iovation presents fighting cnp fraud - april 2016
TRANSCRIPT
WEBINAR
FIGHTING CNP FRAUD5 THINGS TO CONSIDER
April 2016
Eddie Glenn, Product Marketing Manager
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Our story starts with a stolen identity…
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Within just a few days…
charged over $5,000 in online purchases
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One of the financial institutions contacted the victim...
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This bank used iovation for fighting online fraud and began investigating…
USING DEVICE INTELLIGENCE TO FIGHT CNP FRAUD
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Every device tells a story.
Am I authorized for this account?
Where am I located? Do I have a fraud history?
What other devices does this consumer have?
How many accounts have I accessed?
Am I hiding from detection?
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Fighting CNP fraud requires deep device
intelligence.
RULE
1
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Which device is this?
Is it associated with bad devices?
Are there real time risk indicators?
Is it associated with abuse?
DEEP DEVICE INTELLIGENCE:BEYOND DEVICE RECOGNITION
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EVIDENCE
GEOLOCATIONAGE-BASED
ANOMALY
DEEP DEVICE INTELLIGENCE
RISK PROFILE
VELOCITY
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The devicehad a history…
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Fighting CNP fraud requires powerful analytics.
RULE
2
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Devices Per Account
Account Velocity
100+Transaction detail fields are searchable
Subscriber transaction detailsDevice attributes
Device associationsDevice history
Device evidence
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Device Details
130+Device Details Collected
Subscriber transaction detailsGeolocation
Device BrowserDevice hardware
Device OS
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Device history and device associations are critical.
RULE
3
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of transactions originate from devices first seen over a year ago.15%
CNP fraud crosses personal identities, devices, accounts, businesses, and can occur
over long periods of time.
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Separate personal identity from device identity.
RULE
4
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If personal identities are used for device identification, then stolen identities will contaminateyour device intelligence making it useless for catching CNP fraud
Who are the victims?Who are the fraudsters?
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.
The case grew larger and more complex…
It grew from a local case to a federal one
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• Bank Fraud• Social Security Fraud• Stolen Mail• Stolen Identity• Possession of document
making implementations
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Fraud evidence was placed
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Use a device intelligence network that tracks granular
fraud evidence. Everyone benefits.
RULE
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(Except fraudsters)
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Evidence shared across entire network
Over 45 Different Evidence Types
500k+Confirmed fraud reports are
placed each month
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From video surveillance, authorities obtained a face photo.
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The surveillance photo was matched to a photo on social media.
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The fraudster was arrested.
If you’re going to commit CNP fraud, don’t use Facebook.
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How does our CNP fraud story end?
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15 identity theft victims
20 major retailers targeted with CNP fraud
60 credit apps
$70K restitution
$100K in projected losses1
PersonFraud Ring
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EMV WON’T MAKE FRAUDSTERS GO AWAY.
They are shifting their focus from POS to CNP because of new standards.
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Percent increase in CNP fraud
79%Percent increase in
CNP fraud
133%
SOURCE: AITE GROUP, 2015
I N T E R N A T I O N A L C N P F R A U D R A T E SL O S S E S A F T E R I M P L E M E N T A T I O N O F E M V
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POS FRAUD
CNPFRAUD
$10B
$19B
2014 2018 2014 2018
$6B $5B
SOURCE: JAVELIN, 2015
BASED ON U.S. DATA
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POS FRAUD
CNPFRAUD
$10B
$19B
2014 2018 2014 2018
$6B $5B
SOURCE: JAVELIN, 2015.
BASED ON U.S. DATA
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Leverage deep device intelligence
Utilize insightful analytics
Leverage granular fraud evidence
Separate personal identity from device identity
F I G H T I N G C N P F R A U D5 T H I N G S T O C O N S I D E R
Device history and device associations are critical.
THANK YOU
Q&A
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U P C O M I N G E V E N T S
May 15-18, 2016Las Vegas, Nevada
May 23-26, 2016Orlando, Florida