PORTLAND, Ore. – June 10, 2008 – iovation, the Device Reputation Authority™ for the Internet, today said online businesses face monumental challenges as the rate of online fraud continues to rise in proportion to online sales. The increase in Internet fraud and abuse is making it more cost prohibitive and difficult to review online orders one at a time, which limits the growth of eCommerce.
"Online businesses are struggling to keep pace with rapidly increasing fraud threats," said Scott Olson, vice president of marketing at iovation. "The current method of risk scoring, which relies heavily on manual reviews, is not only creating huge inefficiencies and profit leaks, but threatens to undermine a company's success. Device reputation is the missing component to a more efficient and effective fraud management process."
With eCommerce growing by 20% annually, online businesses need to associate accounts and orders with a common element and reduce the overall number of reviews to remain competitive and profitable. iovation's device-based fraud management service exposes device and account relationships to group many seemingly unrelated online orders into smaller numbers, which eases the burden of manual reviews and increases operational efficiencies. As a result, iovation's customers catch more online fraud, reduce operating expenses, and increase revenue through more precise risk management.
A new commissioned TEI study conducted by Forrester Consulting, "The Total Economic Impact™ of iovation ReputationManager", showed that a Fortune 100 financial services organization using iovation's fraud management service in its fraud detection process was able to reduce losses from fraud exposure while improving efficiency. The study found that the company, which was already employing the industry's best practices for fraud protection, experienced a two-year, risk-adjusted ROI of 321%. By reducing losses from fraud exposure and improving efficiency within their fraud management process, the company saved over $8 million in two years. The organization's payback period from the investment in iovation was six months.
The study specified that the organization reduced loss from fraud exposure by "identifying fraudulent applications early in the process and reducing the number of false positives." False positives increase the number of reviews and inefficiencies inherent in risk management. Additionally, the company improved efficiency within its fraud detection process by "reducing time spent diagnosing potentially fraudulent applications."
iovation's patented device identification technology and reputation management service identifies physical Internet-enabled devices connecting to a network and shares the reputations of more than 60 million unique devices across multiple networks to protect online businesses from all forms of online fraud and abuse.
To read the commissioned TEI study conducted by Forrester Consulting, "The Total Economic Impact™ of iovation ReputationManager", visit http://www.iovation.com/forrester. iovation will host a webinar discussing the findings on Tuesday, June 17 at 11:00am PST. To register for this event, visit http://www.iovation.com/ROIwebinar.
iovation, headquartered in Portland, Oregon pioneered the use of device reputation for managing online fraud, abusive behavior and multi-factor authentication. Today, iovation manages the reputation of millions of Internet-enabled devices worldwide, allowing its customers to control online fraud and abuse while benefiting from sharing device reputation intelligence. For more information on iovation and the company's products, visit www.iovation.com.