IOVATION.COM 1 (503) IOVATION FRAUD PREVENTION STOP ONLINE FRAUD IN REAL TIME.

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1 IOVATION.COM 1 (503) IOVATION FRAUD PREVENTION STOP ONLINE FRAUD IN REAL TIME.

2 EVERY DEVICE TELLS A STORY. Most of them you can trust. Many, unfortunately, you can t. We can help you determine which ones are which. Since 2004, iovation has amassed a database of billions of unique devices, enabling our clients to halt millions of fraud attempts. From laptops to smartphones, we can identify any Internet-enabled device and instantly assess its risk level so you can tell the con artists apart from your customers. 4

3 TABLE OF CONTENTS HOW IT WORKS EVIDENCE

4 HOW IT WORKS INTELLIGENCE HOW IT WORKS It all starts with identifying the device, a lightning-quick process that launches the instant an end user s device interacts with your online property (website or app) through specified integration points (e.g. login, checkout, account creation, account registration). IDENTIFY DEVICE On your website / A JavaScript snippet captures over 100 attributes about the device. If fraudsters turn off third-party JavaScript to evade detection, our Multi-Domain Recognition feature ensures we can still identify and recognize your end users devices. On your app / Our mobile SDK captures over 100 attributes about the device, and assigns it a device ID or matches it to an existing ID. SEND DATA The device information is sent to iovation, along with an IP address and an identifier for the end user. To flag users who attempt to disguise their IP addresses, iovaton s fraud prevention service determines the real IP address for all visitors, including those using proxies. Plus, we continuously monitor the Tor network and maintain a current list of IP addresses used by Tor, which are 15x more likely to result in denied transactions. ASSESS REPUTATION We perform device recognition and assess the device s reputation, returning a transaction score, action recommendation and the device s detailed information. Since we have iovation integrated at login, their device intelligence helps us stop fraudsters before they ever get into an account and do any damage. There s nothing we like more than shutting down a fraudster. All in all, we ve reduced fraud by 75% and our operational efficiency and customer experience have improved greatly. ANGELA BIENER Chief Operating Officer / ntrust 3

5 FRAUD PROTECTION IN THE BLINK OF AN EYE Almost instantly, iovation Fraud Prevention will tell you what devices pose a risk to your business, so you can stop fraud before it happens. JAVASCRIPT SDK STEP 1 STEP 2 STEP 3 STEP 4 A customer visits your website, or accesses your desktop or mobile app. Device fingerprint and data attributes are collected via JavaScript or Mobile SDK. An authentication, fraud prevention or trust request is sent to our Global Device Intelligence Platform for analysis. A customized response Allow, Review or Deny along with a detailed fraud profile is returned in real time. 5

6 ANOMALOUS BEHAVIOR GLOBAL REPUTATION SECURITY RISK INDICATORS HOW IT WORKS EVIDENCE PUT AN END TO iovation device-based customer authentication delivers exceptionally strong security without adding friction to your users experience. By linking your customers devices, which we authenticate and assess for change over time, to specific accounts, you can add an invisible layer of defense against account takeover to create strong multi-factor authentication. This works side-byside with your existing technology by using the device as a seamless second factor, streamling the experience for customers while reducing the number of challenges presented to them without requiring personally identifiable information (PII). AUTHORIZED FOR ACCOUNT USE THE DEVICE AS THE INVISIBLE SECOND FACTOR DEVICE AND ENHANCE SECURITY & THE CUSTOMER EXPERIENCE There is simply no better solution for balancing positive customer experience with strong security. By delivering a one factor experience with two factor security, it helps to reduce the risk of account takeover and give your customers confidence that their important accounts are being protected. 7

7 Transaction Score Example Scores from incoming transactions are clearly displayed so you can make security decisions fast. A PROVEN PLATFORM FOR SCORING RISK If a device that comes to your online property is not recognized, we ll assess it for unique behavioral patterns associated with fraud and provide a recommendation based on business rules you specify. HOW IT WORKS EVIDENCE When a device triggers a rule, the rule s weight contributes to the overall transaction score. Devices with higher scores are deemed more trustworthy, and may be allowed to proceed. Those with lower scores may be automatically denied, flagged for manual review, or challenged for further authentication, depending on your preferences. With more than 50 business rules to choose from, you can create endless combinations of compound rules to customize iovation s fraud prevention service to complement your unique decisioning process, making it one of the most powerful tools in your security arsenal. 9

8 CUSTOMIZE YOUR PROTECTION ANOMALY The device exhibits potentially suspicious behavior. These behaviors, independently or in combination, may indicate attempts to evade detection. With more than 50 available business rules, it s easy to tailor your protection to meet your specific security needs. Choose a single rule or a combination of rules to fit your environment. Use of Tor network Mobile emulators Time zone or geolocation mismatch EVIDENCE The account or device has evidence placed against it by another client. To refine your scoring strategy, assign different weights to evidence supplied by your company or other iovation subscribers. RISK PROFILE The device shares characteristics with devices that have evidence of fraud placed against them. Risk profile rules factor risk score for devices into rule weights by multiplying the rule weight by the risk score. The resulting rule weight can influence the overall transaction score. Payment fraud Account takeover New account fraud Application fraud Local and global device risk Billing/shipping address mismatch Language and country risk IP address risk VELOCITY The frequency of activity has met the threshold you set for a given time period. Apply to all, some, or just one other active rule set. May take into account activity across all iovation s subscribers, or activity on your site alone. WATCHLIST / COMPARE The device or other transaction elements are associated with a list you re watching. You can set up positive or negative lists, and compare different values to expose risk. addresses per device Accounts created per device Transactions per device Devices per phone number Accounts Countries domains Device types IP addresses ISPs GEOLOCATION The transaction appears to originate from a location you ve specified. We detect an anonymous proxy or a data mismatch. May be applied to country, province/state, or city. AGE Devices you haven t previously seen may be set to trigger when the age of the account/device relationship is different by a given length of time. Stated IP: New York Real IP: Moscow New device Age of the account-device association 11

9 HOW IT WORKS INTELLIGENCE LEVERAGE CONFIRMED FRAUD INTELLIGENCE When you re warned about a fraud ring, it s important to have vast insight and granular details about it. Our database gives it to you. Using the power of the largest database of devices and confirmed fraud, iovation recognizes more than 50 types of fraud and abuse evidence, so you can identify and monitor those that present the most risk to you. This granularity gives you a unique competitive advantage, as other device identification providers only assign a bad or good tag to a device or transaction. When you have evidence of fraud against a device, your iovation service will automatically attach it to the Device ID in our database, which contains millions of detailed forms of evidence already recorded. As our database continues to grow, thanks in large part to iovation s global consortium of fraud professionals, our clients will reap the benefits of deeper fraud intelligence and actionable insights. We ve learned to pay close attention to a select group of iovation s clients that supply the most relevant evidence for our needs. Their criteria for bonus abuse may be different from ours, but credit card fraud always means an unwelcome player. MAGDALENA GNIADZIK-JOHANSSON Head of Payments and Fraud / Cherry Group RESULTS Prevented bogus claims worth up to 50,000 each Chargeback level remains less than 66% industry average 13

10 CREDIT CARD FRAUD SHIPPING FRAUD LOAN DEFAULT PROMOTION ABUSE PROFILE MISREPRESENTATION GOLD FARMING DEALER FRAUD SYNTHETIC IDENTITY THEFT CHIP DUMPING CLAIMS FRAUD 1ST PARTY ACH/DEBIT FRAUD COUNTERFEIT MONEY ORDER CHAT ABUSE POLICY VIOLATIONS SOLICITATION BUSINESS IDENTIFY THEFT PAYMENT EVASION PHISHING ALL-IN ABUSE CLAIMS FRAUD 3RD PARTY FINANCIAL CHEATING FRIENDLY CHARGEBACK CLICK FRAUD EVIDENCE TRACKING iovation tracks more than 50 types of fraud and abuse evidence. MISCONDUCT B2B FINANCIAL POLICY FRAUD OTHER TRADING RESTRICTION HIGH RISK ID THEFT INSUFFICIENT FUNDS AFFILIATE FRAUD SPAM CUSTOMER HARASSMENT CODE HACKING FICTITIOUS BUSINESS BUSINESS MISREPRESENTATION ACCOUNT TAKEOVER APPLICATION FRAUD 1ST PARTY UNDER OR OVER AGE POTENTIAL FRAUD FIRST PARTY FRAUD ABUSIVE TO INAPPROPRIATE CONTENT ARBITRAGE BETTING BUSINESS TAKEOVER TRUE IDENTIFY THEFT COLLUSION APPLICATION FRAUD 3RD PARTY REQUESTED EXCLUSION 15

11 ACCOUNT 1 Device directly associated with numerous purchases on retail site. ACCOUNT 2 Device linked to online gaming account accessed by multiple other devices with heavy activity. HOW IT WORKS INTELLIGENCE ACCOUNT 3 Device used to access account previously linked to potentially fraudulent activity. DEVICE Two year device history: Associated with 5 other devices and 16 different accounts. IDENTIFY DEVICE / ACCOUNT Expose sophisticated fraud rings by tracking, identifying and recognizing repeated associations between devices and account. When multiple devices are used to access a single account, or a group of common accounts, they are associated in our database, creating an aggregate reputation for those devices and the user(s) behind them. As a result, iovation is able to recognize a user that may be using multiple devices. Because iovation maintains a history of devices across all our clients sites, we are able to identify and expose associations that span our entire global database, particularly when those associations are flagged multiple times. 17

12 HOW IT WORKS IOVATION GLOBAL DEVICE INTELLIGENCE PLATFORM COUNTRIES FRAUD ANALYSTS MAJOR BRANDS INTELLIGENCE Our database contains intelligence on more than 3 billion devices across numerous industries, and the billions of associations that exist between them, making it the largest device intelligence database in the industry. Every month, thousands of fraud professionals from around the world, representing industries including financial services, retail, gaming and social networks, actively contribute hundreds of thousands of new instances of confirmed fraud to our database. Every form of evidence submitted by subscribers benefits the entire community. As a result, every member of our consortium is intrinsically motivated to maintain the highest quality evidence so all can gain actionable insights from it. 19

13 HOW IT WORKS CUSTOMIZE YOUR DEFENSE STRATEGY When you need to make changes to your defense plan as fraud activity and your needs evolve, you can do so in real time. ITEMS YOU CAN MODIFY INCLUDE: Your team has complete flexibility for rule tuning and changes take effect immediately. Of course, your dedicated iovation Client Management team is always available to assist you in optimizing rules. ADMIN CONSOLE ADMINISTRATION Your team will control which of your team members have access to the Admin Console along with their respective privileges. Business rules are one of the most useful tools I use to stop fraud. On other platforms, when you want to implement a change in your system it takes time. You will have to do some developing. With iovation, I can say OK, let s try this business rule. It looks like this identifies business fraud. I can make decisions very quickly. JESSICA HÅRD AF SEGERSTAD Sr. Fraud Analyst / Paf Group INTELLIGENCE UNIQUE IDENTIFIERS How you choose to associate our Device IDs with customer numbers, s, and other data. TRANSACTION DETAILS Modify transaction details such as billing information, monetary value of transactions or SKUs involved in the transaction. If government regulations or company policy prohibit you from sharing any elements of your transactions, you may elect to keep that data in house. RESULTS 40% decrease in deny rates for trustworthy customers Reduced manual review time by 33 hours per month 21

14 LEVERAGE DEEP TRANSACTION HOW IT WORKS INTELLIGENCE It s a dead giveaway when a fraudster uses the same address to open 20 different accounts in the span of just a few minutes. But what if he/she makes a slight change to each address and spreads the registrations over a few weeks? That s where transaction insight comes in. By cross-referencing more than 100 data fields from every transaction made over a 6-month period, you can detect more sophisticated fraud faster and more EASIER, DEEPER SEARCHES effectively. Simply determine the transaction details you want us to keep and we will securely store them for you where they are not accessible to any other client in our consortium. TRANSACTION Event ID Service ID (site) Referrer URL Alternate IP (ipv4 or v6) Value Amount Currency Type SKU UPC Session Alias CUSTOMER Security PIN Security PIN Type National ID Issuer Online ID Home Phone Mobile Phone Office Phone DATA FIELDS ADDRESS Billing Street Billing City Billing Region Billing Postal Code Billing Country Shipping Street Shipping City Shipping Region Shipping Postal Code Shipping Country OTHER Verified Phone Number Verified (home, mobile, work) Phone SMS Enabled (home, mobile, work) Billing/Shipping Match ACH Routing Number Credit Card BIN To optimize your searching, you can choose the transaction data fields you want to see using one easy-to-manage page and hide those that don t apply. Wildcards and cross-field searches (e.g. device language settings and Real IP address) offer even more granular control. You can set the way results are displayed, schedule or run ad hoc reports, and choose how to share the data with colleagues or other anti-fraud solutions. Your display preferences are automatically saved for future searches. 23

15 Customize the enhanced search page to include the data fields in the format that s most helpful for you. We ll save your display preferences for future searches. Fraudsters will purchase every piece of personally identifiable information on a victim. It all looks perfect on paper and matches the credit bureau information exactly. Those are the most dangerous applications that we see. We have not experienced fraud losses resulting from a credit card application since we deployed iovation. CRISTINA KODER Check Fraud Operations Supervisor / UMB Financial Corporation RESULTS Eliminated all fraudulent credit applications 25

16 COMBAT FRAUD The ios and Android SDKs for our mobile apps add even more power to helping us pinpoint bad actors and keep them out. HOW IT WORKS INTELLIGENCE With the use of mobile devices skyrocketing around the world, a strong defense against mobile fraud is absolutely critical to a comprehensive fraud strategy. Our award-winning mobile SDK instantly recognizes common high-risk indicators, including: Jailbroken / Rooted Devices Virtual Machines / Emulators Location-based Anomalies Device Type / OS / Screen Resolution Mismatches Our mobile SDK can be easily added to a mobile app at key integration points to collect iinformation about your endusers devices, which minimizes the need for invasive step-up authentication for your customers. As a result, you can streamline the overall experience for your customers while providing your business with the peace of mind and confidence it needs. 50 % Half of all transactions we see today originate from a mobile device. ANGELA BIENER Chief Operating Officer / ntrust RESULTS Mobile SDKs for Android and ios apps helped reduce fraud by 75% 27

17 HOW IT WORKS INTELLIGENCE COMPREHENSIVE When you partner with iovation to fight fraud, you gain immediate access to a superior team of integration engineers and client managers. Our seasoned industry experts will get you up and running quickly, show you how to optimize your integration, help you stay ahead of fraudsters, IOVATION FRAUD FORCE COMMUNITY and become a crucial extension of your organization s fraud team. As a subscriber, you also gain access to iovation s Fraud Force, our exclusive community of global fraud professionals. Members utilize this online platform coupled with our annual Fraud Force Summit to collaborate with their industry peers and share best practices for application of iovation s services. 98 % CUSTOMER RETENTION RATE Our global support team is the best in the business and the results speak for themselves. With a 98 percent customer retention rate, iovation has one of the highest Net Promoter Scores of all SaaS companies (50 percent average score last 4 years while the industry average is 15 percent). 29

18 THE FIGHT AGAINST FRAUD STARTS HERE iovation is committed to helping you stop fraud at every integration point and across every division of your organization that is susceptible. Together, we will share the story behind every device to keep your company safe. IOVATION.COM 1 (503)