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Where’s the Common Ground for Russia & Ukraine? Fraud

posted on: Fri Sep 05 2014

Imagine coming home to a flooded kitchen. You can see the water, there is obviously a leak but you have no idea where it’s coming from or what caused it. Until Brian Krebs and others started to connect the dots earlier this week, we knew rings of criminals in both Russia and Ukraine had a significant batch of data and credit card numbers available for sale. Now we see the dots pointing to a massive breach at Home Depot that may eclipse what happened at Target last year.

Clearly, connecting the dots to Home Depot helps alert potential fraud victims who shopped at the home improvement retailer. But that’s just one segment of victims when data and credit card breaches happen. The moment this information was stolen, every online retailer became a target(no pun intended). And that’s why we connect an entirely different set of dots to protect them.

Picture your last online transaction. In addition to your credit card information, you provided your address, email and other details. You also transmitted information about the device you used to complete the transaction, whether it was your laptop, tablet or smartphone.

Say you made another transaction today from a different device and different email but used the same credit card. Not exactly out of the ordinary. But when 20 emails are tied to the same credit card or 20 credit cards are linked to the same device, the likelihood of fraud increases considerably.

More than a hundred pieces of data can be involved in a single transaction. As part of our order linking process, we monitor all of this information to determine the likelihood of fraud. And because we protect and partner with some of the world’s most recognizable brands, we see millions of transactions every day. So when a breach happens, we see the signs weeks, and sometimes months, before its public. This visibility provides unique protection to our customers.

Let’s flip it to the fraudster’s perspective (and if you want to play that role more extensively, check out Fraud Tycoon). They have fresh, clean information that they can “weaponize” to steal merchandise and services that they can turn into cash. Because they aren’t the only ones with this information, it’s a race from the moment they purchase the breached data to when the fraudulent information is discovered and stopped.

While massive online enterprises like Apple and Amazon can see millions of transactions within their closed e-commerce walls, no retailer has a broad enough view of worldwide transactions to see what’s coming. And if you aren’t Apple or Amazon, how could you know this seemingly legitimate data is from an unknown breach?

With order linking, we do. And we can stop the water before it touches your kitchen floor. Metaphorically speaking.

To understand how order linking works, visit our Kount Complete page and learn about how this information helps determine the Kount Fraud Score – a predictive model that helps you determine the risk of every transaction.