IdentityMind, ID Analytics Fight E-Commerce Fraud, Evaluate Merchant Risk

June 20, 2013

This week, two California firms announced a partnership they said will enable retailers to better root out e-commerce fraud and help acquirers and PSPs onboard merchant clients with less risk. Antifraud technology provider IdentityMind has integrated ID Analytics’ extensive database of cross-industry consumer behavioral data and fraud scoring into its Anti Fraud and Merchant Account Risk Platform, giving merchants access to more identity data to identify e-commerce fraud. Acquirers and PSPs working with IdentityMind also will benefit from the partnership, the companies said, by incorporating ID Analytics’ ID Score and ID Score Account Takeover solutions into their underwriting, helping to stop merchant account applications associated with stolen identities.

More data, and how that data is presented, is central to the progress IdentityMind has made in enabling merchants to fight fraud in the last year, according to Jose Caldera, vice president of platform management for IdentityMind. And, working with third parties like ID Analytics has increased the amount of data available to its clients, which makes fraud decisioning more accurate.

Caldera, who spoke to at the recent CNP Expo in Orlando, Fla., called the work IdentityMind has done on the merchant risk side an increasingly important area of its business.

“This gives acquirers, ISOs and PSPs a way to understand and monitor the risk associated with their merchant portfolio,” Caldera said. “We’re covering underwriting and risk by looking at actual transactions that are coming through and understanding merchant behavior in terms of consumer base, ticket items, international activity, etc. Because of all the fraud data we see in the network, we can monitor changes in the consumer behavior of merchants and determine if a certain merchant is a higher risk and should or shouldn’t be offered a merchant account.”

Under the agreement, IdentityMind’s platform has integrated four specific ID Analytics solutions—covering risk scoring, online account takeover, transaction data and more—that leverage the company’s ID Network, a real-time network it said can identify virtually every adult consumer in the U.S.

“We can do that because we work with six of the top 10 financial institutions, the top four wireless carriers, a variety of cable and satellite companies and e-commerce. Over the course of the past 10 years, we’ve seen each U.S. consumer, at some point or another, apply for a mobile phone, a credit card or whatever the case may be,” said Aaron Kline in a recent interview. “We have a real-time insight. We’ve collected over the past 10 years 750 billion data elements about consumers and we’ve built a growing database of about 3 million actual fraudulent events.”