The Benefits of Device Fingerprinting Authentication for Ride-Hailing Companies

 Digital ride-hailing apps surpassed 1.7 billion active users in 2023, and by 2029, that number is projected to reach 2.3 billion (Source: Statista). This growing industry is now the center of attention for fraudsters eager to exploit its loopholes. In previous years, the industry has experienced typical fraud such as account takeovers, fake ride requests, and payment fraud. 

As companies adopt stronger authentication, device fingerprinting for authentication has become a key tool in preventing fraud on ride hailing platforms by providing a seamless yet powerful solution.

How Device Fingerprinting Enhances Authentication

Explaining the Step-by-Step Process:

(1) Device Identification

The first step is to uniquely identify every physical device on your platform.

This step compiles each user's unique device characteristics, including device attributes such as browser type, operating system, IP address, time zone, etc. 

(2) Assigning Fingerprinting for Authentication

The system assigns a fingerprint, a unique identifier, to each device during the first login. This identifier is assigned based on the unique device characteristics compiled in the previous step. This identifier is generally a combination of alphanumeric string 

For example:

On subsequent logins, it checks if the device matches the stored fingerprint. If not, it flags it as suspicious.

(3) Behavior and Pattern Analysis:

Now comes the monitoring part. The system considers the pre-collected details as a primary reference point and checks for any deviation from the norm. 

Such deviations can include logging from a new location, change in IP address, etc. 

Once such behavioral deviations are identified, the system flags them for review.

It further checks for the availability of other red flags popular in the ride-hailing industry such as GPS spoofers, emulators, app cloners, auto-clickers, etc to confirm the user being fraud. 

(4) Contextual Verification:

On confirmation of suspicious activity, the system adds an additional verification step, such as multi-factor authentication or a CAPTCHA.

This extra step ensures that even if a fraudster bypasses device fingerprinting, they still need to pass further checks. 

Note: If no behavioural deviations are detected in Step 3, the process will bypass Step 4 and advance directly to Step 5.

(5) Access Decision:

The final step decides whether to grant access or not. 

• If the device has passed all the above checks with consistent behaviors and no signs of foul play, the device will be granted access.

• If the device is flagged as fraudulent, the access will be temporarily blocked and will go for additional verification before granting access. 

The above 5 steps wrap up how device fingerprinting works in user authentication. 

Example of Device Fingerprinting Authentication in Action

Let’s walk through an example of how device fingerprinting works in authentication:

• Genuine User:
  Sarah logs into the ride-hailing platform for the first time on her smartphone, and the system collects her device’s fingerprint. The system stores this fingerprint associated with her account. The next time Sarah logs in from the same phone, the system recognizes the device and grants her access without additional checks.

• Fraudulent Activity:
  A fraudster tries to log into Sarah’s account from a new device, pretending to be her. The system notices that the device’s fingerprint doesn’t match Sarah’s previously recorded fingerprint. It flags this as suspicious. The system then checks other behaviors, like the login location, which is different from where Sarah usually accesses the platform. The fraudster is asked to complete additional verification steps (such as phone number verification or MFA).

• If the fraudster fails to pass these steps, they are denied access to Sarah’s account.

The Benefits of Device Fingerprinting for Ride-Hailing Companies

Including device fingerprinting for authentication in ride hailing directly reduces fraud and fraudsters on the platform.

Limit the Creation of Fake Accounts and Multi-Accounts: Device fingerprinting effectively identifies the number of accounts associated with the same device. It can segregate good devices from risky ones and monitor the fake account creation process.

Minimize Promo Abuse and Incentive Abuse: Device fingerprinting combined with device intelligence exposes users who are tampering with their app or using fraudulent apps to change the device configuration and obtain financial incentives illicitly. 

End Fake Rides and Location Spoofing: Using device fingerprinting, businesses can put an end to location spoofing by knowing when drivers or passengers are faking their locations using VPNs and GPS spoofers.

Improve User Trust and Experience: With no fraud on the platform, the retention rate is positively enhanced as users feel more secure and satisfied with the platform. This further opens up possibilities for word-of-mouth publicity and overall brand development. 

Reduced Cost of Dealing with Fraud: Device fingerprinting authentication stops fraud at its root. This eliminates the additional costs of managing fraud's aftermath, allowing businesses to allocate resources more efficiently.

Real-World Applications of Device Fingerprinting in Ride-Hailing

Case Studies of Companies Using Device Fingerprinting

InDrive, the world’s fastest growing online ride-hailing service with operations in 700+ cities across 47 countries is leveraging device fingerprinting solutions from SHIELD to boost trust and fairness on their platform. 

Using device fingerprinting and device intelligence, the ride hailing unicorn is able to achieve: 

• Best-in-class performance of over 99.77% genuine users

• Stopped incentive abuse and fraud syndicates

• Boosted trust and fairness across 700+ cities and 47 growth markets

Read the full case study here: https://shield.com/case-studies/indrive

Conglomerates like Uber, Lyft and other similar companies are also utilizing device fingerprinting technology to fight fraud on their platform. 

Save Millions in Fraud Losses – Get a Demo to See How

The increase in fraud in the ride hailing industry is concerning. It is a must for businesses to know exactly which tools and techniques are being used to commit fraud and which  solution can help detect and prevent fraud.

Learn how our solution build trust, preserve brand reputation, and keep your business at the forefront of the ride-hailing race - [Book a Demo]