LexisNexis® ThreatMetrix® helps Dai Nippon Printing secure card-not-present (CNP) payments, reducing fraud losses in the 3-D Secure (3DS) transaction authentication workflow.
Dai Nippon Printing (DNP)
DNP uses risk-based authentication from LexisNexis® ThreatMetrix® to enhance risk decisioning as part of its 3DS workflow. Acting as the ACS provider for multiple Japanese card issuers, DNP can reliably identify high-risk transactions in near real time, helping card issuers decide whether to accept, reject or step-up CNP payment transactions. DNP provides a bespoke partnership with LexisNexis ThreatMetrix for those individual card issuers, allowing each organisation to implement risk-based authentication on their own payment workflows, with the ability to fine-tune rules and risk tolerance.
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“The ThreatMetrix solution allows us to provide a best-in-class service to our issuers, helping to identify new and evolving fraud threats and respond with effective mitigation strategies.”
DNP is a comprehensive printing company that was founded in 1876. By taking advantage of its P&I (printing and information) strengths, the company has expanded into a wide variety of business fields, including packaging materials, building materials and electronics. The company is also focusing on businesses that include the environment, energy and life science. DNP’s Information Innovation Operations business unit focuses on digital marketing promotion as well as the expansion of cashless-settlement business. The unit also promotes BPO business that involves handling the operations of other companies, as one way to help address needs related to manpower shortages and work-style reforms. The unit boasted extensive domestic results in the marketing and settlement/authentication service businesses.
As part of DNP’s settlement/authentication service businesses, the company provides a 3DS authentication solution, acting as the ACS provider for credit card issuers to authenticate CNP payment transactions using the 3DS protocol. During its dialogue with client companies, DNP identified the need to implement an effective risk-based authentication strategy to help issuers make more informed risk decisions and reduce fraud losses. This was particularly timely given the global escalation of CNP fraud.
With LexisNexis ThreatMetrix, DNP could:
Electronic payments have revolutionised the way consumers transact, with cashless transactions now accounting for an ever-growing share of the Japanese market. However, with this change in consumer behaviour comes heightened risk, as fraudsters attempt to exploit the opportunities that digital payments present.
In its capacity as an ACS provider, card issuers were raising concerns to DNP that fraudsters were adopting ever-more sophisticated spoofing techniques to pose as legitimate consumers, often armed with a full array of stolen and spoofed credentials.
Issuers were faced with a growing fraud problem and escalating fraud losses. The key challenge was that standard identity verification and authentication checks could be easily passed by a fraudster in possession of a stolen identity and/or credit card credentials.
DNP needed a way to help issuers detect high-risk transactions, looking beyond static data and leveraging dynamic, near real-time digital identity data. DNP could alert issuers to, for example, a payment made using a stolen credit card, a device that had not previously been associated with a particular consumer, or suspicious transaction or location behaviour.
Enhancing 3DS risk decisioning using global digital identity intelligence
The LexisNexis ThreatMetrix solution is built on a crowdsourced repository of digital identity intelligence, harnessed from billions of global transactions across thousands of websites. The LexisNexis® Digital Identity Network® becomes more powerful with every transaction processed, giving organisations access to near real-time intelligence relating to consumers’ digital identities.
This means that while a fraudster may have access to a stolen credit card, the Digital Identity Network can help issuers understand whether that credit card is being used by a new device, in a different location, with a different set of transaction behaviours, or from a device that is potentially compromised or infected with Malware.
Using hundreds of pieces of data to risk-assess every digital payment, DNP can therefore help issuers understand the trust or risk of a card-not-present transaction in near real time.
Extending the solution to allow tailored implementations for individual issuers, with sharing of confirmed fraud events via consortium
Following the success of the risk-based authentication approach for 3DS payments, DNP offered rule optimisation to individual issuers. This meant that issuers could implement tailored risk-based authentication approaches on their own online payment journeys, fine-tuning rules and risk scores to suit their particular fraud thresholds. DNP has currently onboarded more than 10 different Japanese issuers onto the LexisNexis ThreatMetrix platform, helping to build a fraud prevention solution that operates across the region.
To extend the success of these partnerships, these issuers have built a payments fraud consortium, using LexisNexis Risk Solutions Consortium functionality. This allows consortium members to share data related to confirmed fraud events with additional trust and context, within a defined group of organisations.
“Consortium has been a game-changer for us—we are able to share what we are seeing with peers in our network, allowing us to collaborate and identify common fraud attributes and emerging attack vectors.”
Specific features of the LexisNexis ThreatMetrix solution that help DNP reduce fraud losses from CNP transactions