IBM Security today announced a new capability from IBM Trusteer that helps banks identify fraudulent accounts before they are opened. The technology also protects consumers even if they are not a customer of the bank being targeted with the fake account
Identity fraud continues to be a global challenge, and an expensive one for banks and financial institutions. In the past six years, $112 billion has been stolen through fraudulent means, equating to $35,600 lost every minute. These trends are likely to continue when coupled with the historic breaches of personally identifiable information like addresses, Social Security Numbers and birthdates.
IBM Security helps banks and other financial service providers protect consumers by making it easier to identify fraudulent accounts with its IBM Trusteer New Account Fraud detection offering. This new technology, which is part of IBM’s Trusteer Pinpoint Detect portfolio, helps financial institutions leverage machine learning to bring together the device and network information used to open a new account with analytics to help detect fraud.
IBM Trusteer New Account Fraud helps banks separate the fraudulent users from the legitimate ones, by not only looking at the positive information they provide, but comparing that with the negative indicators surrounding the transaction. The tool also looks at critical stages of the account creation process and leverages behavioral analytics to help verify identity and potential fraud patterns.
For example, details such as the IP address of where the account is being created, geolocation/time zone, and the health of the device that is being used can all be helpful in detecting fraudulent activity. If these details differ from the usual appropriate user, then it’s a sign that a new account may be fraudulent.
The New Account Fraud solution will be an add-on to IBM Security Trusteer Pinpoint Detect, which protects hundreds of global financial institutions and banking websites against account takeover and fraudulent transactions and helps detect end user machines infected with high risk malware.