Featured post

How a risk score saves you time and money

Welcome to a new installment of MaxMind’s Best Practices Blog Series!

In discussing best practices, our focus is on efficient fraud screening methods which stop fraud while providing a positive customer experience.

Key to efficient fraud screening is automating as many decisions as possible.

In this post, we discuss the crucial role of minFraud’s riskScore to automated decision making.

What is the riskScore?

The riskScore is the starting point for fraud detection best practices. It indicates the likelihood that a given transaction is fraudulent, and so should be calculated for each e-commerce transaction.

The riskScore is generated by submitting information about the transaction for analysis. Possible inputs include IP address, shipping address, email MD5 hash, and the IIN (Issuer Identification Number, also commonly referred to as BIN); it’s best to provide as many inputs as possible. The minFraud service then checks these inputs against a vast history of transaction data and returns the riskScore.

How do I use the riskScore, once I have it?

The beauty of a risk score is that it enables you to use your manual review resources wisely. You can automatically accept orders which receive a low riskScore, automatically reject orders which receive a high riskScore, and manually review all other transactions.

What’s the magic number at which I should do manual review?

It’s important to choose an appropriate risk score threshold. If it is too low, you will reject orders which would have otherwise contributed to your revenue; if it is too high, you run the risk of incurring chargebacks unnecessarily.

We recommend upfront research so that you find the risk score that matches the specifics of your business. Take a look at your historical data on chargebacks; what was the riskScore associated with these transactions? Keep track of decisions made during manual review and the riskScore associated with each. Use historical data to identify trends and adjust your riskScore threshold accordingly. And of course factor in your personal tolerance for risk.

So how does a riskScore save me time and money?

Use the riskScore to automate processing of low and high risk transactions. Save your manual review resources for transactions that need closer scrutiny. Save money, reduce chargebacks, all while you maximize conversions.

Reverse Geocoding for the Masses – Apache Nutch

The Apache Nutch community has been hard at work developing an open source web crawler. Nutch is a mature, production ready web crawler powering data acquisition, search and discovery for a broad spectrum of organizations over a broader spectrum of use cases. The Nutch 1.x branch enables fine grained configuration and relies on Apache Hadoop™ data structures, which are great for batch processing.

This post documents how reverse geolocation features were added to Nutch via MaxMind’s GeoIP2-java API, making good use of server IP addresses acquired within a Nutch crawl. Readers will take away:

  • insight into why geocoding is appealing in today’s markets,
  • practical code examples from the Nutch 1.x branch, showing how to use the GeoIP2-java API in order to geocode based on server IPs.

Continue reading

MaxMind announces corporate giving program

MaxMind is pleased to announce our corporate giving program – we plan to give away over 50% of our profits to charity.

Since its inception, MaxMind has focused on creating value for our customers, especially where the ratio of value to effort is high. It is exciting how technology enables us to write code once and deploy it to thousands of customers to solve problems. For marketing, we focus on strategies that have high impact per dollar invested, including detailed, transparent information about our products on our website and our freemium model for geolocation databases.

Similarly, with charitable giving, we look for opportunities to apply research to find how our funding can have high impact per dollar invested. Sometimes the most cost-effective program can be surprising. For example, according to MIT’s Abdul Latif Jameel Poverty Action Lab, deworming may be one of the most effective ways to increase student participation in school.

The for-profit space seems more and more crowded with great companies pursuing great ideas. There appears to be no shortage of angel and venture capital for technology startups, and competition is intense. On the other hand, the non-profit space appears a lot less crowded, as there are fewer funders pursuing innovative solutions.

We would like to thank our customers for making this possible!

To learn more about MaxMind’s charitable giving, visit our Corporate Giving page.

 

MaxMind Speaking at MRC. March 24, 2015 – Mark Your Calendar!

MRC_Vegas_15(Logo) (1)

MaxMind, the industry-leading provider of IP intelligence and online fraud detection tools, has been invited to present at the 2015 Merchant Risk Council (MRC) eCommerce Payments & Risk Conference in Las Vegas. Our co-presenters will include two of the world’s most prominent eCommerce companies: Orbitz, a leader in the online travel industry, and Western Union, a global money transfer giant. MRC’s own Global Director of Programs and Marketing will bring his extensive industry experience to the presentation as well. Whitepages Pro, one of the major providers of contact information in North America, will moderate our lively presentation.

cropped-cropped-maxmind_logo.png   Western Union  Orbitz  White Pages Pro

Manual Review Best Practices
Learnings from Peak Buying Times in 2014

We invite you to attend this panel discussion to learn more about best practices for preparing for, executing and evaluating your manual review processes. You’ll benefit by hearing specific examples of unique situations and fraud trends that caused online merchants to alter their tools or procedures. You’ll also have the chance to review some questionable transactions and engage in discussion about whether to approve or reject them.

Mark Your Calendar!
March 24, 2015
1:30 p.m. – 2:15 p.m. PT
Aria Resort, Las Vegas

We hope to see you at the Presentation or just stop by booth #422 and say, “Hello!”

Contact us today at mrc@maxmind.com to schedule a meeting during the event. We look forward to seeing you at MRC’s 2015 eCommerce Payments & Risk Conference – the largest professional development and networking event for eCommerce payments and fraud professionals in the Americas.

What Happens in Vegas … can stop online fraud!

jenn
Jenn Sessler, MaxMind’s Director, Business Development, answers questions at MRC 2014.

Proxy detection – why fraudsters give proxies a bad name

When it comes to fraud detection, finding proxies is a big topic. But why? Fraud detection begins with thinking intelligently about the IP address associated with a transaction. Where is that IP address, and how does that location relate to other transaction data? Whereas most IP addresses inspire confidence, those associated with a proxy generate suspicion.

Let’s take a closer look at proxy detection. Continue reading

Apple Pay: What does it have in store for online merchants?

In the world of accepting online payments, credit and debit cards are the industry standard. And for good reason– they’re convenient, and they’ve been around for decades.

But while they’re the go-to payment option, merchants continue to struggle with their vulnerability to fraud.

So that got us wondering– at some point, the credit card was a new invention and appeared to be the payment solution of the future. It was a paradigm shift from the written bank check, which was itself an invention over cash and hard currency. And each option has pushed us into a new era of thieves trying to crank out a payday– sometimes digital, sometimes physical.

So, what’s next for the digital age? Apple is hoping to introduce a new era with Apple Pay. Does it have the moxie to move us beyond the credit card and associated e-commerce fraud?

Mobile payment: Apple Pay
You can’t tap your scroll wheel without clicking through a headline for Apple Pay. And it makes sense– digital-physical hybrid payment options have been trying to take hold for several years now.

While Google and Microsoft have tried their hand at mobile payment methods, Apple’s recent release of Apple Pay is the first to show encouraging signs of nascent adoption. With the smartphone now ubiquitous, the ease of use at the cash register for this type of payment method becomes more compelling.

Apple Pay has immediate benefits for merchants taking CNP payments as well. Apple Pay incorporates fraud detection technology such as TouchID biometric sensors, NFC, and geolocation data. Apple is banking on these features to make Apple Pay more attractive to merchants, and is even going so far as to assume some of the risk of fraudulent transactions themselves.

The future of payment security
Apple’s initial Apple Pay push covers 35 brick and mortar retail stores and provides a new opportunity for widespread use. But considering the amount of consumer data and financial information involved, consumers and merchants alike are sure to closely monitor what E-commerce fraud detection looks like as new payment options spread online within Apple apps.

NFC payment systems are incorporating unique digital signatures and Apple Pay is moving personal data off servers to thwart fraud. At the same time, Apple Pay and other mobile payment options are really no more than glorified credit cards. Is the new technology real progress, or will the fraudsters just step up their game? Adaptation of the new payment methods will be slow, so it will be some time before we can tell.

MaxMind website and services unaffected by Heartbleed Bug

MaxMind’s website and services were unaffected by the recently announced Heartbleed bug in the OpenSSL cryptographic software library.

The discovery of the Heartbleed bug means your encrypted connections with websites that used particular versions of the OpenSSL library (versions 1.0.1-1.0.1f and 1.0.2-beta1) may have been compromised, exposing your logins, passwords, and other data. MaxMind does not use a vulnerable version of the OpenSSL library on internet-facing servers. So you need not worry that your credentials or data were compromised.

This article on ReadWrite describes the bug in more detail as well as what to do to determine if your servers are vulnerable and how to protect yourself personally.

We strongly recommend you change your passwords on any sites affected by the bug. You should assume a site was affected unless you hear otherwise. Mashable and CNET provides a partial list of sites affected by the bug.

Please contact support@maxmind.com with any questions.

“AVS” and “CVV” Declines – Maximize Conversion AND Fraud Protection

img for blog

Welcome to our first installment of MaxMind’s Best Practices Blog Series!

In this post, we discuss using the minFraud Service in conjunction with your AVS and CVV declined transactions in order to help you increase your conversion rate and stop more fraud.
Continue reading

Who has the most accurate IP geolocation data?

free-map-navigation-psd-21

When it comes to choosing between the multiple IP geolocation data providers out there, our customers have told us they are most interested in one thing – accuracy. The question is, who provides the most accurate data?

Continue reading

MaxMind Speaking at MRC. March 20, 2014 – Mark Your Calendar!

MaxMind, the industry-leading provider of IP intelligence and online fraud detection tools, has been invited to present at the 2014 Merchant Risk Council (MRC) eCommerce Payments & Risk Conference in Las Vegas. We are excited to be joined by a top Risk Analyst from our merchant partner, Shopify, the leading commerce platform that allows anyone to easily sell online, at their retail location, and everywhere in between. Continue reading