• Fraud detection with minFraud

    Recently while working on a client project, we had a requirement to enhance the existing fraud detection techniques already in place on the application. That is when, I came across Maxmind’s minFraud service which is basically a service for online fraud detection along with their already famous GeoIP service.

    Merchants can use the minFraud service to speed up manual order verification, automate order process by using our risk scores, or develop their own customized scoring system with the information that we provide.

    minFraud is a centrally hosted service where all business solutions networked with it connect to it, and the feedback and results received is apparently shared within the network. It uses Maxmind’s GeoIP service to find the user’s location through IP, and hence it helps in a great way to detect fraud. The best part is that it has a simple API where you send the customer’s details (only the non-confidential part) and you receive back a ‘risk score’ which is based out of 100. This risk score depends on various factors how minFraud detects the transaction as fraudulent. You could work up on a strategy so that if the risk score goes up a threshold, the transaction could be put on hold and manually verified.

    Trying to find more about minFraud, I luckily came across this ruby gem called maxmind which was exactly what I needed. Only little problem was that it was written to work with HTTParty. HTTParty while being a good alternative over Net::HTTP, I wanted something simpler and similar to what we already have in the existing project. Thanks to Github, forking and making changes to the existing gem was a breeze. I also added a attributes method so if you need all the attributes of the response object for convenience.

    So, if you are looking to enhance fraud detection on the transactions on your ruby app, checkout minFraud, and have a look at the original gem if you like to Httparty, or if you need a simple solution with NetHttp, have a look at my forked gem.

    To install

    gem install hackedunit-maxmind --source=http://rubygems.org

    Rubygems URL

    Ta.