Use Cases2018-08-23T19:22:54+00:00

Learn how Zumigo’s customers use mobile identity and proximity location to prevent fraud and make the consumer online transaction experience smooth and seamless.


What is new account fraud?

New Account Fraud occurs when a fraudster opens a new account using someone else’s personal information. There are numerous types of new account fraud such as utility fraud, loan fraud and credit card fraud.

How does new account fraud happen?

When applying for a new account, the fraudster uses some or all aspects of the real consumer’s identity in order to pass traditional identity verification checks that utilize credit header and public records data.  However, because of recent data breaches, much of this information has been leaked and is easily accessible to career criminals.

How does Zumigo help prevent new account fraud?

Zumigo adds an additional layer authentication that leverages a new data source – authoritative mobile identity and location information directly from the carriers.  While a fraudster may know a consumer’s name, address, Social Security number, and date of birth, they don’t often know their mobile phone number.  Verifying that the mobile phone number “belongs” with the other information can identify discrepancies and highlight potential fraud.

What are one-time passcodes?

A one-time passcode (OTP) is a passcode that is valid for only one login session or transaction. OTPs are used to grant users access to accounts.

How do fraudsters intercept OTPs?

One-time passcodes are often sent to mobile phones.  Some fraudsters attempt to intercept OTPs by providing their own mobile phone number.  Zumigo easily combats this method by verifying the name and address on file with the carrier.  More sophisticated fraudsters attempt to intercept OTPs in a number of ways, including:

  • Porting the phone number away from the real consumer to another carrier or MVNO
  • Performing a SIM swap by calling the carrier and saying the consumer’s  mobile phone was lost, damaged, or stolen
  • Remotely enabling call forwarding for the mobile phone number to receive voice OTPs
  • Adding their own device to the consumer’s iCloud account to receive all text messages

How does Zumigo make OTPs more secure and reliable?

Zumigo not only verifies ownership of the mobile phone number, but also checks for porting, SIM swaps, device changes, and call forwarding to thwart the more sophisticated attempts.  Additionally, Zumigo leverages proximity location to ensure that the phone is the in the hands of the valid user.

What is auto form fill and express mobile checkout?

Consumers are typically required to provide personal information such as name, address, email address, phone number, and other details in order to complete online signup or checkout.  Auto form fill and express mobile checkout saves them time and effort by automatically populating these forms when they appear on a mobile phone.

Why is auto form fill beneficial?

Filling out information personal information over and over again is tedious, but doing it on the small virtual keys of mobile phone makes it even worse.  That’s why it is not surprising that form abandonment on a mobile phone is much higher than a desktop or tablet.  Providing consumers with an option to automatically fill out standard forms increases conversion rates and improves the overall customer experience.

How does Zumigo provide auto form fill?

When a consumer is visiting a website or using an app on their mobile phone, Zumigo can automatically detect the phone number.  The phone number can then be used to request the name, address, and email address from the carrier so that the form can be filled out instantly and seamlessly.  As an added service, Zumigo can even present a list of the consumer’s credit cards to eliminate the hassle of filling out the card number.

What is online purchase fraud?

Online purchases made with a stolen credit card, whether initiated from a computer or phone, cost merchants millions in chargeback expenses.  In fact, with the recent introduction of EMV credit cards, point of sale fraud has dropped dramatically, while online fraud rates have doubled.

How does online purchase fraud happen?

Fraudsters use stolen credit card numbers when conducting online purchases.  With the popularity of same day and next day shipping, the stolen items are typically delivered before the real consumer notices the charges.

How does Zumigo help online purchase fraud?

Using the mobile phone number on the order, Zumigo verifies the name and address provided by the purchaser against the real-time, authoritative information returned by the carrier.  Zumigo also checks the proximity of the mobile phone to the billing address, shipping address, and desktop or tablet (when the transaction is not taking place on the mobile phone).  As an added service, Zumigo can compare the name and address on the credit card to the name and address provided by purchaser and returned the carrier.  With this multi-factor verification, merchants can make more informed decisions about approving online purchases.

What is mobile wallet provisioning fraud?

Mobile wallet provisioning fraud occurs when stolen credit cards are added to a mobile wallet.  This allows fraudsters to circumvent EMV credit card security measures and make fraudulent purchases in-store.

How does mobile wallet provisioning fraud happen?

Mobile wallet provisioning fraud happens when a fraudster sets up a mobile wallet with a fake or stolen identity and then loads the wallet with stolen credit card numbers.  This allows them to make purchases without the need to present the physical plastic.  Fraudsters use a stolen card to complete in-store purchases until it is reported stolen.  Once a card no longer works, they just move on to the next stolen card in the mobile wallet.

How does Zumigo help prevent mobile wallet provisioning fraud?

Zumigo prevents mobile wallet provisioning fraud by verifying that the mobile phone number and personal information entered by the consumer matches to what is on file with the carrier.  For example, if the mobile phone number that is automatically detected does not match to the mobile phone number entered, that would throw up an immediate red flag.  Name and address mismatches would also be a cause for concern.  As an added service, Zumigo can compare the name and address on each credit card to the name and address provided by consumer and returned the carrier.

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