How Advanced Device Fingerprinting Optimizes ATO Fraud Prevention

Forget ‘billions’, fraud is now a trillion-dollar challenge according to McKinsey, with phishing, account takeovers (ATOs), and credential-based attacks driving unprecedented losses. Needless to say, this step change underlines the urgency for scam-prone enterprises to add further protective layers as part of a fraud prevention strategy that combines emerging technologies.

One such method is advanced device fingerprinting able to accurately map unique user-device relationships to detect device usage and behavioral anomalies in real time. In this way, advanced device fingerprinting delivers precision that lesser fingerprinting techniques can’t, providing contextual insights required to combat and even anticipate fast-evolving modern threats like phishing-related scams, credential stuffing and account takeover (ATO).

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What is device fingerprinting?

Device fingerprinting is a sophisticated method used to identify and track devices by analyzing a combination of hardware and software attributes. These attributes can include the device’s operating system, browser version, installed plugins, screen resolution, and more. Together, these data points create a “device fingerprint” — for each device. This identifier allows organizations to recognize and track devices across different sessions and platforms.

In cybersecurity and fraud prevention, device fingerprinting enhances security by detecting anomalies in device configurations and behavior. By mapping these unique attributes and analyzing user-device interactions, organizations can identify suspicious activities, prevent unauthorized access, and protect against fraud such as ATOs and credential-based attacks.

What Are the Advantages of Advanced Device Fingerprinting for ATO and Fraud Prevention?

Device fingerprinting isn’t new, but it has evolved, using different methods to achieve more reliable outcomes. Advanced device fingerprinting improves those outcomes by delivering the following advantages. 

Up to Twice the Detection Accuracy

Advanced device fingerprinting maps unique user-device relationships and assigns a unique ID to every device, eliminating the overlaps and inaccuracies common with traditional methods. This precision can double the detection accuracy, ensuring malicious devices are correctly identified without frustrating legitimate users with high-friction measures like suspicious login verification.

High Fidelity Detection Across All Attempts

Memcyco identifies both failed and successful credential stuffing or login attempts at the browser level, offering high fidelity detection and early-stage prevention. This browser-based approach prevents attacks from escalating to the server, improving overall system security.

Reduced Credential Stuffing False Positives by Over 75%

By analyzing behavioral baselines and dynamic patterns, some ATO protection solutions that use advanced device fingerprinting significantly reduce false positives, detecting both failed and successful login attempts. This allows for early, more accurate detection of potential credential stuffing and ATO attacks, helping save potentially millions annually in 

Device-User Contextual Insights

Some device fingerprinting techniques doesn’t just analyze device usage; they also maps the relationships between users, devices, and sessions. This enables:

• Flagging malicious devices even when used by unsuspecting users who don’t know the device has been used to prepare and execute attacks.
• Differentiation of legitimate users accessing accounts from new devices.

These two advantages alone deliver powerful advantages that optimize fraud detection and prevention outcomes.

Who Uses Device Fingerprinting?

Fingerprinting devices is a technique that’s valuable in the following scenarios, and not just for fraud prevention.

Banking and Financial Institutions

Banks leverage device fingerprinting for secure authentication processes. It aids in verifying whether a user is accessing their account from a recognized device, thus preventing account takeovers and unauthorized transactions.

E-commerce Platforms

Online retailers implement device fingerprinting to secure transactions and detect suspicious activities. This helps prevent fraud during purchases and safeguards customer data.

Airlines and Travel Brands

Airline and travel brands use device fingerprinting to prevent fraudulent bookings, unauthorized changes to flight reservations and flyer miles theft resulting from loyalty account takeover. By detecting non-authenticated users or anomalies in booking behavior, airlines can protect against booking manipulation and ensure legitimate transactions.

Government and Law Enforcement

Government agencies and law enforcement may employ device fingerprinting for tracking criminal activities and identifying suspects based on device usage patterns.

Healthcare Providers

In the healthcare sector, device fingerprinting is used to protect sensitive patient data from unauthorized access, ensuring compliance with privacy regulations.

Cybersecurity Firms

Cybersecurity firms use device fingerprinting to enhance security measures by identifying potential threats. It helps in monitoring unusual behavior patterns that could signify security breaches or attacks.

Which Attack Types Can Advanced Device Fingerprinting Combat?

1. Phishing and Account Takeover (ATO)

Phishing attacks often lead to stolen credentials and unauthorized access. Advanced device fingerprinting identifies untrusted devices attempting logins, using both device history and behavior analysis. By stopping unauthorized devices in real time, it prevents ATO before it happens.

2. Credential Stuffing

Credential stuffing attacks flood login systems with stolen credentials, aiming to breach accounts through automation. Advanced fingerprinting detects these attempts directly at the browser level, flagging both failed and successful login attempts in real time to ensure comprehensive protection.

SIM Swapping

SIM swaps hand criminals a backdoor to sensitive accounts. Advanced fingerprinting identifies new or suspicious devices attempting access after a SIM change, blocking unauthorized actions and alerting security teams.

Flight Booking Manipulation

Fraudulent bookings can wreak havoc, especially in industries like travel. Advanced fingerprinting steps in to detect and block non-authenticated users trying to manipulate systems, safeguarding legitimate transactions.

Remote Access Fraud

Remote access fraud often involves attackers taking control of legitimate devices or accessing accounts during shared sessions. Advanced fingerprinting detects anomalies in device usage and session behavior, ensuring suspicious access is flagged and blocked immediately.

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How Memcyco’s Advanced Device Fingerprinting Helps Enterprises Save Millions in ATO Prevention

Memcyco’s device fingerprinting technology helps flag and block malicious devices, credential stuffing and potential account takeovers, securing customer accounts without adding friction to legitimate users’ experience.

Memcyco’s approach focuses on three key capabilities:

Unique Device Identification

Memcyco assigns a unique identifier to each device, ensuring precise recognition and tracking across sessions. This reduces the risk of duplicate IDs or false positives, providing a reliable method for device identification.

Device History Tracking

Beyond only tracking user history, Memcyco maintains a detailed history of each device’s interactions. This allows for the detection of anomalies such as unusual login times or new locations, enhancing the ability to identify suspicious behavior.

Extended Identity Profiles

Memcyco builds comprehensive user behavior profiles by analyzing login habits across different parameters, including times of day, days of the week, locations, and devices used. This extended identity helps distinguish between legitimate and malicious login attempts, confidently preventing ATOs.

This multi-layered approach enables Memcyco to detect and prevent fraud in real time, safeguarding businesses against phishing, credential stuffing, and other cyber threats.

Supercharge Your ATO Prevention Strategy, with Memcyco’s Real-time Digital Risk Protection

Fraud tactics are evolving, and so is the approach to combating them. With unique device IDs, device history tracking, and extended identity profiles, advanced device fingerprinting provides the accuracy and real-time action needed to protect against phishing, ATO, and credential-based fraud.

Book a product tour to discover how Memcyco’s advanced device fingerprinting is helping global enterprises save millions annually in ATO investigation and remediation.

Arthur Zavalkovsky

VP of Product at Memcyco