requirements
√
How iovation ReputationManager works ™
1
At customer login and/or prior to any high-risk transaction, the subscribing financial institution site requests the reputation of a device by providing customer application/account and device identifiers without any personally identifiable information (PII).
2
iovation ReputationManager associates the application/account ID and the device information and sends the information to the Device Reputation Authority(DRA) platform for analysis.
3
The DRA exposes all abusive and suspicious associations between devices and applications/accounts—even across multiple subscribing sites—without sharing any PII.
4
Within the DRA’s repository, associated devices and applications/accounts can be flagged when negative evidence (such as identity theft, or chargeback) is submitted by a subscribing site.
5
The iovation ReputationManager subscribers can then protect their online services and legitimate customers by making decisions based on their own criteria for allowing or rejecting customer transactions.
For more information on iovation ReputationManager and other iovation Reputation Services to combat online fraud & abuse visit www.iovation.com.
Sales inquiries: [email protected] General business and partnership inquiries: [email protected] 111 SW Fifth Avenue, Suite 3200 Portland, Oregon 97204 +1 503.224.6010 www.iovation.com
Legal Notice: © iovation 2007 All rights reserved. All product or service names mentioned herein are the trademarks of iovation or their respective owners. DS 200711/01
Nothing beats fraud like iovation
Financial Services & Consumer Credit: A Primary Target
for Fraud
While online services offer unprecedented efficiency and convenience for financial institutions and consumers alike, they are also highly susceptible to fraud and abuse. The anonymity of the Web makes consumer identification difficult and thereby making, accountability nearly impossible. Consumers are able to apply and obtain credit online, transfer funds, trade commodities and pay bills by simply clicking a few buttons from anywhere at any time. Unfortunately, in the online environment, it is difficult to discern real customers from fraudsters. Online fraud typically begins with fraudsters applying for and setting up multiple credit accounts using stolen or synthetic identities, usually through a single or a few PCs. The fraudsters are often very careful about making sure that their accounts appear unrelated to each other. These accounts are then used as part of fraudsters illicit activities to buy goods online or to transfer/withdraw funds. Financial institutions must monitor and control fraud during the entire account lifecycle— from account acquisition to account maintenance.
Spectrum of fraud during credit account lifecycle
Identity Theft Application Fraud
Change Password Change Address
Account Acquisition
Chargebacks Bust out fraud Funds transfer
Account Maintenance
A woman was indicted in Florida for identity theft and pleaded guilty to federal charges involving her obtaining a fraudulent driver’s license in the name of the victim and obtaining five department store credit cards in the victim’s name and charging approximately $4,000 on those cards. -U.S. Department of Justice
How iovation ReputationManager works ™
Fraudsters are typically repeat offenders, who use multiple online profiles to target financial institutions. Shutting down an abuser’s account doesn’t stop the activity. Online fraudsters simply set up a new account using a new identity and continue their abusive behavior.
Solution: iovation ReputationManager iovation ReputationManager is a proven real-time and forensic fraud management solution that provides financial institutions a new layer of device intelligence for screening online customer transactions. The solution offers operational efficiency and scalability for profit optimization. iovation focuses on the fraudsters’ device as the nexus of their online activities and exposes them by accurately identifying their device(s) across the Internet. When a financial institution detects fraud against a device or account, the system helps them quickly expose all associated devices and accounts and flag them at once to prevent repeat offences. The fraud information can be shared with other subscribing institutions for pro-active protection against cyber criminals.
The table below highlights the benefits cited most often by existing iovation customers:
Increase profitability
Increase operational efficiency
protect site reputation
Exposes fraudsters in real-time
√
√
√
Shuts down the revolving door of fraudsters
√
√
Reduces operational costs of screening for fraudsters
√
√
√
√
Reduces payment and chargeback fraud
√
√
Enables geographic risk assessment
√
√
Can share evidence of known device fraud among institutions
√
√
√
√
√
Benefits
With virtually no false positives, it does not impact good customers
Helps with existing and emerging regulatory requirements
√
How iovation ReputationManager works ™
1
At customer login and/or prior to any high-risk transaction, the subscribing financial institution site requests the reputation of a device by providing customer application/account and device identifiers without any personally identifiable information (PII).
2
iovation ReputationManager associates the application/account ID and the device information and sends the information to the Device Reputation Authority(DRA) platform for analysis.
3
The DRA exposes all abusive and suspicious associations between devices and applications/accounts—even across multiple subscribing sites—without sharing any PII.
4
Within the DRA’s repository, associated devices and applications/accounts can be flagged when negative evidence (such as identity theft, or chargeback) is submitted by a subscribing site.
5
The iovation ReputationManager subscribers can then protect their online services and legitimate customers by making decisions based on their own criteria for allowing or rejecting customer transactions.
For more information on iovation ReputationManager and other iovation Reputation Services to combat online fraud & abuse visit www.iovation.com.
Sales inquiries: [email protected] General business and partnership inquiries: [email protected] 111 SW Fifth Avenue, Suite 3200 Portland, Oregon 97204 +1 503.224.6010 www.iovation.com
Legal Notice: © iovation 2007 All rights reserved. All product or service names mentioned herein are the trademarks of iovation or their respective owners. DS 200711/01
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