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Miami data center to protect Latin American e-commerce from fraud

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iovation, an Oregon company that helps online sellers protect themselves against fraud, has launched a data center in Miami, at what it says is a nexus of Latin American communication networks, to serve companies in Latin America, the company announced Wednesday.

The data center’s purpose is to optimize load times for customers in Latin America, where the e-commerce market is booming, with analysts predicting 20% annual growth over the next several years, iovation said.

The company’s VP of technology Scott Waddell said countries in the region like Argentina, Brazil, Columbia and Venezuela were enjoying rapid growth in ecommerce and other web services.

“That online growth brings increasing exposure to web fraud and abuse for Latin American businesses and their end users,” he said. “By locating this data center at the nexus of Latin American communication networks, iovation has strategically positioned itself to combat this fraud.”

One of the highest growth rates is seen in Brazil, especially during the Summer Olympics in Rio De Janeiro in 2016. iovation cited Forrester in saying the country’s ecommerce industry would be growing 18% year over year, expecting to reach US$22bn by 2016.

Zia Daniell Wigder, of Forrester, said, “With more than 40% of the online users in the region and a steadily growing economy, it's not surprising that Brazil's e-commerce market will outpace all others by a wide margin.”

Iovation’s service is called ReputationManager 360. It exposes reputation and relationships between devices like mobile phones, tablets and computers so customers can better avoid fraudulent transactions.

The company keeps a database of these devices and relationships, which today is used by more than 2,000 fraud managers around the world.

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