Modern cyber fraudsters regularly invent new ways to steal confidential information. The basis of their activities primarily lies in anonymity. They have many ways for covering their identities: private browser sessions, frequent IP address changes, use of emulation devices, and much more. However, a combination of these options can be a great help in identifying scammers and preventing them from doing anything before they damage your business. Learn how fingerprinting technology works and how it can protect you from chargebacks and frauds.
The Essence of the Method
Device fingerprinting is the process of collecting information about a specific device and identifying it. Using the method, you can compose a portrait of a site visitor based on many factors: from its screen resolution and language used to IP address and CPU architecture. The technology is named so by analogy with human fingerprints.
It means that each device should have a unique and consistent combination of settings and software installed that makes it stand out from millions of others. However, this is not the case mostly, as both legitimate customers and fraudsters have the opportunity to change the fingerprint of their devices by simply updating the browser version or changing the list of plugins
Thus said, device fingerprinting should be used as a part of an end-to-end risk management strategy, not as a standalone solution.
What It Protects From
It is primarily a proactive method that allows you to predict the actions of site visitors based on data about their devices. This technology is currently used to protect against various scams like:
- Chargeback fraud
- CNP fraud
- Identity theft
- Interception fraud
- Bot attacks
- Affiliate fraud
- Account takeovers
Device fingerprinting significantly complicates cyber fraudsters’ lives since it becomes not so easy for them to hide their identities and pretend to be reliable customers. In the process of data management, each device is assigned an identifier. After studying it, you, as a business owner, can draw conclusions about the reliability of a particular client and take appropriate measures, for example, blocking an account or suspending their order.
Is Device Fingerprinting Efficient
In simple terms, this method is somewhat reminiscent of the cookie collection known to many. However, it is more complex and versatile. Companies have long used the technology for analyzing consumer actions and marketing purposes. Recently, it has also started to be used to protect data from thieves and scammers.
While this technology has proven to be effective, there are workarounds that hackers can use. That is why it should be considered as part of a comprehensive protective measure. Fortunately, modern services work to improve this method, making it difficult to spoof devices and hide scammers’ true identities.
Anticipate the Actions of Fraudsters
It is always best to get ready for potential issues ahead of time. Data protection professionals strongly recommend taking proactive measures to prevent the theft of confidential information, as the consequences might be catastrophic. Due to the scammers’ actions, your business can lose not only money but also your entire customer base and good reputation. Implementing effective protection methods will cost you much less than cleaning up the consequences.