Maxmind is the company that offers minFraud, GeoIP2 Precision, and proxy detection web services. MaxMind tests the accuracy of the GeoIP2 and GeoIP Legacy Databases on a constant basis. The databases are 99.8% accurate on a country level, 90% accurate on a state level in the US, and 83% accurate for cities in the US within a 40 kilometer radius.
Maxmind covers all of the IPv4 space, including all the publicly available IP addresses, and covers nearly all of the IPv6 addresses in use.
minFraud is a service launched by Maxmind.
The minFraud service reduces chargebacks by categorizing risky orders to be held for further evaluation. The purpose of using minFraud service is to identify fraud in online e-commerce transactions, surveys, affiliate referrals, and account signups and logins.
The minFraud service determines the possibility of a transaction being fraudulent based on various factors, including whether the online transaction is from a high risk IP address, high risk device, high risk email address, high risk country or an anonymous proxy. One of the significant features of the minFraud service is the minFraud Network, which makes it easy for MaxMind to check the reputations of IP addresses, emails, and many other parameters.
The features of the minFraud service are:
- The fraud riskScore (The likelihood of a transaction being fraudulent)
- Checking the Geographical IP address location
- Detecting High risk IP address and email address
- Proxy detection
- Device tracking
- Bank Identification Number (BIN) to country matching
Example from our daily lives:
MaxMind can be compared with a security expert who will let you know the loop holes and the weak areas in your house that need to be fixed to make it secure from burglary. Whether you take his advice and improve on those areas or not is completely your choice.
Advantages:
- Quick and easy way to verify the payment.
- Detect frauds at an early stage.
- Reduce the number of charge backs.
Disadvantages:
• MaxMind’s minFraud service is effective in detecting stolen card fraud. However MaxMind’s service does not protect against “friendly” chargebacks where the cardholder placed the order but later denies having placed the order and demands a chargeback.
• Some IP addresses may not be in use or may be reserved for private networks. The locations of these addresses are not possible. For example, 127.0.0.1 is the IP address used by most of the computer’s to refer to itself, so its location cannot be ascertained.
• Maxmind does not provide any compensation. While the minFraud service can be used to detect fraudulent transactions, the final decision of accepting or rejecting a given transaction is the responsibility of the user.
Maxmind – Fraud Detection,
