paladin vendor report2017
2017 paladin vendor report
At Paladin Group, we’re deeply immersed in the fraud solution
landscape. It’s our day-to-day work to understand the latest
solution providers, services, and tools. As the number of
solution providers and services grow, merchants’ options
become complex and varied. As experts, we believe it’s our
job to serve as an authority on these products and their
strengths, areas of opportunity, and enhancements. Together,
we can help service providers and merchants do a better,
more well-informed job mitigating the risks that come with
accepting payments in an omni-channel, card-not-present
(CNP) world. With that said, the 2017 Paladin Vendor Report
is purely informational. Paladin has not written any opinions,
given any reviews, or is displaying any thumbs-up (or down)
about the information contained in the report.
Paladin focused on several key areas
during the discovery process. (Not all
are applicable to every vendor, but
for consistency, we examined each
of the following wherever relevant.)
PRODUCT - The vendor’s
current functionality.
SERVICES - Available offerings
to help merchants during integration
and throughout their client lifecycle,
including reporting.
BUSINESS DEVELOPMENT - Current
partnerships and channels for direct
and indirect customers.
MARKETING - The verticals vendors
are focusing on and messaging
SALES - A breakdown of market
segments.
TECHNOLOGY - How the product
works from a technical perspective.
Introduction
2017 paladin vendor report
Third-party fraud prevention platforms provide protection and
flexibility to not only prevent fraudulent transactions but also
increase acceptance of legitimate orders. They help scale
fraud teams by managing, or helping to eliminate, the manual
requirement associated with transactional order review. Often,
the foundation of the prevention platform is a customizable
rules engine designed and maintained to identify historically
high-risk combinations of order attributes and decision upon
them on behalf of the merchant. There’s a growing trend
within the industry to increasingly rely on machine-learning
to train models, thereby reducing the manual management
required. Another popular trend is the “chargeback guarantee,”
which can absolve merchants of much or all of their fraud-
coded chargeback receipts.
Fraud Platforms & Decision Engines
2017 paladin vendor report
Participating Vendor: Fraud Platforms & Decision Engines:
MaxMind
Vendor Overview
MaxMind is a privately held Waltham, MA-based company. Founded in 2002, MaxMind
provides both IP geolocation and IP intelligence, as well as online fraud intelligence.
MaxMind offers minFraud, which is their fraud intelligence product. MaxMind has over
7,000 merchants utilizing their minFraud service throughout their online and partner
networks. Along with providing fraud prevention and geolocation solutions to a global
marketplace, they also help clients reduce chargebacks, false positives, review rates,
and loss rates. Their GeoIP-based products boast a customer base of over 5,000
companies. A client can work with them on pricing for a flat fee, or per transaction.
Solutions & Functionality
The MaxMind minFraud Network screens over 175 million minFraud queries monthly
from over 7,000 merchants, equating to over 2 billion transactions over the course
of a 12-month look-back period for data modeling and scoring. minFraud combines
machine-learning algorithms with heuristics (practical methodology) and manual
review to create MaxMind’s riskScore and IP risk score. These scores are based on
reputational data points such as IP, email, billing and shipping address, and geolocation
data. The riskScore and IP risk score are utilized both by merchant clients as well as
vendor partners. Within the minFraud brand, there are three different services:
• minFraud Score: Provides a riskScore on the transaction, as mentioned
above, as well as an IP risk score (this service has also replaced their
Proxy Detection service).
At a Glance:
3rd Party API Capabilities Payment GatewayCapabilities
OperationalSupport
ATO DetectionCapabilities
Account/ClientManagement
Device FingerprintCapabilities
Historical SandboxTesting
Non-ProductionReal Time Rules Testing
ProfessionalGuidance/Services
User BehaviorCapabilities
Guaranteed ChargebackLiability
Pre-AuthorizationFunctionality
Fraud Engine/Platform Functionality
Machine Learning
3rd Party API Capabilities Payment GatewayCapabilities
OperationalSupport
ATO DetectionCapabilities
Account/ClientManagement
Device FingerprintCapabilities
Historical SandboxTesting
Non-ProductionReal Time Rules Testing
ProfessionalGuidance/Services
User BehaviorCapabilities
Guaranteed ChargebackLiability
Pre-AuthorizationFunctionality
Fraud Engine/Platform Functionality
Machine Learning
3rd Party API Capabilities Payment GatewayCapabilities
OperationalSupport
ATO DetectionCapabilities
Account/ClientManagement
Device FingerprintCapabilities
Historical SandboxTesting
Non-ProductionReal Time Rules Testing
ProfessionalGuidance/Services
User BehaviorCapabilities
Guaranteed ChargebackLiability
Pre-AuthorizationFunctionality
Fraud Engine/Platform Functionality
Machine Learning
3rd Party API Capabilities Payment GatewayCapabilities
OperationalSupport
ATO DetectionCapabilities
Account/ClientManagement
Device FingerprintCapabilities
Historical SandboxTesting
Non-ProductionReal Time Rules Testing
ProfessionalGuidance/Services
User BehaviorCapabilities
Guaranteed ChargebackLiability
Pre-AuthorizationFunctionality
Fraud Engine/Platform Functionality
Machine Learning
2017 paladin vendor report
• minFraud Insights: Provides the above plus additional data for
review and MaxMind’s GeoIP2 Precision Insights data points.
• minFraud Factors: Provides the same data as minFraud
Insights, adding more data to the process and incremental
sub-score outputs.
minFraud also has an option to support device tracking via
MaxMind’s minFraud Device Tracking Add-On. The Device
Tracking Add-On, which is JavaScript-based, identifies devices as
they move across the internet. If someone (most likely a fraudster)
changes IP or proxies while browsing a merchant’s website or
between visits to a merchant’s website, the IP risk score and the
risk score associated with the transaction may increase.
minFraud Interactive is the user interface MaxMind offers
to their clients. Within the user interface, a client can create
custom rules based on coupled parameters to accept, reject,
or send transactions to manual review. minFraud Interactive
lets fraud analysts glance at specific data points of concern,
review associated transactions for quick and accurate analysis,
search historical transactions to fine-tune the custom rules, and
revisit decisioned transactions for chargeback reporting and
rule creation. The Transaction Details Page within minFraud
Interactive displays the disposition status as well as both
the riskScore and the IP risk score, along with all the other
parameters provided by the service, some of which have a visual
Participating Vendor: Fraud Platforms & Decision Engines:
MaxMind
2017 paladin vendor report
indication of highlighted risk assessment (see diagram below). This screen may also be
used by the user to perform manual review and set a disposition to accept or reject.
Additional minFraud Interactive features include:
• Custom rules which enable automated acceptance or rejection of transactions based
on certain criteria such as IP address, email address, etc. This can also be used to
provide the equivalent to negative file functionality.
• Custom inputs that enable the creation of custom rules for automating decisioning
and improved manual review related to merchant specific fraud.
• Chargeback reporting based on tagged transactions in minFraud Interactive,
which then feeds this data directly into the machine-learning algorithms and
adjusts the riskScore accordingly.
Geolocation Intelligence
• GeoIP2 Precision Services (real-time via application program interface (API)):
Country service, City service, Insights service.
• GeoIP2 Databases (downloadable): Country, City, ISP, Domain, connection type,
Anonymous IP, Enterprise.
• GeoLite2 Databases (downloadable): Country, City, Autonomous System
Number (ASN).
Within each of these three offerings, there are more detailed data points available,
such as continent, city, ISP org, domain, accuracy radius, etc.
To the right is a use case for the GeoIP2 Anonymous IP Database, which contains
information about IP address networks which are used as various forms of anonymizers.
The probable anonymizer type is also included..
Participating Vendor: Fraud Platforms & Decision Engines:
MaxMind
CUSTOMER TESTIMONIAL
“We’ve been working with MaxMind
for a few years. We use their GeoIP
Database and Proxy Detection
application programming interface.
The integration was relatively
straightforward. We have no complaints
at all, as the files are delivered on time.
In the US, quality of data is good, but the
international data granularity is not the
same—but this isn’t surprising. They are
certainly a leader in the IP intelligence
space vs. their competition. They are
very responsive from a support needs
perspective, even though support is not
usually needed from our perspective.
MaxMind’s Proxy Detection product is
more predictive than the competition.”
2017 paladin vendor report
The GeoIP2 Precision City service provides MaxMind’s most accurate information about
the location of an IP address to the zip or postal code level and identifies the associated
ISP or organization. The GeoIP2 Anonymous IP Database identifies anonymizing virtual
private network (VPN) Services, Tor Exit Nodes, Hosting Providers/Data Centers, and
Public Proxies. Most of their databases are updated weekly, with the exception of the
Anonymous IP database, which is updated daily. Each database update replaces the prior
downloaded database.
CUSTOMER TESTIMONIAL
“We’ve been working with MaxMind
since 2011. We use the minFraud and
GeoIP-based product, and we have it
incorporated into our in-house fraud
platform. We like it, as there is a cost
benefit perspective—we get a lot of
value for both minFraud and GeoIP. We
have had no downtime-related issues
for several years. We appreciate the
MaxMind team and feel there is more of
a personal relationship, and not a sales
targeted relationship. They take the time
to know you and your business. Their
response time via a direct email has
been excellent; it’s not like sending a
ticket and being treated like a number.”
Paladin would like to thank all of the participating vendors for their time and
availability during the discovery and post-writing processes. We also would like to
remind all readers of this report that they can email us at [email protected] to
let us know which vendors they would like to see participate in the refresh of this
report which will be published in early 2018. Again, anyone who downloads the
report will automatically be emailed the refreshed version upon publication.
MaxMind
14 Spring Street, 3rd Floor
Waltham, MA 02451 USA
+1-617-500-4493
www.maxmind.com