News, Education and Events Decoding Digital Payments & Fraud

News, Education and Events Decoding Digital Payments & Fraud

Moving Beyond the Device: Three-part Executive Summary Part II

Moving Beyond the Device: Three-part Executive Summary

Shopping Part II

Device Identification—an online fraud prevention tool that only recently has begun to gain mainstream acceptance—establishes a unique ID for a device attempting to access a Website. Devices are assigned tokens that can be tracked across multiple user transactions, providing a unique identifier that makes it possible to differentiate one entity from all the other entities accessing the site. A new white paper from Sarasota, Fla.-based e-commerce payments consultancy The Fraud Practice describes methods required to integrate Device Identification into an overall fraud solution. will offer an executive summary of the detailed document in three parts. Today: Part II.

The Limitations of Device Identification

The technology behind Device Identification is by no means fool-proof. No fraud prevention technology is.

Device Identification’s strength lies in detecting patterns after repeat visits. It provides limited-to-no-value when it comes to fraud prevention for true first-time consumers. The method ­ simply provides a unique token ID for that user. There will be no way of knowing whether or not the user is trustworthy.

The Power of Device Identification

Device Identification as a tool and technique is not one dimensional. It can be used to detect both negative and positive purchase behavior, based on the way it is implemented.

Device identification recognizes that a person who made a purchase in the past is the person returning to the site to make another transaction. This allows for streamlining of order fulfillment and relaxation of some financial thresholds (if the consumer is trusted). Also, device identification detects the number and variety of devices a consumer uses to access a website. Connecting a certain type of device to a certain consumer allows for more effective product development and marketing.

Device identification can also be a powerful tool to detect identity morphing, account takeovers, repeat fraudsters and individuals intentionally hiding their identities.

Integrating Device ID into an Overall Solution

Fraud prevention solutions and strategies that want to leverage the full power of device identification rely on a plan for supporting functionality and capabilities in three core areas: operational management, strategy management and fraud screening.

Integrating Device ID into an Overall Solution

Operational management requires that your team be able to extract and present the device ID data in a way that is usable for them. Strategy management ensures that your company can make use of device identification within a strategy. When considering fraud screening companies must understand that a single fraud tool does not constitute an effective overall fraud solution. Effective fraud solutions make use of three or more fraud screening tools.

Next: Outlining logical areas where companies can integrate device identification solutions.

Part Three will be released on December 27 . David’s research has been made possible by funding from Kount, Inc.

Don’t want to wait for Part Three? Download the full white paper today by clicking here .

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Daniel Leibovitch