Widespread Online Fraud Halted By Checks
Published: Wednesday, February 20, 2008 Online-Casinos.com
WIDESPREAD ONLINE FRAUD HALTED BY DEVICE REPUTATION CHECKS
Iovation has stopped up to 10 000 fraudulent activities a day for its clients
The Portland, Oregon-based Iovation online security specialist says its device reputation technology checks out more than a billion transactions across the Internet every year...and stops over 10 000 fraudulent activities a day.
The company expects that number to nearly double by the end of 2008, making a trust infrastructure for the Internet for customers in online retail, financial services, Internet gaming and online communities a necessity.
"These significant milestones reaffirm the value of stronger, more effective fraud management tools that enable online businesses to reduce the rate of fraud and abuse that occurs every twenty-four hours," said Greg Pierson, founder and CEO of the company.
"As Internet businesses look to strengthen arsenals to combat more sophisticated fraud schemes, Iovation alerts customers each time a computer associated with fraud or abuse tries to make a transaction or log onto one of our client's websites. Providing the device intelligence needed to stop over 10 000 fraudulent activities each day further validates the impact Iovation is having in the fight against online fraud and abuse."
Using patented technology, the company's Reputation Manager fraud management service uniquely identifies devices that have been used for fraud and abuse, and creates a web of association that provides fraud managers with deeper insight into account and devices relationships that exist within their network and among their industry peers.
"While overall fraud rates have dropped, the sophistication of fraudulent activity has risen, partly because of major weaknesses in the user authentication schemes available to online financial service and e-commerce providers," said George Peabody, director, Emerging Technologies Advisory Service at payments research firm Mercator Advisory Group.
"For financial transactions to succeed within social networks, solid reputation and trust are essential. The same holds for mobile banking and payments. Device fingerprinting and the behavioral monitoring of those devices as delivered by iovation promise to keep downward pressure on fraud and abuse."
