ID Analytics, anticipating an influx of fraud attempts on the Web, has upgraded its anti-fraud software to incorporate more information about online purchasing behavior.

As the U.S. shifts to EMV-chip cards at the point of sale, the heightened security in retail stores will drive more fraudsters to target online merchants. Additionally, the recent data breaches at Target and other stores have put a wealth of fresh card data into fraudsters' hands.

ID Analytics' Transaction Protector 2.0 aims to shore up defenses on the Web by studying the information consumers typically provide to online retailers, such as addresses and phone numbers, to determine whether a transaction can be automatically cleared for checkout or if it needs further screening for fraud.

ID Analytics has partnered with device authentication providers to enable risk assessments on billions of devices for hundreds of millions of credit-using U.S. consumers. However, fraudsters may use multiple devices in an attempt to mask their behavior, and ID Analytics' software is designed to combat this practice.

"It is true a fraudster can cycle through devices," says Aaron Kline, director of e-commerce for ID Analytics.  "Being able to access a real-time, cross-industry identity data consortium closes the gap of a fraudster switching devices rapidly."

Another product, Transaction Advanced Intelligence, provides online retailers with specific answers to identity-related questions, including confirmed fraudulent behavior, demographics/mode of living, online profile, and online shopping patterns, relationships, velocity and validation.

The information enables online retailers to develop more complete rules-based strategies for their businesses to improve accuracy and efficiency of manual reviews, ID Analytics says.

The identity data consortium captures the personally identifiable information used in the online transaction, Kline says. "No matter what device the fraudster uses, he or she will still have to input personal information to complete a transaction, and we can capture the bad behavior there."

Merchants are facing increasingly sophisticated attacks from cybercriminals, says Julie Conroy, fraud expert and analyst for Boston-based Aite Group, in a statement from ID Analytics.

"It's more important than ever for online retailers to be able to detect fraudulent transactions and at the same time improve conversion in new ways," Conroy says.

ID Analytics uses the ID Network, a cross-industry consortium-based intelligence system that provides insight into consumer behavior. That technology helps merchants "improve their ability to isolate fraudulent transactions, while improving the customer experience for the vast majority of customers who are good," Conroy says.

Kline views biometrics as a next major step in fighting payments fraud.

The idea that "we can capture a fingerprint, voice print or facial recognition to authenticate a user" has a promising future in fraud prevention, Kline says.

"It's early in this game and device manufacturers like Apple and Samsung are just beginning to enable this type of technology," Kline says. "But it's fascinating to us that there will be a new way to establish the validity of an individual in a connected world."

Apple built a fingerprint scanner into the iPhone 5s, and Samsung will have a fingerprint scanner in the Galaxy S5 smartphone.

Discover also recently began testing biometrics through an agreement with Natural Security.

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