Stopping Event e-Ticket Thieves in Real-Time
In addition to dealing with all the challenges that online digital goods businesses face, e-ticketing businesses also have unique challenges that the others don’t always encounter.
- Perishability. A concert, sporting event, or music performance happens only once. When fraudsters displace legitimate guests, those tickets are no longer available and additional tickets can’t be produced out of thin air to make up for the loss.
- Convertibility. In-demand tickets for high-profile events and venues can quickly and easily be turned into cash—which is greatly desired by fraudsters. There are all kinds of outlets on the web for buyers to find sellers of tickets. Even old-fashioned “scalping” can come in to play (fraudster buys tickets online, prints them out, travels to venue, and stands outside the event hawking the stolen tickets to hopeful fans congregated there).
- Deadline pressure. A lot of digital content–streaming music, games, videos, etc.–is available in virtually unlimited supply, whenever it is needed. But events take place on a specific day at a specific time. The pressure to complete a sale so the guest gets their tickets in time for the performance, sporting event, or concert is intense.
- Mobile. E-tickets are often purchased by people when traveling or away from their homes, which means lots of mobile transactions. In the Mobile Payments & Fraud: 2017 Report, 40% of online merchants said they believe that mobile fraud is increasing and 70% thought that standard eCommerce fraud prevention processes weren’t enough to fight mobile fraud. One in four felt that mobile commerce had a higher risk of fraud compared to conventional eCommerce. For these reasons, fraud prevention that operates in real time using dynamic data is absolutely vital to stopping event e-ticket thieves. But what does “operates in real time” and “using real-time data” actually mean?
- Uses dynamic data. When a transaction is submitted by an online ticket seller to the Kount platform, all the screening technologies, Artificial Intelligence (AI) and Machine Learning, algorithms, rule sets, etc. interact in that sub-second, real-time session using dynamic data, information, settings, parameters, etc. current and available at that precise moment. Each component of the session interacts simultaneously with every other component. As a result, the most complete, comprehensive, in-depth screening and scoring is achieved.
- Operates in real time. Every day, the world generates 2.5 exabytes of new data. That’s equivalent to filling up 28 laptop hard drives every second. During a real-time session, Kount’s technologies, AI and Machine Learning, algorithms, rule sets, etc. all access and analyze the most up-to-moment data available. There is no waiting on report updates, overnight technology upgrades, batch scheduled patches, or changes to be saved to a positive/negative list spreadsheet. It is as absolutely current as technologically feasible. Once again, the result is the most complete, comprehensive, in-depth screening and scoring possible.
How do these real-time capabilities enhance just one of the technologies that Kount uses to quantify the risk of fraud? Let’s take Order Linking as an example. Order Linking is a remarkably powerful technology that detects connections between discrete elements within the hundreds of data points associated with each device and transaction. For example, it can link associations between multiple transactions using device ID, email addresses, credit card accounts, IP addresses and many other attributes.
In a process reminiscent of the game “Six Degrees of Separation from Kevin Bacon,” all the data about bad behavior on the part of a fraudster that has happened up until the very moment of the real-time fraud detection and prevention session is accessed, analyzed, and factored into a fraud screening and scoring evaluation. A transaction that might have appeared legitimate to a human being can in fact be revealed as fraudulent. If Order Linking had been using data that was minutes or even seconds old, the result likely would not have been the same.
Want to know more about stopping digital event e-ticket thieves in real time? Watch the recorded webinar “The State of Mobile Payments and Fraud”, featuring Director of Risk Management & Fulfillment at e-ticketing company Entertainment Benefits Group.