By Alisdair Faulkner, Chief Products Officer, ThreatMetrix
The rapid influx of recent retail data breaches, including Neiman Marcus and Target, prove that cybersecurity needs to be a bigger priority for both retailers and consumers. Data in use following a breach includes personally identifiable information, such as names, email addresses, and credit card numbers, and it’s essential that this data be protected against use by cybercriminals.
Through understanding how stolen identities are used against customers after a data breach, retailers can recognize the importance in protecting data in use. Credit card fraud, phishing and banking transactions are just some of the ways cybercriminals use stolen data, and occasionally the data is sold to online crime rings. New accounts are often registered with stolen data used to create a false identity, so companies should be especially vigilant in verifying new users.
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A few strategies retailers can implement to protect identities in use without negatively impacting the customer experience include:
- Advanced Device Identification – Verifying the device in use can help retailers identify returning visitors that have wiped cookies or changed IP addresses, flag suspicious activity performed on other sites and highlight discrepancies such as mismatched time zones and browser/operating system combinations.
- Malware Detection – Detecting hidden Trojans and page modification can alert companies to malware attacks in real time.
- Behavior–Based Identity Proofing – Analyzing patterns of usage including locations, identities, devices and associations over time provides ‘spoof-proof’ identify screening.
- Anonymized Trust Federation – Passively leveraging prior authentication and verification information across channels reduces customer friction and improves the end-user’s experience.
Perhaps the most effective tool in preventing cybercrime is an anonymized trust intelligence network that can differentiate between authentic and suspicious transactions, and other online activity. Using real-time analytics, a trust intelligence network can evaluate logins, payments, new account registrations and remote access attempts for validity.
Now is the perfect time for retailers to raise awareness about the importance of protecting identities in use. Data Privacy Day, sponsored by the National Cyber Security Alliance, was this week on January 28. The annual awareness day encourages business and consumers to make protecting privacy and data a greater priority.
Alisdair Faulkner is a technology entrepreneur who has nearly two decades of experience building products and delivering mission critical technologies that are run by the world’s most trusted brands. Faulkner is a noted industry expert in issues relating to online fraud, cybercrime, identity theft, information security and networking technology. As Chief Products Officer and Co-Founder at ThreatMetrix, he is responsible for product management and strategy. Prior to ThreatMetrix, Faulkner was a Founder and Head of Products and Business Development for NetPriva, a leading network performance software provider, acquired by Expand Networks now Riverbed.
