Data and analytics startup XOR Data Exchange announced it will provide a free resource to online retailers to help businesses identify and mitigate the risk of identity theft.
The company’s Compromised Identity Exchange Basic platform will enable eCommerce retailers to access valuable information concerning the risk of identity theft associated with a customer based on the number and types of data breaches the individual’s personal data has been compromised by. The platform also distinguishes if those particular breaches produced fraud and if the individual’s stolen personal information is available for sale on the dark web.
Participating online retailers will also have access to recent data breach activity and the format of any compromised account passwords via the platform. Harnessing this type of information can empower retailers to implement authentication measures when needed to confirm that a customer is who they say they are.
“Our goal when we set out to develop the Compromised Identity Exchange was to remove the burden of fraud prevention from consumers and to build a more efficient, effective method for service providers to prevent fraud,” Mike Cook, founder and CEO of XOR Data Exchange, stated. “By taking advantage of this free insight into data breaches, online retailers will be able to easily prevent attempts at identity theft and better protect themselves and consumers from massive financial losses.”
Last year, Cook joined Karen Webster and David Evans, economist, MPD Founder and co-author of the No. 1 new release on Amazon — “Matchmakers: The New Economics of Multisided Platforms,” to discuss how the permission-based data platform work as part of PYMNTS’ video/audio series The Matchmaker Is In.
The exchanges supported by XOR Data Exchange are not your typical shared database platforms. First off, they are exchanges built because industry players have a problem that data – the right data – can solve. And even though data owners are able to contribute their data to a common exchange, their data isn’t shared with anyone they don’t want to have it shared it, nor is it ever used in any way other than how the data exchange parties have stipulated it to be used.
“We’ve built a lot of privacy-enhancing technologies that allow us to let companies share information without actually flying the data around,” Cook explained.
The company’s Compromised Identity Exchange was initially launched at the request of a large bank that had customer records compromised.
The two sides of the platform – at-risk entities and compromised organizations – are stakeholders that XOR, the matchmaker, brings together and who derive value from being part of its data exchange. The compromised entities share the breached customer information. The at-risk companies – those who are the likely targets of those compromised identities — benefit in different ways.
The breached organization is able to assure 100 percent of its consumers whose identities were comprised that they are being monitored to prevent fraudulent activities.
The at-risk organizations get access to lists of “scored” identities to determine who is at the highest risk of being defrauded. FIs can then be proactive and not reactive in dealing with the likelihood of fraud.