ThreatMetrix, a fast
growing provider of fraud detection solutions that do not require
personally identifiable information (PII), today announced that
iReel.com, a leading provider of online movie rentals, is using
ThreatMetrix to eliminate real-time fraudulent credit card not present use.
According to Adam Altman, COO, iReel.com, many first time customers
would go online and order a movie in real-time with a credit card.
Unfortunately, many of those credit cards later proved to be invalid
after the transaction had occurred.
“The scale of the problem was extraordinary,” said Altman. “We were
being hit by hundreds of false credit card transactions on a daily
basis. We also had a specific instance of an affiliate who referred —
and was commissioned — on ‘new’ customers using stolen credit card
data. The affiliate was based in Serbia while the credit card charges
were in the U.S. It got to the point where credit card fraud was not
only jeopardizing our profitability; it was also threatening our good
standing with our merchant credit card payment processor. Something had
to be done. That’s when we turned to ThreatMetrix.”
Delivered as a cloud service, the ThreatMetrix Fraud Network is unique
among fraud detection solutions because it can address all three of the
major web fraud scenarios: verifying customers, authorizing transactions
and authenticating users, all in real-time without customers providing
personally identifiable information.
The ThreatMetrix Fraud Network is a web-based system that utilizes a
wide variety of device- and transaction-related data, not including PII,
to build a contextual score that delivers all the information security
pros need to make a thoughtful go, no-go decision about a customer.
Among the data gathered by the ThreatMetrix Fraud Network is deep
intelligence about the device, key transaction details and past
behavior, both on-site and globally.
“Today we use ThreatMetrix prior to credit card authorizations greatly
reducing the daily fraud rate to just a handful,” said Altman.
“ThreatMetrix gives us peace of mind and insurance against fraudsters so
that no one person or entity can easily commit massive fraud against us.
“Our products — online movies — are all digital and the order process
is fully automated,” continued Altman. “Since ThreatMetrix is a
rules-based system, I can assign various scores or create my own rules
to determine whether we should accept or reject a particular
transaction. ThreatMetrix is used as part of our automated order process
when new customers sign up. It scores people on how likely they are to
be fraudulent. I don’t really need to do a lot other than view reports
during the week to see how many orders were rejected or flagged.”
ThreatMetrix presents a contextual score to the fraud analyst and
security professional via web portal or data warehouse. Built from the
ground up to make fraud easier to analyze, report and prevent, the web
portal provides users with access to an updated fraud engine rules
editor that is context aware including the ability to instantly review
and analyze transactions based on date, score, status, or any other
attribute across the global network. It can automatically add
transaction and device identifiers to blacklists and whitelists with the
click of a button, and it can search transactions according to any
attribute. Likewise, the data warehouse aggregates information and
generates graphical reports so users can spot fraud trends early and
tune their risk models accordingly.
ThreatMetrix helps companies stop web fraud and enable e-commerce. The
ThreatMetrix Fraud Network helps online businesses verify new accounts,
authorize payments and transactions and authenticate user logins in
real-time without relying on personally identifiable information (PII).
ThreatMetrix profiles the device used in an online transaction so
companies can determine whether the users are fraudsters or customers.
ThreatMetrix device profiling goes beyond browser fingerprinting to
identify the device, bypass proxies and detect the use of botnets.
ThreatMetrix’ simple and cost-effective SaaS approach to implementation
enables companies to get results in hours or days, rather than weeks or
months. The company serves a rapidly growing customer base in the U.S.
and around the world across a variety of industries including social
networks (dating, gaming), financial services, e-commerce, affiliate
marketing and payments.