Device ID Helps Protect High Risk Merchant Accounts

Device identification is one element of an overall fraud detection strategy used to help protect high risk merchant accounts.  Device ID works by assigning a token to devices used to access a website.  The tokens provide a unique identification which are used to track all transactions initiated from that particular device.

Device identification is only one part of an overall fraud prevention strategy and are effective in the following situations:

1.  Tracking returning customers.  Although the device tracking does not guarantee that the same user is behind the device, it does give some positive indication that a transactions is being initiated by a customer who has bought from the site in the past.
2. Building a buyer profile.  Customers use different devices to access and buy from a site.  Device ID can associate multiple devices with a single buyer.
3. Identifying buyers who use multiple website profiles to perpetrate fraud.  For example, users that use different profiles but access the site from a single device can be identified as a single entity.
4. If the device is identified as being associated with transactions that were fraudulent in the past, the current transaction can be declined, helping eliminate potential of losses for the merchant
5. Most repeat buyers will access a site from a devices used in the past.  If a buyer uses different devices each time the site is accessed, it could indicate potential fraudulent behavior.