paladin vendor report - blog. · pdf file2017 paladin vendor report 3 | [email protected]...

paladin vendor report2017

2017 paladin vendor report

2 | [email protected]

At Paladin Group, we’re deeply immersed in the fraud solution

landscape. It’s our day-to-day work to understand the latest

solution providers, services, and tools. As the number of

solution providers and services grow, merchants’ options

become complex and varied. As experts, we believe it’s our

job to serve as an authority on these products and their

strengths, areas of opportunity, and enhancements. Together,

we can help service providers and merchants do a better,

more well-informed job mitigating the risks that come with

accepting payments in an omni-channel, card-not-present

(CNP) world. With that said, the 2017 Paladin Vendor Report

is purely informational. Paladin has not written any opinions,

given any reviews, or is displaying any thumbs-up (or down)

about the information contained in the report.

Paladin focused on several key areas

during the discovery process. (Not all

are applicable to every vendor, but

for consistency, we examined each

of the following wherever relevant.)

PRODUCT - The vendor’s

current functionality.

SERVICES - Available offerings

to help merchants during integration

and throughout their client lifecycle,

including reporting.

BUSINESS DEVELOPMENT - Current

partnerships and channels for direct

and indirect customers.

MARKETING - The verticals vendors

are focusing on and messaging

SALES - A breakdown of market

segments.

TECHNOLOGY - How the product

works from a technical perspective.

Introduction

mailto:[email protected]



Third-party fraud prevention platforms provide protection and

flexibility to not only prevent fraudulent transactions but also

increase acceptance of legitimate orders. They help scale

fraud teams by managing, or helping to eliminate, the manual

requirement associated with transactional order review. Often,

the foundation of the prevention platform is a customizable

rules engine designed and maintained to identify historically

high-risk combinations of order attributes and decision upon

them on behalf of the merchant. There’s a growing trend

within the industry to increasingly rely on machine-learning

to train models, thereby reducing the manual management

required. Another popular trend is the “chargeback guarantee,”

which can absolve merchants of much or all of their fraud-

coded chargeback receipts.

Fraud Platforms & Decision Engines




Participating Vendor: Fraud Platforms & Decision Engines:

MaxMind

Vendor Overview

MaxMind is a privately held Waltham, MA-based company. Founded in 2002, MaxMind

provides both IP geolocation and IP intelligence, as well as online fraud intelligence.

MaxMind offers minFraud, which is their fraud intelligence product. MaxMind has over

7,000 merchants utilizing their minFraud service throughout their online and partner

networks. Along with providing fraud prevention and geolocation solutions to a global

marketplace, they also help clients reduce chargebacks, false positives, review rates,

and loss rates. Their GeoIP-based products boast a customer base of over 5,000

companies. A client can work with them on pricing for a flat fee, or per transaction.

Solutions & Functionality

The MaxMind minFraud Network screens over 175 million minFraud queries monthly

from over 7,000 merchants, equating to over 2 billion transactions over the course

of a 12-month look-back period for data modeling and scoring. minFraud combines

machine-learning algorithms with heuristics (practical methodology) and manual

review to create MaxMind’s riskScore and IP risk score. These scores are based on

reputational data points such as IP, email, billing and shipping address, and geolocation

data. The riskScore and IP risk score are utilized both by merchant clients as well as

vendor partners. Within the minFraud brand, there are three different services:

• minFraud Score: Provides a riskScore on the transaction, as mentioned

above, as well as an IP risk score (this service has also replaced their

Proxy Detection service).

At a Glance:

3rd Party API Capabilities Payment GatewayCapabilities

OperationalSupport

ATO DetectionCapabilities

Account/ClientManagement

Device FingerprintCapabilities

Historical SandboxTesting

Non-ProductionReal Time Rules Testing

ProfessionalGuidance/Services

User BehaviorCapabilities

Guaranteed ChargebackLiability

Pre-AuthorizationFunctionality

Fraud Engine/Platform Functionality

Machine Learning


OperationalSupport











Machine Learning


OperationalSupport











Machine Learning


OperationalSupport











Machine Learning


www.maxmind.com



• minFraud Insights: Provides the above plus additional data for

review and MaxMind’s GeoIP2 Precision Insights data points.

• minFraud Factors: Provides the same data as minFraud

Insights, adding more data to the process and incremental

sub-score outputs.

minFraud also has an option to support device tracking via

MaxMind’s minFraud Device Tracking Add-On. The Device

Tracking Add-On, which is JavaScript-based, identifies devices as

they move across the internet. If someone (most likely a fraudster)

changes IP or proxies while browsing a merchant’s website or

between visits to a merchant’s website, the IP risk score and the

risk score associated with the transaction may increase.

minFraud Interactive is the user interface MaxMind offers

to their clients. Within the user interface, a client can create

custom rules based on coupled parameters to accept, reject,

or send transactions to manual review. minFraud Interactive

lets fraud analysts glance at specific data points of concern,

review associated transactions for quick and accurate analysis,

search historical transactions to fine-tune the custom rules, and

revisit decisioned transactions for chargeback reporting and

rule creation. The Transaction Details Page within minFraud

Interactive displays the disposition status as well as both

the riskScore and the IP risk score, along with all the other

parameters provided by the service, some of which have a visual


MaxMind




indication of highlighted risk assessment (see diagram below). This screen may also be

used by the user to perform manual review and set a disposition to accept or reject.

Additional minFraud Interactive features include:

• Custom rules which enable automated acceptance or rejection of transactions based

on certain criteria such as IP address, email address, etc. This can also be used to

provide the equivalent to negative file functionality.

• Custom inputs that enable the creation of custom rules for automating decisioning

and improved manual review related to merchant specific fraud.

• Chargeback reporting based on tagged transactions in minFraud Interactive,

which then feeds this data directly into the machine-learning algorithms and

adjusts the riskScore accordingly.

Geolocation Intelligence

• GeoIP2 Precision Services (real-time via application program interface (API)):

Country service, City service, Insights service.

• GeoIP2 Databases (downloadable): Country, City, ISP, Domain, connection type,

Anonymous IP, Enterprise.

• GeoLite2 Databases (downloadable): Country, City, Autonomous System

Number (ASN).

Within each of these three offerings, there are more detailed data points available,

such as continent, city, ISP org, domain, accuracy radius, etc.

To the right is a use case for the GeoIP2 Anonymous IP Database, which contains

information about IP address networks which are used as various forms of anonymizers.

The probable anonymizer type is also included..


MaxMind

CUSTOMER TESTIMONIAL

“We’ve been working with MaxMind

for a few years. We use their GeoIP

Database and Proxy Detection

application programming interface.

The integration was relatively

straightforward. We have no complaints

at all, as the files are delivered on time.

In the US, quality of data is good, but the

international data granularity is not the

same—but this isn’t surprising. They are

certainly a leader in the IP intelligence

space vs. their competition. They are

very responsive from a support needs

perspective, even though support is not

usually needed from our perspective.

MaxMind’s Proxy Detection product is

more predictive than the competition.”




The GeoIP2 Precision City service provides MaxMind’s most accurate information about

the location of an IP address to the zip or postal code level and identifies the associated

ISP or organization. The GeoIP2 Anonymous IP Database identifies anonymizing virtual

private network (VPN) Services, Tor Exit Nodes, Hosting Providers/Data Centers, and

Public Proxies. Most of their databases are updated weekly, with the exception of the

Anonymous IP database, which is updated daily. Each database update replaces the prior

downloaded database.

CUSTOMER TESTIMONIAL

“We’ve been working with MaxMind

since 2011. We use the minFraud and

GeoIP-based product, and we have it

incorporated into our in-house fraud

platform. We like it, as there is a cost

benefit perspective—we get a lot of

value for both minFraud and GeoIP. We

have had no downtime-related issues

for several years. We appreciate the

MaxMind team and feel there is more of

a personal relationship, and not a sales

targeted relationship. They take the time

to know you and your business. Their

response time via a direct email has

been excellent; it’s not like sending a

ticket and being treated like a number.”


Paladin would like to thank all of the participating vendors for their time and

availability during the discovery and post-writing processes. We also would like to

remind all readers of this report that they can email us at [email protected] to

let us know which vendors they would like to see participate in the refresh of this

report which will be published in early 2018. Again, anyone who downloads the

report will automatically be emailed the refreshed version upon publication.

MaxMind

14 Spring Street, 3rd Floor

Waltham, MA 02451 USA

+1-617-500-4493

www.maxmind.com


www.maxmind.com

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