Device Identification is a way that e-commerce websites can tell whether a visitor is really a genuine customer or if he is a criminal committing a fraudulent act online. Although credit card companies have devised systems to reduce the possibility of credit card frauds, the criminals keep learning ways to trick the system and they are still able to commit their frauds. Therefore e-commerce merchants must take steps to prevent online theft. Device identification is becoming very popular because it can help prevent this sort of online fraud. A recent strategy is known as adaptive Device Identification.
Adaptive Device Identification is a very thorough way to identify the devices that access your website whether they are new or returning. The adaptive identification devices start with the default assumption that a device is untrustworthy until several attributes are considered. Online criminals have become very sophisticated in being able to cloak their identities on line by creating false relationships. Those who commit fraud online are able to outsmart tagging systems. The adaptive systems are able to adapt to new situations with different identifiers.
It may not be possible to completely stop all cases of online fraud but there are steps you can take to reduce the risk that it will happen to you. You will also be protecting the person who has had his credit card information stolen.
The adaptive identification system can identify a device by using many factors besides the IP address such as reputation, location, time zone, net work routing, and reputation. They can identify a computer that has a negative device reputation and block it from committing more frauds. With an adaptive device identification you will reduce the chance of losing money to online fraud.