Outsmarting Fraudsters With Cognitive Fraud Detection

October 27, 2016
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3 min read

Can your financial institution’s fraud detection system learn, reason and adapt to new and emerging cyberthreats? Can it identify fraudulent behavior within your account simply by analyzing interactions and patterns? In this day and age, people can access their bank accounts anywhere, anytime. We need strong, agile and efficient fraud detection systems to keep financial institutions and their customers safe.

Mobile functionality and safety are among customers’ top concerns when it comes to online banking — so IBM Security Trusteer is releasing new cognitive fraud detection and behavioral biometric functionality that accomplishes just that. This enhanced functionality adds even more strength to an already robust security platform without impacting user experience.

Convenience Versus Security

Customers demand a seamless experience when interacting with online banking systems. This type of functionality may make customers happier but, unfortunately, it can also open them up to multiple threats.

Cybercriminals are dynamic in their attack methods. They continuously adapt, evolve and create new malware strains to target banks and their customers. According to IBM X-Force Research, financial services is one of the top three targeted industries for cybercrime. Financial institutions must balance adding security enhancements to help combat this evolving threat landscape with minimizing customer impact through simpler authentication methods.

IBM is one of the leaders in the cognitive revolution. The combination of cognitive technology with fraud prevention and detection solutions has the potential to revolutionize the security industry. Utilizing cognitive detection and behavioral biometrics to enhance security benefits financial institutions and the customers they serve. It also allows banks to provide their customers with seamless security protection while working behind the scenes to detect pattern anomalies.

Introducing Cognitive Fraud Detection

Most banks today use passwords as the primary means of authentication. But passwords and security questions are often compromised through malware or routine social engineering tactics. Additionally, the nearly universal use of passwords has engendered password fatigue among consumers. This often leads them to reuse the same password for many accounts, leaving themselves vulnerable if one of the accounts is breached. These and many other factors highlight a clear need to improve and implement seamless, risk-based, unobtrusive user authentication.

IBM Trusteer Pinpoint Detect now incorporates behavioral biometrics, patented analytics and machine learning for real-time cognitive fraud detection. This new behavioral biometric capability leverages machine learning to study how users interact with banking websites. It can understand subtle mouse movements and clicks in context and meaning, while creating models with each interaction so it gets smarter and more accurate over time.

Built in conjunction with IBM Research labs, behavioral biometrics can analyze these models and help financial institutions detect when unauthorized users try to log in to a bank account. It is transparent to end users, so it preserves the online customer experience while making it harder for fraudsters to circumvent security features. Overwhelmed investigation teams can lower the rate of false positive alerts by accurately identifying suspected fraudulent behavior.

Adaptive Intelligence Service

Trusteer identifies and deploys real-time protection to ongoing, new and emerging threats. IBM’s dedicated security researchers now use cognitive detection capabilities with an automated malicious pattern recognition tool to help financial institutions identify anomalies and understand and prioritize evolving threats.

This tool allows researchers to quickly analyze and classify new threats by correlating unstructured data to reveal threat patterns indicative of malicious activities. It gives researchers actionable insights to help detect new forms of malware.

Preserving the Customer Experience

With the ability to analyze, understand and continuously learn from data, IBM’s cognitive fraud detection capabilities help financial service providers more accurately and transparently determine if customers are who they say they are. It can also help detect new online banking threats as they emerge.

Using cognitive fraud detection across multiple security layers helps preserve the customer experience, and aids financial institutions in detecting fraud more accurately and more quickly than ever before. With the introduction of cognitive fraud detection and behavioral biometrics, IBM Trusteer now offers its customers an additional layer of protection in a single, scalable platform that uses multiple layers of identity indicators to help keep online banking sessions more secure.

Learn more about how to outsmart Fraudsters with Cognitive Fraud Detection

Brooke Satti Charles
Financial Crime Prevention Strategist, IBM Security

Brooke Satti Charles is a Financial Crime Prevention Strategist within IBM Security. Her career has been focused on research and reporting of fraud, money la...
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