Anatomy of an Attack

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Every year, companies lose $100 billion to online fraud. In this deck, we detail an actual online attack by fraudsters on a prominent gaming website and how Kount identified and prevented fraudulent transactions.

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  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Kount MissionAs a company our mission is to be a leading innovator in designing and providing companies solutions for fraud and risk management. Kount is committed to an all in one operational solution focused on greater usability, with less complexity, with a no compromise approach to providing the fastest and most accurate results possible. CLICKKount’s heritage as a solution born from a successful eCommerce business means you get a solution that incorporates core internet tenants of operation: Technology, software – solutions should make things easier not harder – Building an effective fraud program is a lot of work, it’s complex and requires a number of features to support the risk operations team. A fraud solution is intended to make this easier, less work for the team, and Kount has made it one of their design principals to deliver you an all-in-one solution that is easy to get up and running and easy to use and understand. Change is a matter of existence a solution must allow for low level immediate control - Just because we made it more usable doesn’t mean you lose control over what and how you want to run your risk screening, you have the freedom to get as granular as you want on managing the rules, workflow and risk tolerances your business needs to be effective. The internet is real time – Customers buying online expect to complete their business quickly – anything that slows that process down could impact business – everything must be in real time and fast – Our core services allow us to process transactions in 250 to 350 milliseconds on average. CLICK
  • Anatomy of an Attack

    1. 1. Anatomy of an Attack
    2. 2. KOUNT CONFIDENTIAL & PROPRIETARY 1. On December 27, 2012, a global top ten gamer website experienced a dramatic increase in the number of declined orders. 2. The decline rate went from the average of under 5% to over 35% 3. Kount detected and stopped a BOT attack that was attempting to infiltrate and fraudulently purchase goods on the website 4. The attack lasted approximately three days 5. During the attack and once the attack was over, the company’s website responded normally, as if nothing happened. The Attack
    3. 3. KOUNT CONFIDENTIAL & PROPRIETARY The Attack This line represents the upper limit of declines. This is calculated daily based on a 14-day trailing average of daily variations to 99%. Generally, this line is 3 standard deviations from the “decline mean” rate.
    4. 4. KOUNT CONFIDENTIAL & PROPRIETARY The Attack This line represents the lower limit of declines. This is calculated daily based on a 14-day trailing average of daily variations to 99%. Generally, this line is 3 standard deviations from the “decline mean” rate.
    5. 5. KOUNT CONFIDENTIAL & PROPRIETARY The Attack This line represents the decline rate mean. This is calculated daily based on a 14-day trailing average of daily variations to 99%. The decline rate averages between 3% - 6% based on rules applied by Blizzard.
    6. 6. KOUNT CONFIDENTIAL & PROPRIETARY The Attack This line represents the actual decline rate.
    7. 7. KOUNT CONFIDENTIAL & PROPRIETARY The Attack Note: since these lines are created from a 14-day trailing average, we see them increase as a result. These will return to normal ranges in time.
    8. 8. KOUNT CONFIDENTIAL & PROPRIETARY The Attack This line represents actual # of approvals daily. This line represents actual # of declines daily. This line represents actual # of reviews daily. Spike in sales on Christmas day, expected activity. No increase in declines, also expected activity. Spike in declines over the next three days without corresponding increase in sales, unexpected, unusual activity.
    9. 9. KOUNT CONFIDENTIAL & PROPRIETARY The Attack RANK EMAIL # TRANSACTIONS 1 XUNAN1978@LIVE.COM 4762 2 DIABLOJINKA@LIVE.COM 1349 3 PEDERAKIS22@LIVE.COM 1243 7,354 The attack was centered around three main email addresses which may indicate that a “bot” was running from hijacked or dedicated machines… Declined orders
    10. 10. KOUNT CONFIDENTIAL & PROPRIETARY The Attack RANK IP ADDRESS TRANSACTIONS 1 79.126.163.185 5739 2 79.126.172.135 1628 7,367 …and only two IP addresses
    11. 11. KOUNT CONFIDENTIAL & PROPRIETARY The Attack Each dot represents the number of attempts made per minute, sometimes averaging nearly two and a half attempts per second. This line represents the running average of attempts per minute.
    12. 12. KOUNT CONFIDENTIAL & PROPRIETARY The Attack From the email address XUNAN1978@LIVE.COM: # TRANSATION DATE/TIME TRANSACTION COUNT 1 12/27/2012 1:31:00 PM 108 2 12/27/2012 1:32:00 PM 71 3 12/27/2012 1:33:00 PM 100 4 12/27/2012 1:34:00 PM 41 5 12/27/2012 1:35:00 PM 85 6 12/27/2012 1:36:00 PM 114
    13. 13. KOUNT CONFIDENTIAL & PROPRIETARY The Attack Where did these “orders” originate? Macedonia
    14. 14. KOUNT CONFIDENTIAL & PROPRIETARY The Result Kount responded to this attack exactly how it was designed. • Detected the fraud, in real-time • Stopped the fraud, in real-time • Reported the fraud • Protected the customer • Kept exposure to fraud and fraud losses to ZERO $$$ • All done automatically, without interrupting normal business activity • This type of fraud could not have been detected using old, look-up technology
    15. 15. KOUNT CONFIDENTIAL & PROPRIETARY • World’s largest online distributor of independent music - Helps artist sell to iTunes, Amazon and Facebook • Paying out 75% commissions • Over $200 million in commissions paid • Fraudulent artists & affiliates • Charge backs/Fraud 2.5%+, $26,000 lost in one month • Reputation at stake with some partner brands Case Study – CDBaby Situation
    16. 16. KOUNT CONFIDENTIAL & PROPRIETARY Case Study - CDBaby Fraudster posing as an artist post music for sale on CDBaby.com 1
    17. 17. KOUNT CONFIDENTIAL & PROPRIETARY Case Study - CDBaby Fraudster posing as an artist post music for sale on CDBaby.com 1 Fraudster joins CDBaby affiliate program, receives 75% commission 2
    18. 18. KOUNT CONFIDENTIAL & PROPRIETARY Case Study - CDBaby Fraudster posing as an artist post music for sale on CDBaby.com 1 Fraudster joins CDBaby affiliate program, receives 75% commission 2 Using stolen credit information, Fraudster purchases music from affiliate (Fraudster) 3
    19. 19. KOUNT CONFIDENTIAL & PROPRIETARY Case Study - CDBaby Fraudster posing as an artist post music for sale on CDBaby.com 1 Fraudster joins CDBaby affiliate program, receives 75% commission 2 Using stolen credit information, Fraudster purchases music from affiliate (Fraudster) 3 Pays royalty to artist 4 Pays commission to affiliate (75%) Pays fines, chargebacks
    20. 20. KOUNT CONFIDENTIAL & PROPRIETARY Case Study - CDBaby • Reduced fraud by 96% • Results in less than 30 days • Fraud losses average $850/mo. • NO loss in revenue • Enhanced marketing opportunities • Great relationship with iTunes
    21. 21. KOUNT CONFIDENTIAL & PROPRIETARY Questions Don Bush VP, Marketing, Kount 208.489.3346 don.bush@kount.com

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