Detecting Fraud and Mitigating Risk – in Real-Time
Identity theft and fraud are rampant today, costing firms tens of millions of dollars.
- Companies are losing customer data.
- Computer systems are being compromised by fraudsters.
- Brokerage account identities are being stolen.
- Pump-and-dump schemes are duping unsuspecting investors.
Identity theft in all forms caused an estimated $56.6 billion in losses in 2005, according to Javelin.1 To slow down this crisis, financial services organizations are deploying sophisticated solutions to protect customers and mitigate the damage done to their reputations caused by fraudsters.
International fraud rates also remain high, limiting the global reach of many Web businesses. Note these statistics:
- Nearly 13 percent of all orders originating from overseas are rejected by US merchants.2
- Of the 29 million UK adults who use the Internet, 1.7 million suffered some kind of online shopping fraud and 1.2 million were a victim of banking or credit card fraud on the Internet.3
To stop this trend, it is important to identify potential fraudulent behavior before it actually occurs. This provides the opportunity to trigger protective action, such as re-authenticating the user or halting fraudulent activity, before any real harm is done. Many firms still rely on capturing server logs to understand what is occurring online with their business, but the latency and lack of user details coming from logs files is insufficient against today’s fraudsters.
Real-time Detection Leads to Real-time Prevention
To halt fraud before it occurs, businesses require insight into user activity in real-time. Anomaly/fraud detection solutions can identify potential fraudulent behavior, but they must have in-session, real-time information about user profiles and usage trends to mitigate risk and losses. By monitoring and capturing user transactions and instantaneously feeding them to enterprise fraud solutions, companies can protect their users’ information by taking action and thwarting fraud – before it happens.
Radware’s Inflight platform captures session and login information, enabling activity to be attributed to actual users — not just IP addresses. It is an extremely scalable, high-performance enterprise solution that integrates real-time online user transactional information into existing enterprise fraud management systems or dedicated online fraud solutions.
Inflight feeds leading fraud solutions through custom data pumps or industry-standard protocols. All configurations on what data to feed and in what formats are performed within Inflight to ensure a quick deployment for any fraud requirements and fast time-to-market to begin deterring fraud immediately. By providing real-time intelligence into user behavior using real-time data and events from Inflight, fraud solutions can thwart
- Online fraud
- Anti-money laundering (AML)
- Enterprise fraud
- Insider fraud
With this information, fraud solutions can take action before it is too late.
Inflight is deployed as a pervasive network-based appliance, maintaining network performance and eliminating the application development requirements of other solutions. The result is a quick-to-deploy, transparent solution that enhances the bottom line, provides a fast return on investment (ROI), and builds customer trust.
1 Javelin Research
2 CyberSource Corp., January 2006
3 A report from the Get Safe Online campaign, January 2007