Overview of LexisNexis® ThreatMetrix
LexisNexis® ThreatMetrix is a comprehensive enterprise solution designed to enhance digital identity intelligence, authentication, and fraud prevention. Acquired by LexisNexis Risk Solutions in 2018 and integrated into the LexisNexis ecosystem in 2019, ThreatMetrix combines advanced machine learning, behavioral analytics, and global verification capabilities to provide a robust fraud defense system.
Key Features and Functionality
Digital Identity Intelligence
ThreatMetrix leverages the LexisNexis Digital Identity Network, one of the world’s largest crowdsourced global digital networks, to create a 360-degree view of customers. This network processes over 40 billion transactions annually and recognizes over 1.7 billion digital identities across 195 countries. It merges offline and online data in near real-time to establish true digital identities, detecting synthetic and stolen identities, as well as unusual behaviors such as location anomalies and new email or shipping addresses.
Advanced Analytics and Machine Learning
ThreatMetrix employs both supervised and unsupervised machine learning models to analyze thousands of risk signals, providing automated and precise risk scores. This AI-powered approach accelerates risk-based decisions and enhances fraud detection at every stage of the customer journey. The system uses clear-box machine learning for richer context and smart linking to identify associations between varied data points, thereby determining risk more accurately.
Behavioral Biometrics
Introduced in 2020, the Behavioral Biometrics feature layers an additional defense mechanism within the ThreatMetrix solution. It analyzes how users interact with their devices, combining this behavioral data with existing digital identity intelligence to better profile high-risk behaviors associated with fraudsters, automated bots, and other malicious activities. This helps in reliably identifying deviations from established behavioral patterns.
Multi-Factor Authentication and Risk-Based Authentication
ThreatMetrix integrates risk-based authentication with Strong Customer Authentication strategies to minimize friction while enhancing security. The system can operate across multiple touchpoints in the customer journey, including new account origination, account logins, and payment fraud management. It uses advanced device identifiers, such as cookie-based and algorithmic-based approaches, to detect returning users even if they attempt to bypass device fingerprinting.
Dynamic Decision Platform
The ThreatMetrix Dynamic Decision Platform (DDP) provides enhanced authentication, identity verification, and fraud decisioning. It integrates digital identity intelligence with behavioral analytics and machine learning capabilities, incorporating third-party data sources for exception handling. The platform includes a case management tool to segment and prioritize workflow, facilitating thorough investigations and reviews of transactions that require further scrutiny.
Scalability and Reliability
ThreatMetrix is designed with horizontal scalability, utilizing big data components in a live-live configuration across data centers. The system processes over 96 billion events annually and has failover mechanisms with N 2 level redundancy, ensuring high availability and reliability even during peak periods.
Customization and Integration
Customers have full control over which fields are sent via API calls to ThreatMetrix, including provisions for custom fields. The system communicates via RESTful APIs, allowing for seamless integration into existing systems. A consulting period is included to ensure the suitability of fields to be shared, and an API sandbox or test environment is available for testing and customization.
Benefits
- Improved Transaction Security: Enhances security by detecting and preventing fraud in near real-time.
- Minimized Friction: Reduces false positives and minimizes friction during transactions.
- Personalization: Refines personalization by recognizing good, returning customers.
- Regulatory Compliance: Helps solve regulatory and compliance challenges such as sanctions screening, PSD2, and CCPA.
- Scalability: Supports high volumes of transactions with robust scalability and reliability features.
In summary, LexisNexis ThreatMetrix is a powerful tool for businesses seeking to enhance their fraud prevention, identity verification, and authentication processes, all while maintaining a seamless and personalized user experience.