Voice of the Industry

Tony Larks, ThreatMetrix: "Reduce fraud and costs of managing fraud: context-based authentication"

Tuesday 4 November 2014 10:58 CET | Editor: Melisande Mual | Voice of the industry

ThreatMetrix offers an alternative option to the problem of account creation, log-in and payment fraud

Online retailers to payment providers, financial services firms to gaming companies regard fraud losses as the biggest threat facing their business and customers today. But while there are a growing number of products and services on the market designed to deal with the problem, few can genuinely reduce the risk of fraud whilst minimising associated costs and at the same time have no impact on the end user.

Google recently announced support for Secure Key – a USB device which consumers can use to authenticate securely via two factor authentication into their online accounts. The idea is that other online service providers and stores will also roll-out support in a bid to minimise account fraud and identity theft. But whilst any move to reduce fraud is to be welcomed, it can’t overcome the fact that two-step verification as an imperfect and expensive solution to the problem, which can increase transaction abandonment rates and even reduce top line revenue.

ThreatMetrix offers more

ThreatMetrix offers an alternative option to the problem of account creation, log-in and payment fraud. It’s all about context-based authentication powered by our Global Trust Intelligence Network – which draws on data provided by over 850 million transactions each month to decide between legitimate users and fraudsters.

It works completely in the background, providing four lines of defence for our global customers: device analytics; identity analytics; behavioural analytics; and global intelligence which allow organizations to manage rules and integrate with third party solutions. What’s more, the identity analytics are based on anonymised data to protect privacy.

Cutting fraud, cutting cost

Because the platform works in the background it’s completely transparent to the customer, requires less than a second to complete and costs less than a penny per transaction. More than half of ThreatMetrix customers said they’ve seen an increase in revenue of 5-15% thanks to having a zero customer friction solution like this in place, according to recent research conducted by TechValidate.

Even better for the bottom line of our 3,000+ customers is the reduction in chargebacks that have resulted from choosing a leading fraud prevention solution. One third (34%) said that chargebacks have fallen between 20-60%. ThreatMetrix also reduces the need for costly manual reviews. One third of customers said manual reviews fell by between 20-60% and a further 13% said reviews had fallen a massive 80%+.

But ultimately, it’s reduced fraud that matters most to our customers, and here ThreatMetrix hasn’t disappointed either. Over half (58%) said that they’d reduced fraud levels by up to 40%, whilst almost a quarter (23%) said they slashed fraud by 40-60%.

ThreatMetrix customers come from all over the world and all sectors – from online retailers to payment providers, financial services firms to gaming companies. Some 91% of them said in a recent survey that fraud losses are the biggest threat to their business today. If you want to find out how ThreatMetrix can reduce fraud and the cost of managing fraud for your business, call us today.

About the author
Tony Larks is a disruptive, results-focused Digital Marketing leader with a consistently strong record of delivering impactful programs and campaigns to achieve both from a marketing metric and business objective (top/bottom line growth). Over twenty years management experience across Agency, Distribution & Vendor across all trading segments, Enterprise, Channel, SMB & Consumer.

 Company description
ThreatMetrix is the fastest-growing provider of integrated cybercrime prevention solutions, processing over 500 million login, payment and wire transfers monthly. ThreatMetrix TrustDefende Cybercrime Protection Platform helps companies prevent unauthorized access to web and mobile applications, protect sensitive data, and secure transactions against account takeover, payment fraud, identity spoofing and malware.

 

 


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Keywords: Tony Larks, ThreatMetrix, fraud, authentication, payment fraud, account creation, Secure Key
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