Identities are stolen and faked. Login credentials breached. Which is why device reputation is critical when dealing with online transactions. When combined with industry-leading device recognition and intelligence technology, device reputation can be a critical component for preventing online fraud. What if you immediately knew that a device interacting with your web or mobile app was previously involved with credit application fraud, chargeback fraud, synthetic identity fraud, or some other specific type of fraud? What if you knew that this device was associated with other devices with a known history of fraud? That’s what we mean by device reputation. Join us to learn how device reputation: Stops specific types of online and mobile fraud Uncovers more fraud with collaborative business subscribers Uncovers fraud rings and seemingly unrelated incidents of fraud Benefits your fraud strategy Watch and learn how iovation’s global consortium of devices and their associations with fraud and abuse, will benefit your organization.

1. EDDIE GLENN, SENIOR PRODUCT MARKETING MANAGER
eddie.glenn@iovation.com
FEBRUARY 2018
DEVICE REPUTATION
Has THAT Device Been Involved in Past Fraud?
WEBINAR

2. 2
STOPPING FRAUD WITH DEVICE INTELLIGENCE
DEVICE
RECOGNITION
DEVICE
ATTRIBUTES
ONLINE
BEHAVIOR
 Uniquely recognize any device
connected to internet
 Over 4.5B devices in our database
 We recognize devices as they
move amongst online/mobile
businesses
 Anomalous device attributes
 Jailbroken/rooted
 Geolocation inconsistencies
 Device velocity
 Account velocity
 Evasive
REPUTATION PATTERNS
& RULES

3. 3
REPUTATION
 Recognize the individual
 Report bad behavior
 Factual & detailed
 Associations with others
Charlie Bowdre

4. 4
UNDERSTANDING
DEVICE REPUTATION
 Recognize the device
 Report bad behavior
 Factual & detailed
 Associations with others

5. 5
 As a device visits your mobile/web
property over time, we need to
recognize it as the same device
Step 1:
DEVICE
RECOGNITION
… …
time
 If this device visits other web/mobile
properties, we need to be able to
recognize it as the same device
 We must minimize the chance of
mistaking a different device for that
device
• DEVICE RECOGNITION ACCURACY CRITICAL
• LOW FALSE POSITIVE RATE IMPORTANT

6. 6
 Our network is comprised of fraud and
security analysts from the companies
using our services
Step 2:
REPORT
BAD
BEHAVIOR
 When one of them confirms that a
particular device or account is involved
in fraud or abuse, they tag it
 This establishes a reputation for that
device or account
• 4,000+ Fraud & Security Analysts in our network
• 48M Confirmed Fraud and Abuse Reports placed
iovation Cybercrime Fighting Network
 The reputation tag is on the device or
account, not on the individual/person
INDUSTRY COLLABORATION IS KEY TO SHUTTING DOWN FRAUD RINGS

7. 7
Step 3:
DETAILED
REPUTATION
• 6 categories of reputation
• 45+ different fraud and abuse tags
• Who filed the report?
FINANCIAL
FRAUD
MISCONDUCT
CHEATING
IDENTITY
THEFT
POLICY
FRAUD
B2B
FINANCIAL
FINANCIAL FRAUD:
 Credit Card or ACH/Debit fraud
 Friendly chargeback
 Shipping Fraud
 Affiliate fraud
MISCONDUCT:
 Promotion abuse
 Abusive to support
 SPAM
 Profile misrepresentation
OTHER REPUTATION INFO:
• Who filed the reputation report? Your business or another iovation customer?
• Is the reputation report on that specific device or is it ‘associated’ to a tagged device?
Reputation specifies the type of fraud or abuse the device
or account is tagged with

8. 8
Step 3:
DETAILED
REPUTATION
AT A GLANCE:
Breakdown of reputation reports filed in 2017 from
iovation customers in the Retail & Financial Industries
0%
5%
10%
15%
20%
25%
30%
35%
40%
RETAIL INDUSTRY CY 2017 (1.7M total)
0%
5%
10%
15%
20%
25%
30%
35%
FINANCIAL INDUSTRY CY 2017 (1.4M total)

9. 9
Step 4:
ASSOCIATIONS
Credit card fraud
confirmed on this
user account & it
is tagged
CC
FRAUD
?
 What should you do?
 Stop the transaction?
 Review the transaction?
 Allow the transaction?
A new account
is being opened
PROMO
ABUSE
?
 What should you do?
 Stop the transaction?
 Review the transaction?
 Allow the transaction?

10. 10
Step 4:
ASSOCIATIONS
CHARIT
Y
RETAIL
A
BANK A BANK B
Stolen ID: New CC Synthetic ID: New CC
Stolen CC
Over time, iovation is able to determine that
these devices are associated with each other
FRAUD RING EXAMPLE
ACROSS MULTIPLE INDUSTRIES
CHARGE
BACK
For a while, no one realizes that there is a
problem even though the fraudsters have
successfully applied for new credit cards

11. 11
MAKING DECISIONS USING REPUTATION
M U L T I P L E F A C T O R S
THE TYPE OF
TRANSACTION
INVOLVED
(new account,
checkout, etc)
THE TYPE
REPUTATION
REPORT
(credit card fraud,
chargeback, promo)
WHO PLACED
THE REPORT?
(your company,
another iovation
subscriber)
DIRECT OR
ASSOCIATED?
(is reputation on that
specific device or an
associated device?)

12. 12
H O W I O VAT I O N R E TAI L C U S TO M E R S U S E R E P U TAT I O N
C Y 2 0 1 7
DENY
TRANSACTIONS
59%
REVIEW
TRANSACTIONS
16%
ALLOW
TRANSACTIONS
11%

13. 13
THE VALUE OF
DEVICE REPUTATION
PREVENT FRAUD BY:
 Looking beyond the user (stolen ID,
breached login credentials)
 Leveraging the experience of others
 Detailed intelligence that you can action
on in real-time
Friendly
Chargeback
Credit Card
Fraud
Promotions
Abuse
1st Party
Application
Fraud
Chip
Dumping

14. Q&A
THANK YOU!