Page 119 - Cyber Defense eMagazine July 2024

simplest tampering methods. Many companies misunderstand this and end up with a solution that gives
them a false sense of security.

But even device fingerprinting solutions that are purpose-built for fraud prevention have become less
effective over the last few years. The big operating systems have limited the way third-party solution
providers can use device data, making it even more difficult for traditional device fingerprinting solutions
to identify new and returning devices.

Fraudsters have also become increasingly sophisticated. They leverage advanced tools and tactics, like
emulators, a device that enables them to tamper with apps in a synthetic environment, app cloners, and
reset schemes to manipulate or disguise device attributes. For example, fraudsters will perform factory
resets or reinstall apps, effectively creating a "new" device in the eyes of basic fingerprinting solutions.
These “new” devices create “new” accounts that bad actors use to carry out scams at scale without
detection.

At this point, fraud teams are effectively flying blind. They might see 30 new accounts when, in fact, they
have all been created by the same user from the same device. Without reliable device identification
capabilities, apps are significantly disadvantaged in their fight against fraud.

The advantages of a modern approach

Modern device fingerprinting solutions are purpose-built for fraud and risk management. Many of these
approaches are intentionally cookieless, making them much more stable and immune to manipulation
techniques like cookie theft. By focusing on high-quality data signals, not personal information, these
solutions provide a much higher device recognition rate and remain privacy-centric.

Next-generation device fingerprinting solutions, like the one developed by Incognia, take a new approach
to device identification. By adding new layers, like advanced tamper detection and location intelligence,
modern device recognition solutions are more reliable and provide greater accuracy.

Here’s what you should look out for when evaluating device fingerprinting solutions:

1. Tamper detection: Advanced tamper detection mechanisms identify and thwart attempts to mask
device identity, ensuring that even sophisticated fraud attempts are detected.

2. High device recognition rate: Modern device fingerprinting technologies are designed to persist against
common fraud tactics such as factory resets, app reinstalls, and emulators or app cloners. Location
intelligence adds an additional layer of security. By analyzing location patterns, unexpected relationships
between devices and accounts often emerge, revealing risky behavior.

3. Built-in risk analysis: Recognizing a device as new or returning is only half the battle. How do you know
if it is risky or not? Look for solutions that provide you with risk analysis so that you can take action. A
solution that combines hard-coded rules and machine learning models that adapt to new fraud gives you
the most comprehensive and actionable solution.

Cyber Defense eMagazine – July 2024 Edition 119
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