Deduce: An Armour to Account Takeover

Ari Jacoby


“Our competitors still think and deploy like traditional software vendors, whereas we created the Deduce Identity Network from the lens of real-time data sharing”

Identity and authentication fraud controls have traditionally and predominantly relied on static data to prevent ATO, but most static data has already been breached due to massive historical attacks, and the availability of such data on the dark web continues to flourish. One reason for this is often-used weak and non-unique passwords. Many of the traditional ways to safeguard a user’s identity and authenticate their login experience have been compromised by previous large-scale identity breaches. At this juncture, Deduce leads the world in augmenting existing risk decision engines to make smarter, more informed decisions on whether an identity is potentially fraudulent. Identity insights intelligence are leveraged by existing CIAM or IDV platforms. For example; identity intelligence can help inform MFA challenge decisions to increase fraud prevention or deliver trust signals to reduce unnecessary false positive MFA challenges to legitimate users. “Our competitors still think and deploy like traditional software vendors, whereas we created the Deduce Identity Network from the lens of real-time data sharing,” begins Ari Jacoby, CEO, Deduce.

The Deduce Identity Network is a consortium of over 150,000+ participating websites and apps with the objective of sourcing the maximum amount of real-time user activity intelligence for a profile as they log in, create accounts, and transact online. The intent is to rival the visibility and scale only previously seen at internet giants and to commercialize an offering for risk teams. Built on top of the Deduce Identity Network, Deduce offers two solutions to combat Account Takeover (ATO) and account creation fraud. This includes the Identity Insights, a Risk and Trust signal data to empower risk teams with a dev-ops friendly approach to managing identity/authentication risk. The Deduce Identity Insights solution is intended to be used as a high-fidelity approach to identifying suspicious activity while decreasing unnecessary friction. The second feature is Customer Alerts that send an alert, asynchronously, on behalf of the Deduce customer – to their end-users on suspicious logins to enable a proactive stance against ATO. Customers are prompted to confirm or deny the activity. A negative selection will cause all active sessions to be terminated and proactively enable a user to reset their credentials.

Typical fraud tools focus on identifying bots and automated traffic but know little about the identity of users. By contrast, Deduce Identity Insights is fueled by the powerful Deduce Identity Network to act as a cybersecurity radar for validating good users and detecting fraudulent activity. The Deduce Insights data delivers an entirely new source of identity data and insights to reduce friction, improve conversions, and combat fraud. Deduce’s system is designed to correlate event-level telemetry data, augmentative data sources, and first-party feedback data, to create hundreds of data features on a data-driven platform. “We derive these insights by deploying code directly to user touchpoints across the web while aggregating information in a secure, encrypted, and privacy-compliant environment,” explains Jacoby.

Since opening its doors in 2019, Deduce has been a pioneer in user validation and fraud management solutions. Over the years, the company has made a huge list of clientele including Namely, OpenTable, Next Glass (Untappd), and Unisys. Today, with over 500M unique identity profiles that collectively generate more than 1.4B daily activities, Deduce sees the majority of the U.S. population transact in real-time, several times a week — based on four principal threat vectors: device, network, geography, and activity. Using a fully horizontally and vertically scalable deployment model, Deduce can process Billions of transactions daily while maintaining blazing-fast response times across its cloud infrastructure.

In the long run, the company’s defining goal is to continue its mission to democratize identity data through partnerships with other cyber risk and fraud companies to help them make smart, real-time decisions for its mutual customers. “By the time you finish reading this, over 70,000 consumer identities will have been stolen and used by bad actors for some of the most nefarious crimes such as people trafficking, drug dealing, and arms smuggling. We must collectively put a stop to this before such activities completely undermine our social fabric. We believe we can and should unite to make Identity Intelligence a shared data currency. We want to stamp out account takeover fraud forever and Deduce enables every company to contribute to our collective protection,” concludes Jacoby.

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