Diversity Is The Key

Posted by Diarmuid Thoma on August 16, 2013

One of our core principles here in Trustev is that diversity in the data sources we use is the key to accurate and efficient online fraud prevention. While this may seem the logical approach to use but in reality it’s a concept little used in online fraud prevention today.

So what exactly do I mean by diversity in data? In terms of fraud prevention, diversity in data is simply having unrelated data sources to form a decision, and by unrelated I mean that they are unrelated or independent to each other. By taking this approach you can have unbiased decisioning as the data sources that led you to the ultimate decision were not from a single channel thereby allowing for a greater degree of certainty, and for Trustev this allows us to have a very high degree of certainty in the decisions we make for our clients.

In most current fraud prevention systems they use a rule based system designed around information the customer has entered and financial data provided at checkout, the problem with this approach is that all data is provided by the potential fraudster, meaning it's coming from a single source and therefore does not form the basis for accurate fraud prevention. So for example if a fraudster uses a German credit card with a German IP and shipping address many existing fraud prevention systems would let this go through as all the details of the order match up. But OF COURSE they match up, the fraudster gave them to you!!!

In Trustev today we use a mix of many different sources of data including Site Analytics, Customer, Social, Mobile and Financial data; because each of these information sources are coming from separate locations, this allows Trustev and of course the merchant to have a much more solid foundation on which to base their decision. So when that same fraudster comes through the Trustev system providing the same German credit card with a German IP and shipping details we look beyond that to their mobile details, proxy use, Social presence, devices details and of course multi-industry level historical data which allows us to identify the fraudster if we have seen them before on other Trustev incorporated sites no matter where or when that was.

We live in an information age and while some may find it overwhelming, those of us who embrace the rich tapestry of information all around us will find that it is the ultimate ally in commercial success.

Topics: fraud