You have a business with a big online presence and have dealt with fraud before - very likely in many forms and at many different customer touch points. Fraudsters are smart, so you must outsmart them. At the same time, to ensure the success of your online presence, it's critical that you create the best and most engaging experience possible for your customers, attract new customers, retain those who are already loyal, and encourage all of them to spend more with you. How can you do all of this while keeping fraudsters out to minimize your fraud losses? With emerging technologies such as predictive, adaptive transaction scoring using real-time machine learning and device intelligence, along with frictionless customer authentication, it's easier than you think.

1. WEBINAR
CREATING A WINNING PLAYER EXPERIENCE WHILE
BATTLING ONLINE FRAUD
DECEMBER 2016
Eddie Glenn
Product Marketing Manager, Fraud Platform & Mobile
Tommy Lieberman
Product Manager, User Experience

2. 2
EDDIE GLENN
P R O D U C T M A R K E T I N G M A N A G E R , F R A U D P R E V E N T I O N
TOM M Y L I EBER M AN
P R O D U C T M A N A G E R , U S E R E X P E R I E N C E

3. 3
USER EXPERIENCE MATTERS.
IT SELLS.
IT BUILDS LOYALTY.

4. AGENDA
4
n BALANCING
FRAUD PREVENTION, SECURITY,
USER EXPERIENCE
n DEVICE INTELLIGENCE
n DYNAMIC AUTHENTICATION
n MACHINE LEARNING FOR
PREDICTING RISK AND TRUST
n CLOSING REMARKS

5. 5
ONLINE SECURITYONLINE FRAUD
Credit card fraud
Affiliate fraud
Arbitrage
Bonus abuse
Stolen identity
Account take over
Breached credentials
Spoofing
Unauthorized access
Replay attack
YOUR CUSTOMER

6. 6
WHAT’S YOUR
USER EXPERIENCE LIKE?
ACCOUNT CREATION
Probably already pretty
low-friction
But other than email, you
likely know very little about
them
Do you assume new players
are bots, potential
fraudsters, or your best new
customer?

7. 7
WHAT’S YOUR
USER EXPERIENCE LIKE?
LOGIN
How complex are your
password requirements?
Do you offer a
password-less option?
What happens if a password
is forgotten?
How do you protect against
unauthorized logins?
How do you reward your
best customers?

8. 8
WHAT’S YOUR
USER EXPERIENCE LIKE?
DEPOSITS, WITHDRAWALS,
PURCHASES
Do you require additional
verification or authentication?
If so, what kind?
Do you place limits/restrictions on
new players?
What’s your process for dealing
with high-risk players?
How do you reward your best
players?

9. 9
COMPETING NEEDS
• Less user friction overall
• Better customer experiences
• More immediate access
• Build brand loyalty
• Ensure more time spent on
the site
PRODUCT & APP OWNERS
• Reduce attack surface
• Manage and minimize risk
• Stop fraud & cheating
• Leverage existing
capabilities, infrastructure
• Real-time threat indicators
SECURITY & FRAUD TEAMS

10. 10
3 WAYS TO IMPROVE CUSTOMER EXPERIENCE
WHILE PROTECTING YOU & YOUR CUSTOMER
FRICTIONLESS
FRAUD
PREVENTION
CUSTOMER
AUTHENTICATION
PREDICTIVE
TRANSACTION
INSIGHT

11. DEVICE
INTELLIGENCE

12. 12
Your
customer
63%
world’s population
with mobile 2015
75%(est)
world’s population
with mobile 2020
www.gsma.com/mobileeconomy/

13. 13
DEVICE INTELLIGENCE
DEVICEINTELLIGENCE
DEVICE LOCATION
DEVICE BEHAVIOR
DEVICE RISKS
DEVICE HISTORY
DEVICE REPUTATION
OPERATOR’SBI
USER IDENTITY
USER BEHAVIOR
USER HISTORY
USER PAYMENT INFO
This separation is useful for:
n Privacy compliance
n Incidents of breached
credentials or stolen identity
n Fraud prevention
collaboration across
industries while obfuscating
user identity
n Secondary protection for
self-exclusion
A S E P A R A T E D L A Y E R O F C U S T O M E R I N T E L L I G E N C E

14. 14
DEVICE INTELLIGENCE
Hundreds of attributes
collected
‘Fingerprint’ compared to
billions of previously
collected fingerprints
Frictionless to end user
‘Fingerprint’ collected in
real-time
Device risk indicators
Associations to other
devices, accounts, fraud
A DIGITAL FINGERPRINT OF THE DEVICES THAT CONNECT
TO YOUR WEB AND MOBILE APPS

15. 15
ADDRESSING FRAUD PREVENTION, SECURITY & USER
EXPERIENCE
Is device authorized
for this account?
Where is device
located?
Does device have a
history of fraud?
Is this a trusted or risky
transaction?
How many accounts
has device accessed?
Is device hiding from
detection or exhibiting
other risks?
FRICTIONLESS. INVISIBLE TO USER. SAFE. RELIABLE.

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WHAT DEVICE INTELLIGENCE IS NOT
Does not use personal
identifying information
Does not tie a device to a
named individual
Does not prevent winners
from winning more
Does not track a user’s
browsing history
Does not track gaming
behavior or wins/losses
Does not encourage
losers to spend more

17. 17
Your view
ADVANCED DEVICE
INTELLIGENCE
n iovation knows related
devices and accounts
Fraud
Report
n If fraud is detected &
confirmed, evidence is placed
on the account
n Related devices and accounts
become associated with the
fraud stopping additional
fraud attempts
DEVICE ASSOCIATIONS DO NOT REQUIRE PII

18. 18
iovation’s view
Your view
n iovation links devices between
subscribers and even different
industries
Fraud
Report
n If another iovation subscriber
confirms fraud on their
account…
PERSISTENT DEVICE IDENTIFICATION & ASSOCIATIONS STOP
FRAUDSTERS AS THEY MOVE BETWEEN BUSINESSES AND INDUSTRIES
ADVANCED DEVICE
INTELLIGENCE

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iovation’s view
Your view
n Then you can use this to deny
transactions on accounts that
are accessed by the
fraudulent device Fraud
Report
THIS STOPS KNOWN FRAUDULENT DEVICES EVEN IF YOU
HAVE NEVER SEEN THEM BEFORE
ADVANCED DEVICE
INTELLIGENCE

20. STOPPING
FRAUDSTERS &
CHEATERS
WITHOUT ADDING FRICTION FOR
LEGITIMATE PLAYERS

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D E V I C E I N T E L L I G E N C E C A N S T O P G A M B L I N G / G A M I N G F R A U D
D E V I C E R I S K S A N D D E V I C E B E H A V I O R R I S K S
Evasive behavior
Inaccurate geo-location
Emulator, virtual machine
Jailbroken, rooted
Used for multiple accounts
High # of transactions
Associated with past fraud
Past self-exclusion
Without added friction for your legitimate players

22. 22
Exposing online gambling fraud.
Threats are higher in gambling than anywhere else online.
BONUS ABUSE
CHIP DUMPING COLLUSION
ALL-IN-ABUSE
ARBITRAGE BETTING SELF-EXCLUSION

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Catch players involved in fraud schemes.
We reveal multiple devices accessing one or more accounts
and one device accessing multiple accounts.
Account 1
Account 2
Account 3
Account 4

24. PLAYER
AUTHENTICATION
ADVANCED ACCOUNT SECURITY WITH
MINIMAL USER FRICTION

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Is this your
player’s login
experience?
Your users want a delightful
experience…
…but with the assurance their
account is secure
Device-based authentication provides advanced security you need
without the hassle for your players

26. 26
DEVICE BASED AUTHENTICATION
F R I C T I O N L E S S , C O N T E X T U A L A N D A D A P T I V E D E V I C E - B A S E D A U T H E N T I C A T I O N
FRICTIONLESS CONTEXTUAL ADAPTIVE
Transparent
authentication
Patented device
recognition
Machine learning
adapts to normal
changes and
deviations
Assess the risk
and context of
every session
React in real-time
to anomalies
Understand
device reputation
and associations
Dynamic
authentication
decisioning
Respond to
different degrees
of risk
Drive step-up or
other actions
DEVICE ID
GEO / IP
INTEGRITY
CONTEXT
REPUTATION
Match
Low
Change
High
Change

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MULTIFACTOR AUTHENTICATION
B E T T E R U S E R E X P E R I E N C E E V E N F O R H I G H R I S K T R A N S A C T I O N S
Drive all authentication
through one mobile experience,
with configurable options
Single-party or
multi-party real time swipe
authorization
Geo-fencing and time-
fencing constraints create
secure login zones
Proximity - Requires a preset
Bluetooth device to be nearby
Fingerprint - Biometric scans
using customer’s mobile device
Circle Code - Graphic pattern
uses customer’s mobile device
PIN Codes - Authenticate
using user-defined PIN codes

28. BUILDING
BRAND LOYALTY
WITH PREDICTIVE TRANSACTION INSIGHT

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FRICTIONLESS USER EXPERIENCE
WITH TRANSPARENT FRAUD PREVENTION & AUTHENTICATION
REWARD GOOD CUSTOMERS
Build brand loyalty
Grow revenue
Grow market share

30. 30
Building Brand Loyalty
Accelerate
VIP status
offers
Offer
bonus chips
Accelerate
deposit limit
increases
Less
cumbersome
deposit
procedures
while minimizing your risk

31. 31
Machine learning with device intelligence
data can predict transaction outcomes:
• Highly risky (likely to be fraudulent)
• Highly trustworthy
23B
online
transactions
Millions of
combinations
analyzed
30M
confirmed
fraud reports
3B
known
devices

32. 32
Predictive
Transaction
Insight
Device Behavior & Attributes
Device transaction velocity
Evasive, rooted/jailbroken,
other risk indicators
Associated with past fraud?
Account Behavior
Account transaction velocity
Associated with past fraud?
Demographic
City, ISP, geolocation
Patterns of geo-location
attributes
Mismatch of location
indicators
Subscriber
Subscriber and transaction
timezone patterns

33. CLOSING REMARKS

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USING DEVICE INTELLIGENCE TO IMPROVE END TO END USER EXPERIENCE
Learn more about the user
without adding friction
Offer trustworthy users
incentives to create an
account and play
Keep out devices that are
risky or associated with
past fraud.
NEW ACCOUNT
CREATION
Eliminate need for
passwords while
protecting against account
take over
Offer trustworthy users
incentives to play more
LOGIN
Offer easier & convenient
payment options for
trustworthy customers
Identify high-risk customers
without adding friction to
good customers
Offer low-friction multi-
factor authentication to
protect the account
DEPOSITS,
WITHDRAWALS,
PURCHASES

35. 35
ONLINE SECURITYONLINE FRAUD
Credit card fraud
Affiliate fraud
Arbitrage
Bonus abuse
Stolen identity
Account take over
Breached credentials
Spoofing
Unauthorized access
Replay attack
YOUR CUSTOMER

36. THANK YOU!