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New Equifax service verifies ‘smart’ devices to reduce fraudulent transactions

By CreditMan Monday, July 13, 2015

Equifax, the consumer and business insights expert, has launched Equifax Device Verifier, a service that allows businesses to protect themselves against the risk of fraudulent activity when dealing with customers online.

Using technology from anti-fraud company, iovation, Equifax Device Verifier assesses the risk of fraud associated with any device being used to make online purchases, including smartphones, desktops, laptops and tablets. The service checks to see if there is any history of fraudulent activity linked to the device using iovation’s global fraud network, which looks at the reputations of more than 2.5 billion devices, 23 million fraud reports, and real-time risk indicators such as device anomalies, excessive repeated use of the same device, and evasion techniques attempting to conceal the nature of the device or its location.

Peter Harrison, Product Leader Identity & Fraud, Equifax, said: “As more businesses accept transactions online and via mobile devices, there is greater risk of fraud being perpetrated. It is no longer enough to check an individual’s identity through personal verification checks and “challenge and response” questions, meaning that other security measures must be implemented.”

The behind-the-scenes service flags any previous suspicious behaviour linked to a particular device or associated devices (for example an iPad linked to an iPhone accessing the same online account), allowing businesses to put additional checks in place to stop potentially fraudulent transactions. The device recognition solution works by identifying information such as the true physical location and IP address of a device. If fraudulent activity is detected, the online transaction can be stopped, avoiding financial repercussions for the business.

Equifax Device Verifier has been designed to protect against fraudulent activity while ensuring that genuine customers still receive a smooth and efficient service. As device reputation checks are performed in real time, there is no delay in the customer experience for authentic transactions.

Harrison adds: “Being able to detect potential fraudulent activity associated with a particular device allows us to flag potential threats and stop fraudulent transactions before they are completed, limiting the financial impact on businesses. We have been working closely with iovation to develop market leading solutions to stay one step ahead of fraudsters and help to win the battle against online fraud.”

Equifax Device Verifier is an integral part of Equifax Progressive Authentication, a suite of ID and fraud products designed to improve the customer’s journey while reducing the risk of fraud and meeting regulatory requirements. Using Equifax Progressive Authentication, businesses can set and optimise the level of checks that they would like their customers to go through according to the type of product and risk associated.

Max Anhoury, VP of Global Partnerships, iovation, said: "We are pleased to power Equifax Device Verifier with our device intelligence service, leveraging our consortium which has been contributed to by 3,000 international fraud analysts on the front lines. This combined solution offers extreme fraud reduction to our joint clients, and also works as an extension of our clients’ risk mitigation teams. Cybercriminals work in organised teams, and so do we.

“At the highest risk online and mobile customer touchpoints, such as payment, account opening and login, Device Verifier uses our in-depth device recognition technology to implement a layered approach that improves fraud prevention without impacting the customer experience.“