Stop Online Fraud Before It Happens

Business and other transactions are conducted online more than ever and increase as more types of devices make it easier to conduct transactions everywhere.  Unfortunately, the advances in technology have made it easier for fraudsters to find ways to commit illegal activities.  One way businesses and organizations conducting transactions through cyberspace is to implement a Device Reputation system.  An effective strategy to recognize fraudulent devices before they have a chance to complete a transaction can help protect a business or organization from fraudsters dependent upon the anonymity cyberspace gives them.

This method provides a passive layer of protection that focuses on identifying machines and devices that pose a potential threat.  This includes computers, laptops, smartphones, tablets and any other mobile device.  The system recognizes previous behavior deemed a threat and prevents the machine from completing a transaction.  It also traces the machine's location.  However, the drawback to preventive measures such as these is that they can potentially block out legitimate transactions if the system is not tailored to meet the specific needs of each industry as well as the individual business.

When implementing a Device Reputation strategy, one needs to make sure the criteria are those that fit with a specific industry.  For instance, a strategy to prevent fraud in a retail clothing site may not work for a travel site because fraudsters tailor their methods according to industry.  If a machine has been identified as a threat to one industry, it may not necessarily be a threat to another.  The identification system used should not be a catch all net to block out any and every machine that has marks against it.

Rather, one has to determine what factors constitute a unique threat to a business.  One also has to make sure his or her true identification methods are relevant to the business.  This means that not only should the machine be checked for previous fraudulent activity but it should also detect suspect behavior or characteristics that are consistent with fraudulent behavior.  Furthermore, one can tell when a machine is acting like a bot and not an actual person, which is also consistent with fraudulent methods.

Having a good Device Reputation strategy not only protects businesses from fraudsters, but it also protects consumers.  It makes it difficult for identity thieves to utilize their stolen credentials as well as limit a fraudster to take advantage of any other methods of threatening a business' reputation.  As the technology continues to evolve, one must be able to anticipate ways fraudsters will try to use it to their advantage.  Using a system that prevents fraud before it has a chance to occur is the best way to protect a business and its customers.

 

 

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