Press Releases

June 10, 2008

iovation Has Helped Customers Stop Over a Million Fraudulent Activities in 2008

World's Only Device Reputation Network Reports Geographic Trends in Online Fraud and Abuse

PORTLAND, Ore. – June 10, 2008 – iovation, the Device Reputation Authority™ for the Internet, today announced it has helped customers stop more than a million online fraudulent and abusive activities in the first half of 2008. iovation, which will process more than one billion device reputation queries this year, reported that in the first quarter alone it helped customers block over 900,000 fraudulent and abusive activities coming from 230 different countries and provinces.

"As eCommerce continues to grow at a rapid pace, iovation is seeing similar growth trends in the amount of online fraud and abuse that is occurring across multiple industries," said Scott Olson, vice president of marketing, iovation. "During the first quarter, we saw consistent geographic devices and accounts targeting specific verticals. Along with these findings, we are very pleased to report the impact iovation is having in helping customers stop online fraud and abuse."

iovation, which identifies physical Internet-enabled devices and accounts with histories of fraud and abuse activity, shares its Device Reputation Authority™ network of over 60 million unique device reputations across multiple networks to protect online businesses from all forms of online fraud and abuse. In Q1 of 2008, iovation reported performing more than 100 million reputation checks on devices coming from the United States. The U.S. topped the list of countries with the most reputation queries, followed by Canada and the United Kingdom with 11 million and 8 million, respectively.

Of the countries that iovation performed at least 250,000 device reputation queries in Q1, Israel topped the list of the highest percentage of denied transactions at 15%. The Philippines and Belgium rounded out the top three countries with the highest online fraud rates at 8% and 7%.

iovation, which provides real-time fraud and abuse protection for a number of verticals such as Online Retail, Internet Gaming and Gambling, Financial Services, and Online Social Networking, also reported industry-specific geographic fraud trends based on device reputation queries it performed in Q1. Those findings included:

• For iovation customers in the Massively Multiplayer Online Gaming (MMO) space, devices coming from Israel had the highest percentage of denied transactions at 34%. Mexico and Australia followed with 19% and 13%, respectively.
• For iovation customers in the Online Social Networking sector, devices coming from Belgium had the highest percentage of denied transactions at 15%. The Philippines and Nigeria followed with 11% and 7%.
• For iovation’s Online Retail customers, devices coming from Ghana had the highest percentage of denied transactions at 20%. Vietnam and Lebanon followed with fraud rates of 14% and 7%.
• For iovation customers in Internet Gambling, Panama had the highest percentage of denied transaction at 6%. Costa Rica and Canada followed with 3% and 2%, respectively.
• For iovation customers in the Financial Services sector, which denied 0.30% of their worldwide transactions in Q1, the Netherlands had the highest percentage of denied transactions at 1.66%. Germany and the UK followed with 1.24% and 1.04%, respectively.