The eCommerce industry continues to improve and get bigger. New tools that help merchants deal with fraudulent activities and thus make more profit appear every day. One of such excellent technological advances is device fingerprinting. While it is often viewed as a powerful market research tool, it is also a solution to prevent fraud.
What Exactly Is Device Fingerprinting?
Device fingerprinting technology gives you an opportunity to block devices that have been linked to fraudulent activities.
How the system works
The way the system works is that it is designed to collect information about devices that are used to purchase items online. This technology can gather details, such as software installed on a certain device and its hardware. It doesn’t rely on separate characteristics, which won’t be reliable on their own, but rather focuses on the combination of many different ones. Because every device is unique, it leaves its own digital fingerprint.
How the data is stored
The data gathered in this way is stored in the system so that it can recognize when a purchase is made using this device again. If it is associated with fraud, it is possible to deny such activities and thus prevent any unwanted situations from happening.
Indicators used for digital fingerprinting
Every time an individual uses a site, they leave different data connected to their activity. The number of indicators that can be used for analysis is huge. They may include the OS and browser version, CPU architecture, screen resolution, installed fonts, plugins, IP address, timestamp, user-agent, and more.
Advanced digital fingerprinting allows identifying a specific device
Obviously, one or two indicators cannot pinpoint a specific device. However, advanced device fingerprinting systems use an entire combination of indicators and thus provide reliable results. In some ways, device fingerprinting can be compared to browser cookies. However, a significant difference is that the information cannot be deleted by users and is a lot more extensive.
Effective Fraud Prevention Opportunity
These days, it is not an effective strategy to block suspicious users based on their IP addresses. They may be using the IP address of their workplace. Or, they can simply use VPN at any moment and thus change their IP address. This makes blocking users engaged in fraudulent activities more complicated.
An important step to prevent fraud
For this reason, device fingerprinting is an important step in the right direction. It offers more ways to identify a specific user and automatically prevent them from making purchases. You can use it to minimize the risk of click fraud and other similar activities.
Adding device fingerprinting to your website
It is possible to access this type of service in the form of extensions for your site. By implementing this system in your business, you can have an effective tool for fraud management. At the same time, you should have realistic expectations.
Multiple ways to prevent fraud effectively
Device fingerprinting should be viewed as a way to minimize risks, but you should remember that scammers can use new devices. It is a good idea to use an entire range of different instruments that are aimed at preventing both malicious and friendly fraud.
Use Modern Technology to Improve Your Business
Device fingerprinting is a fairly new advancement in the world of eCommerce but it’s obvious that it has a future. With fraudulent activity being a constant threat to businesses, it’s important to use a combination of methods to prevent it. Chargebacks and other problems associated with fraud should be addressed immediately, as they can take a serious toll on your business. Device fingerprinting offers an effective way to minimize the risks.
Have you tried implementing device fingerprinting on your site? Are there other methods you use to prevent fraud? Share your experience in the comments and send this article to those who might be interested.
