device fingerprinting for fraud detection leverages the unique characteristics of a device, such as screen resolution and app usage, to identify and track individual devices over time. It is used to enhance fraud detection by providing a more comprehensive view of devices in order to detect suspicious activity and prevent fraudulent activity such as account takeovers (ATOs).
Fingerprinting uses multiple data points, including browser API usage, mouse movements, click patterns, typing dynamics, and hardware and software configurations to create a digital profile of each device. The resulting fingerprint is then compared against a database of known fingerprints in order to verify and authenticate the device.
Top Bot Traffic Identification Tools for Secure Web Applications
Fraudsters often switch between devices or manipulate their user-agent information to mimic legitimate users, complicating accurate tracking and increasing the risk of fraud slipping through. Users can also adjust their device settings to limit the information they disclose, making it harder for websites and online services to collect a reliable fingerprint.
Despite these challenges, fingerprinting is still a powerful tool that can help merchants stop friendly fraud, where a legitimate customer files an illegitimate post-transaction dispute with the merchant. Using a combination of fraud prevention signals, including device fingerprinting, to tackle friendly fraud and other payment-related disputes improves merchants’ chances of recouping their losses and maintaining their reputation.
Additionally, the granular nature of the information collected allows device fingerprinting to comply with data protection regulations such as GDPR and CCPA, while simultaneously enhancing fraud detection. For these reasons, fingerprinting is a key ingredient in FOCAL’s advanced fraud management solution that delivers comprehensive and streamlined security for online businesses.
