Device reputation spots online evildoers by examining the computer, smartphone, or tablet they are using to connect to any website. If a device is recognized as having previously committed some type of unwanted behavior, the website has the opportunity to reject the transaction, preventing damage before it occurs.
In the physical world, as the saying goes, “You are only as good as your word.” And when somebody says one thing and does another, we no longer trust them.
Online, people say and do things they never would in the real world. Internet anonymity fuels bad behavior. Websites’ comments sections are filled with vitriol that you’d never hear real people utter. Pedophiles who’d never approach a child on the street contact kids over the Internet. Sex offenders avoid the stigma of their label on dating sites and social media. Scammers create accounts in order to con people and businesses into forking over money. And identity thieves use your personal information to fill out online applications for credit.
All of this is made possible by the anonymity of the Internet.
As fraudsters develop more sophisticated schemes and collaborate in elaborate fraud rings, the threat of cybercrime increases. Online businesses are getting hit hard by fraud and abuse, and it’s critical that fraud protection solutions save them from significant losses and damaged reputations.
A device reputation service checks for suspect history, but also investigates for characteristics consistent with fraudulent users. And the best part is that it denies criminals, often even before their first attempt.
According to Greg Pierson, Founder and CEO of iovation, “Device reputation helps prevent identity thieves from monetizing the credentials that they have stolen. At the same time we are protecting online businesses, we’re also protecting the consumer.”
Device-based fraud management and a shared device reputation infrastructure play a critical role in identifying online fraud and abuse. Neglecting to take advantage of these tools severely limits a business’s ability to prevent fraud.