How to use device fingerprinting for Fraud Detection

How to use device fingerprinting for Fraud Detection provides an extra layer of security that reduces fraud and improves cybersecurity. It is a valuable tool that helps to detect unauthorized access attempts, new account opening and transaction fraud as well as fraud related to identity theft. It also helps to reduce chargebacks, refund requests and other costly issues that can be related to fraudulent activities.

This technology collects crucial device telemetry during online interactions including hardware details, software information (such as operating system version, installed fonts and plugins), geographic data and internet protocol (IP) address and then creates a device fingerprint that can be compared to a database of known fingerprints to identify unique identifiers. This enables the site or app to identify suspicious activity and take action such as additional authentication steps, temporary restrictions of access or blocking of devices that have been identified as malicious.

How to Use Device Fingerprinting for Fraud Detection

It is worth noting that this method of identification can be spoofed by cybercriminals and other bad actors which is why it needs to be combined with other fraud detection techniques such as IP reputation analysis, user behavior analytics and anomaly detection algorithms. Additionally, users can change their device settings and customizations which can impact the accuracy of the fingerprinting process.

As a result of these and other challenges, it is important to understand that fingerprinting should only be used with the consent of the end user and when there are clear and transparent communications about how the data will be utilized. This is to ensure that GDPR and other regulations are met while providing a secure enhancement to existing fraud prevention tools.