MANGOPAY and Nethone: United to provide Flexible and Powerful Fraud Management for marketplaces
As the digital revolution of the 20th century becomes an evolution in the 21st century, with an increase in digital goods and services on offer, businesses have had to keep up with the trends, expanding their presence online to continue making a profit. However, most businesses - some potential novices taking the leap into online eCommerce and financial services - face numerous types of fraud threats. In fact, online scams have become increasingly pervasive, with businesses and individuals losing billions every year to cybercriminals. Unfortunately, the global fraud threat is rising exponentially. Although KYC systems are widely used to authenticate service users, they still have limitations in curbing the number of online fraud attempts. The company Nethone has developed a proprietary fraud prevention solution based on a Know Your Users™ (KYU) approach, which enables comprehensive, in-depth, multidimensional profiling of all online users. From knowing customers to understanding users’ real motives — it’s an essential tool for the new era of customer-centric services. As Hubert Rachwalski, CEO of Nethone points out, “one of the major problems is associated with false positive alerts that are triggered by internal or external systems that relate to good users. These false alerts are raised because of a lack of accuracy of the decision logic that is being used for profiling.”
To tackle these challenges, Nethone provides a solid foundation for understanding the techniques used to identify risks effectively and accurately. This is achieved by developing a holistic view of every user’s journey and by profiling the device and network characteristics deeper than a legacy-based risk identification system. Nethone’s solution provides a clearer picture of how devices are communicating with servers and payment platforms. “This includes how someone is using their keyboard, holding a mobile device, and what is happening with the gyroscope. These minute pieces of information are put together to build a holistic profile of a user, thus creating an emulated reality of the user,” explains Rachwalski.
In a nutshell, Nethone detects and prevents fraud and reduces unnecessary transaction friction through its KYU profiling technology, which provides platforms with a better understanding of users, both desktop and mobile, in real-time. Their proprietary machine learning (ML) based solution incorporates behavioral biometrics data collection, device and network intelligence to automatically gather granular user analytics and detect malicious and suspicious patterns to eliminate fraud threats. As a result, platforms and marketplaces are able to make informed decisions and secure every point of the user journey. With a wide range of mobile-native attributes analyzed, the solution is especially accurate in identifying fraudulent activity within the growing number of transactions carried out on mobile devices - the target of increasing social engineering attacks through phishing emails, SMS and even voice calls
Nethone has also identified the role of education in enhancing the security of devices and services. According to the company, in any security architecture, people can be a weak point in a chain by not fully understanding the potential dangers that can be encountered online. The company’s solution, beyond education, is to protect online businesses with advanced anti-fraud tech. From card-not-present fraud to chargeback disputes, their solution provides eCommerce merchants with recommendations supported by data to optimize their business decisions. In other words, fraudsters and suspicious users are detected and flagged by the company’s machine learning engine before they can even make a fraud attempt. Nethone’s Profiling technology analyzes 5,000+ attributes about every single end-user session through direct channels. It exhausts the “here and now” information potential by understanding even the smallest level details regarding each user's device, network characteristics, and raw behavior associated with keystrokes, movements of a mouse, taps and swipes of a mobile device, and accelerometer, to name a few. Genuine users can be easily distinguished from potential threat actors - the results are more accurate as more data is received, resulting in fewer false positives.
A Powerful Collaboration
In late 2022, MANGOPAY, a multi-platform payment solution provider and Nethone joined forces to thwart fraud management challenges. This collaboration enhances MANGOPAY’s pay-in, pay-out authentication and seller onboarding capabilities with deeper KYU intelligence. This will protect marketplaces from sophisticated fraud and policy abuse while offering both their buyers and sellers a frictionless experience. MANGOPAY and Nethone’s collaboration allows platforms to improve conversion rates thanks to the optimization of pay-in transaction scoring, improved 3DS2 exemption management and user ID authentication.
Nethone’s solution obtains 5,000+ variables about every transaction attempt, and the only method capable of efficiently analyzing all of that data automatically and effectively in real time is through the use of machine learning models. At Nethone, the team is driven by the urge to constantly push the technological forefront by creating custom procedures for both treating unique data sets, but also deriving an understanding of why a certain recommendation has been made. Nethone understands that although heuristics can be effective in the short term, they generate false positives over the long term. Since fraud changes all the time, it’s necessary to use decision techniques that adapt quickly. “Our solution is the best in the market today in fraud management. We know how to win the market, thanks to the modularity of the solution,” explains Romain Mazeries, CEO of MANGOPAY.
Building a Secure Future
Since its creation in 2016, Nethone has been a pioneer in delivering cutting-edge fraud management solutions to its clientele. With the new collaboration with MANGOPAY, the team is expected to redefine the way traditional fraud management solutions and payment systems work. Today it is Rachwalski and Mazeries unrelenting passion for payment innovation and fraud management that is driving the companies to success.
One of the big dimensions of their growth plan is associated with moving from the unit transaction of a visitor towards really understanding what an account means. This also includes acquiring new customers, and the ability to retain users from the past and do it the best way possible. Delivering a unique experience with added convenience are also part of the plan. “Maintaining the user profile across platforms is one important aspect that we are seeing,” adds Rachwalski.
Mazeries is a strong believer that the payment of tomorrow will be fully based on identity, just like how Apple Pay is growing, which is more about user identity. “We were missing some key pieces and Nethone is filling them. Over the last few months, we’ve welcomed a new team to leverage the market capabilities and deliver products that redefine the way fraud management works. In the long run, we’re planning to build a solution that stands out in the market. We will leverage the capabilities and bring together a stand-alone range of products to the clients,” concludes Mazeries.