New service designed to thwart repeat offenders of online fraud

[March 12th 2002]

Safewww, Inc., which provides strong two-factor authentication for secure online access, payments and transactions, has launched FraudNet, a system created to protect payment providers, processors and Web merchants from revenue loss caused by repeat fraud.

FraudNet provides lock-out protection from fraudsters' PCs before repeat fraud strikes by logging suspect PCs into a negative online database maintained by any card issuer, Web merchant, payment provider or payment processor.

FraudNet uses a non-intrusive process that registers and uniquely identifies each PC by assigning a "fingerprint" (or "hardware signature") to the computer when a customer enrolls for his or her online account. When illegitimate or fraudulent use is encountered, the suspect PC is flagged in a negative database, blocking future transactions from occurring from the machine. This helps prevent exposure to repeat fraud, while also acting as a deterrent to potential fraudsters, and does not require users to remember any additional passwords, carry a smart card or e-token, or purchase any expensive biometric device. This allows FraudNet to remain unobtrusive to customers, not interfering in the online experience, while being simple for providers to use, implement, and maintain.

"The economic and social costs of online fraud need to be countered with strong authentication and fraud-prevention technology that doesn't inconvenience the consumer," said Kenneth Bob, president and CEO of Safewww, Inc. "Cyber-criminals often steal multiple online identities or credit card numbers, and then use this information to perpetrate fraud from a single computer. FraudNet helps businesses stop these repeat fraudsters, reducing their fraud-related liabilities and bolstering consumer confidence that will lead to higher online enrollment and more online transactions."

A recent report from Meridien Research shows that online payment fraud will increase from $1.6 billion worldwide in 2000 to $15.5 billion in 2005, as the number of online payments continues to increase. Meanwhile, 40% of Internet retailers were victims of online fraud committed several times by the same perpetrator, according to a study commissioned by Experian in August 2000.

Links
Safewww		http://www.safewww.com