Digital Banking Fraud Archives - Infosecurity Outlook

SentiLink Identity Verification startup raised $70 million in Series B funding

Posted on August 9, 2021 by admin

SentiLink announced that they have raised $70 million in Series B funding, led by David Sacks of Craft. The funds are already being used to develop new products, beginning with the launch of “KYC Insights” product at the end of September, as well as to research new fraud issues such as credit washing, J1/F1 fraud, and the laundering of stolen public benefits funds. And as new issues arise with their partners, they will address them as well.

Identity verification is especially bad in the United States. The SSN is the United States’ national identifier, which is supposed to be unique and secret but is neither. Citizens’ identification cards are rarely used and are easy to fabricate. Organizations spend a lot of time and money on this problem, but fraud persists, and honest people are subjected to unnecessary friction and false positives.

SentiLink believes that determining whether someone is who they claim to be can and should be simple and effective. Organizations should be able to detect and prevent fraud in such a way that consumers are unaware. It should be simple, inexpensive, and functional.

SentiLink announced that they’ve raised $70M in Series B to make this vision a reality, led by David Sacks at Craft. The company is already using these funds to develop new products, starting with the launch of our “KYC Insights” product at the end of September, and to research new fraud issues, like credit washing, J1/F1 fraud, and the laundering of stolen public benefits funds. And as they discover new issues with our partners, they will tackle those as well.

Nethone raises $6.7M Series A Funding to combat online fraud

Posted on July 16, 2021 by admin

Nethone’s passive behavioural biometrics enables online businesses to stop over 95.3 percent of account takeovers (ATO), which have been spreading at an alarming rate around the world. Aside from ATO, the Polish fraud fighter has been prospering in its payment and financial application use cases, consistently demonstrating a fraud detection precision of over 10 p.p. greater than traditional methods.

Along with Innovation Nest, Plug and Play Ventures, Firlej Kastory, and numerous business angel investors, Atmos Ventures and ARIA are headlining Nethone’s most recent fundraising round. Nethone will use the Series A funding to accelerate its go-to-market activities and strengthen its exclusive Know Your User (KYUTM) profile technology, giving global leaders the tools, they need to fight fraudsters.

Given the pandemic-induced surge in demand for direct-to-customer online commerce (both web and mobile) and the associated next-generation financial services, COVID-19 elevated the importance of cybersecurity. Nethone has been able to more than double its customer base in the last year, as well as increase the volume of onboarded clients across the eCommerce, digital products and services, and financial services verticals.

Hubert Rachwalski von Rejchwald – Nethone’s CEO said, “The last year has seen an unprecedented spike in fraudsters’ activities. COVID-19 has fueled a ‘professionalization of fraud’ trend that Nethone has been observing systematically escalate since the company’s inception in 2016. “Barriers to entry for fraudster-wannabes have been steadily decreasing. More and more sophisticated SaaS-based tools became available for anyone with some financial resources at their disposal. Today, these are advanced technical solutions built by well-organized, highly experienced groups of rogue IT experts. Wrapped in a user-friendly interface and excellent customer support they allow for complex anonymisation and automation functionalities as well spoofing of historically trusted digital identities that most of the incumbent fraud detection solutions stand no chance of spotting.”

“The forward-looking answer to anyone who wishes to effectively transact online is to deeply understand every single user, as they browse the website or use a mobile app. Our KYU profiling technology gives access to first-hand real-time insights about what is really happening with the device, how this device interacts with the servers of the platform and, last but not least, what is the raw behavior – keystrokes, mouse movements, gyro or accelerometer readings, touches on mobile). These are currently over 5000 attributes that we are extracting passively in the background about every single user thanks to years of targeted research and engineering, Importantly our goal is never to affect the customer journey by staying invisible in the background nor invade end-user privacy thanks to the low-level nature of the attributes we collect” – adds Aleksander Kijek, Nethone’s CPO.

Apart from extending its go-to-market operations, the business intends to use the funds to accelerate roadmap advancement, with a focus on features that will optimise perceived value among the company’s target categories.

“With the post-COVID critical significance of fraud prevention and the fierce competition in creating the frictionless user experience, Nethone has a novel approach to profiling technology fueled by machine learning. And since Atmos is focusing on developing deep technologies in ML-driven commercial solutions, Nethone Profiler combined with the explainability of the machine learning models was an obvious choice for us. We are elated to join the team to arm online merchants with deep tech tools against fraudsters,” said Hadi Solh, Managing Partner at Atmos.

Dariusz Lewandowski, CEO of ARIA said, “The accelerated growth of eCommerce in the pandemic era – up 30% in value by 2020, naturally increases the scale of fraud in the digital space. Nethone solves the problem of online payment and identity fraud, with annual losses worth around $50 billion. Their technology provides maximum protection without affecting the end-user experience. I see huge potential for the application of this technology, including other companies in our portfolio – wherever payments are involved. I am impressed with Nethone’s highly motivated team, as well as the organizational maturity for an early-stage company. Nethone has proven successful in onboarding clients ranging from traditional banks to fast-growing start-ups across the globe.”

How can Banks Combat & Mitigate the COVID-19 Fraud Attacks

Posted on April 14, 2020 by admin

Coronavirus is continuing to impact several lives of people and the economy worldwide; fraudsters are busily engaged in phishing and scamming mayhem. Both coronavirus and coronavirus scams can affect your health and finance. While the world is trying to deal with the threat of COVID19, cyber-criminals are coming with innovative ways to perform sophisticated frauds based on the continuing COVID – 19. Across the globe, people are working remotely with limited security features as opposed to working in the office. Everyone is in quarantine and following the social distance protocol. Owing to which everyone is shopping online for their daily needs. It is quite evident now customer shopping behaviors worldwide have changed and will persist in doing so in the times ahead. Doubtlessly, cybercriminals will keep following the trends of consumers and adapt their plans appropriately.

In most companies, fraud is identified post it happens; it’s imperative for financial organizations with the rise in technology, fraud detection, and mitigation takes place in real-time. They should adopt a real-time fraud management solution that can be tailored in accordance with their requirements. As online shopping continues to grow, even the security of online channels should become stronger and more advanced. Detecting frauds at a very early stage at the same time optimizing the customer experience should be the motto for banks. Various enterprises are plunging into a multifaceted method to combat and alleviate frauds. Acting recklessly with a haste plan can cause more damage than any good in the current COVID-19 situation.

Several types of fraud are hitting both the merchants and the consumers in these difficult times. Banks should conduct further authentication steps to access data, also adapt the limit for any fraud ranking models, enabling more false positives which support in preventing frauds. Banks or financial organizations should comply with regulatory compliance to alleviate risks. With a swift system in place, banks can be agile and smoothly alter algorithms or update models to safeguard their customers’ security.

Presently frauds are majorly attacking Business Email Compromise (BEC), Phishing, Gift Card Fraud, fake and fraudulent sites, eCommerce Fraud, Account Fraud, and such others. As It is easier to get distracted at home or be under different stress; hence such an audience becomes a soft target, and most people are falling prey to such fraudulent activities

COVID-19 phishing attacks – It started to rise in January 2020 and by the end of March 2020 it had a sudden surge. Most of the phishing attacks comprised of brand spoofing, scams, fraud emails, and business email compromise (BEC).

Disclaimer: Actual Numbers in the graph may vary as these are approximate figures.

Preventive measures to avoid frauds

Incorporate ML and AI-powered fraud detection solution

With the support of ML and AI, the fraud solution can consolidate data from all internal and external channels and analyze historical data, enabling the risk model to detect anomalies and abnormal behavioral patterns. Hence one of the best practices recommended is to integrate fraud management software coupled with intelligent automation, and advanced AI and ML.

Secondly, some fraud solution experts use risk scoring, device fingerprinting along ML and AI approach for detecting anomalies in payments and combating fraud attacks. The ML models can spot the probability of HTTP referrer is a phishing site and how to react to the phishing scams scenario. Sophisticated risk engine incorporated with AI and ML continuously monitors transactions and detects various fraud patterns along with the actual series of user behavior and continuously monitors and scrutinizes data. Whenever anomalies or fraud attacks happen, frauds can be detected by the fraud management solution in real-time, suggesting enhanced fraud protection layers.

In this rapidly evolving dynamics, the financial domain is facing a radical metamorphosis and customers expect banks to deliver a seamless experience. Smart banks advise today a comprehensive fraud approach demanding the intervention of human touch with sophisticated technology. Hence banks are embracing new technologies which help in flagging suspicious transactions and reducing false positives thereby minimizing losses and optimizing the customer experience.

Embracing multi-faceted and multi-layered security approach

A lot of sensitive information of entities and companies exists with banks. If hackers get access to such sensitive information, then the probability is higher to initiate a breach or fraud attacks. To combat such situations with stronger performance and response, it is becoming crucial for banks to embrace a multi-layered approach to cyber-safety.

Financial organizations must spend in data-ingestion from multiple channels enabling them to make a sound decision on fraud attacks and fraudulent activities. Integrating a series of valid tools like multi-layered approach, biometrics, behavioral analysis supports in minimizing frauds to a greater extent. It also helps in offering the right security level in accordance with the fraud levels.

Enhanced Protection for mobile payments

Many of us use mobile phones to shop online and pay through various channels and gateways. This is the reason cybercriminals are aiming the mobile platform in parallel with others. Whenever any person clicks on any unknown links or downloads any attachments, malware, trojans or virus can get downloaded which could steal sensitive and personal data, which may further lead to the malfunction of websites.

Hence banks should implement multifactor authentication, additional account verification, end-to-end cryptography, fingerprinting device, providing real-time messages, alerts, and emails, proper banking mobile application, investigating behavior analysis, and using secure access with safe online documentation. This can help in monitoring financial transactions continuously, ensuring safety, and blocking fraud threats.

Fraud Risk Management Solution

The fraud management solutions should help banks to safeguard from fraud attacks, detect and mitigate frauds and anomalies.

For an effective fraud management solution, you should bear the below pointers in mind –

Can the fraud management software be integrated with the prevailing software model to enhance the fraud mitigation layer?
Does the fraud management platform support multiple payment channels across different geographical locations?
Is your fraud management solution, providing a deep insight into model analytics or it is just merely a Black Box?
Does your fraud management program meet your expectations and appetite?
Is it possible for your fraud management solution to ingest data from any channel during the customer lifecycle?
Is your fraud management software coupled with intelligent automation, advanced ML, and AI?
Is the fraud management solution able to detect frauds, trigger the right alerts, provide the right investigation, offer recovery or backup plans with appropriate communications?
Is it improving the overall operational efficiency?

In difficult and uncertain times like this, we all are going through a tough phase. We are compelled to stay in isolation and work from home for our safety and protection. We must move slowly, watch out for minute details and refrain from taking hasty decisions. Banks should monitor coronavirus linked scams and implement a good fraud management solution to stay ahead of frauds. Stay vigilant and Be wise.

eCommerce Fraud Overview | Fraud in eCommerce

Posted on March 20, 2020 by admin

eCommerce is a big platform, increasing at an unparalleled pace globally; it constitutes a substantial possibility for brands and businesses to sell their goods and services. Consumers in recent times can purchase online products with multiple choices of brands at their ease and comfort. This gives customers an upper edge for an appropriate decision as they can do comparative pricing at a lesser cost without middleman intervention, thereby supporting eCommerce giants to perform at their best. Owing to this, there is an upward trend in online shopping in the last few years and eCommerce is undoubtedly the booming sector in online business.

The rapid expansion of online sales has introduced many competitors and significant contribution comes from online merchants like Amazon, Alibaba, eBay, etc. Online merchants are exploring multiple ways to generate additional traffic and sales. Hence the companies are creating numerous marketing strategies to increase their sales such as holiday sales, Black Friday sales, cyber sales, and much more to generate surplus traffic and sales. eCommerce can provide tremendous advantages if the company can differentiate amongst the genuine customers and fraudsters who are trying to escape amidst the multitude. With eCommerce growth, online fraud is also growing with skilled fraudsters using technology to hack systems, and criminals are continuously leveraging new types of sophisticated frauds.

eCommerce fraud

When a fraudster leverages embezzled payment details or fraudulently obtained bank account or credit card accounts to attempt or make online or retail transactions without the consent of the account or card owner is eCommerce fraud.

Major eCommerce frauds

Merchant Identity Fraud – Fraudsters create fake identities establishing a merchant account that appears to be an authentic business. Furthermore, they rob stolen credit card information to conduct multiple charges then proceed with the earnings prior the cardholder comprehends they have illicit transactions on their accounts and cannot retrieve the funds and held responsible for the damage and penalty.
Friendly Fraud or Chargeback Fraud – Customer pays for the online products using a debit card or credit card. In addition, they intentionally charge-back post after receiving the products declaring they never got the goods. Later, the customer is given a refund moreover the customer keeps the goods that they stated never received. Most of the time, the commodities are sold again to get money.

The other types of eCommerce frauds are Phishing, Clean fraud, Page Jacking, Affiliate Fraud, Triangulation Fraud, and Supplier Identity Fraud.

Online payments, digital wallets are luring more attention from cyber-criminals due to the prevailing limitations making this kind of fraud swift and simple to conduct which is quite often overlooked and unseen by users. Simple and easy pin passwords, non-coded data leverages hackers to exploit more and steal personal details and identities. Therefore, it is imperative for businesses to adapt to eCommerce fraud trends, monitor and analyze them to alleviate fraud risks and vulnerabilities.

In the current scenario, digital evolution is the critical factor for most of the enterprises and their expansion in the market who are embracing new technologies thereby shifting towards merging cashless economy, cloud deployment, mobility, an outbreak of Internet of things (IoT), and automation. The amalgamation of all these systems and technologies is enabling a data-controlled method to mitigate several financial risks and fraud threats throughout the financial landscape.

To combat and alleviate eCommerce frauds some far-sighted measures like ML, AI, IoT, and automation are adopted. eCommerce in the fraud space must be given the required attention and protection with the EFM platform, integrated with advanced technologies, cognitive learning, and automated tools helping to battle and block online frauds from digitalization.

Growing Fraud and Mitigation Trends | EFM Trends

Posted on March 6, 2020 by admin

In this digital era, fraud is getting sophisticated and is the most accelerating concern of this digital age. eCommerce and online payments are growing swiftly, resulting in a gigantic shift to mobile and digital applications, maneuvering to seamless payment executions. Frauds are performed in a sophisticated manner on the dark web leaving the least amount of time for banks and systems to battle frauds. A few of the emerging frauds are money laundering and terrorist financing, account frauds, and identity thefts. Hence, it’s vital for financial organizations to embrace advanced AI, ML technologies in Enterprise Fraud Management solutions as opposed to the conventional approach to block and mitigate financial thefts. EFM solutions aids in reducing operational losses, detecting and alleviating fraud attacks, and maximizing the overall customer experience.

EFM platform provides s real-time screening of transactions across all channels and payment types. An increasing number of internal and external frauds with access to payment card data, personally identifiable information (PII), sim card cloning, and stolen credentials by fraudsters are resulting in a substantial financial and reputational loss. Furthermore, cybercriminals are increasingly targeting mobile channels for login attacks as customers across the global regions are adopting mobile applications for various financial transactions and online sessions.

The banking sector is concentrating on centralizing its risk management process, integrating all the key capabilities, analytics, systems to combat fraud efficiently. They are also emphasizing constantly updating fraud management processes with updated rules and models. Multiple financial organizations are acquiring real-time data of transactions from all channels and external data, thereby helping to enhance the accuracy in the identification of frauds.

The financial sector is experiencing a revolutionary metamorphosis, and higher hopes of customers expect banks to perform a smooth experience. In the modern world of intricate fraud attacks, financial enterprises are incorporating new technology innovation in the EFM solutions for identifying and mitigating internal as well as external frauds in the fraud domain.

Learn more about other EFM Trends here.

Emerging Fraud Trends in 2020

Posted on February 21, 2020 by admin

Let’s sneak a peek into major emerging fraud trends in 2020 to combat frauds. With evolving technology frauds are getting sophisticated. It is crucial for financial enterprises to be vigilant on various emerging frauds, quickly detecting and mitigating them.

SMS Spoofing – is an emerging trend with the increasing use of mobile networks globally, sending bulk SMS by replacing the original mobile number, details with alphanumeric text and using it for deceiving and illegitimate acts. SMS spoofing is also used to conduct APP frauds, using technology to impersonate a reliable such as PSP as a sender of an SMS message. Targets and victims get these messages showing up from banks to which they react and respond thinking it’s from their banks however these are from the fraudsters waiting for an opportunity to commit fraud. The prevalent example of SMS spoofing is the text message comprising links to mobile malware suck links if clicked by mistake could lead to a malicious app being installed on your mobile thereby stealing your identity or valuable files for redemption.
Authorized push payment fraud (APP) – FCA (Financial Conduct Authority) executed a rule with effect from 31st Jan 2019, enabling victims of APP fraud with specific criteria to complaint to both, the sending PSP and receiving PSP supplier and not just to the sending PSP. Implementation of this rule has helped in reducing the fraud rates thereby fighting real-time payment fraud. This also is trending as a strong layer in managing data integration and leverage analytic insights thereby minimizing and combating APP fraud.
e-Commerce Fraud – With e-commerce growth, online fraud is becoming sophisticated with the use of the latest technology to hack systems, such as online payment fraud, identity fraud, mobile fraud, digital wallet fraud, data breach, and loss of personal data. ECommerce in the fraud space must be given the required attention and protection with the EFM platform, integrated with advanced technologies and automated tools helping to combat and mitigate evolving online frauds.
Social and Voice Banking – Financial organizations are using innovative channels like social and voice banking such as Alexa, chatbots which are developing avenues for automated systems. With new channels come new challenges such as registration services are not robust and have certain loopholes which the cybercriminals take advantage of and conduct frauds.
Breaching 2FA – LinkedIn, Gmail, Facebook, Skype, and Google are using two-factor authentication (2FA) which creates a second layer of security curbing data breaches and identity attacks. However, cybercriminals and hackers are tech-savvy, conducting sophisticated frauds using technology to their advantage are accessing personal information, compromise systems, and clear bank accounts or take over the accounts (ATO).

Increasing Identity Theft and Synthetic ID Fraud – Financial landscape is experiencing a revolutionary transformation, and tech-savvy customers expect banks to deliver a seamless experience. In the era of sophisticated threats, it is imperative for organizations to utilize AI and ML-based technology in EFM, to differentiate among anomalies, suspicious and harmful frauds. AI and ML are becoming critical, empowering banks to manage large volume datasets, early detection of behavioral patterns, ensuring safety and security of data integration, deep analytics insights, personalized customer experience, automated systems, reduced false positives, optimized operational efficiencies, reduced costs and maximized profits.
ATM Fraud – Increasing ATM services by banks such as real-time payments, card-less cash withdrawals are also leading to sophisticated fraud attacks such as card skimming and card shimming attacks, leading to emerging growth in ATM fraud and attacks.
Deepfakes and Voice Biometrics – Voice-fraud is the latest form of deepfake technology, emerging as a major threat in the fraud landscape. Fraudsters recently made headlines in the USA for deep faking voices of various CEO and established people. Conmen are perfecting deepfake to impersonate people to conduct fraud. With advancing technology, it’s really challenging to differentiate between original identity and fraudster. Cybercriminals may use deepfake on a larger scale to attack the C-suite and PSP’s verification measures to perform financial fraud.
Institutional Disruption – Cybercriminals are constantly hunting for large-scale campaigns causing disruption. They can perpetrate data of bank mergers and acquisitions by asking customers to re-verify credentials, update data and settings resulting in ATO attacks. Institutional disruption is likely to rise in the near future.
Digital Transactions – The new Age digital transactions are significantly Increasing Enterprise Risk Landscape and Vulnerabilities. Digital transformation is the foundation of most enterprise strategies today, and its increasing pace is significantly impacting technologies thereby drifting towards the integration of cashless economy, cloud adoption, mobility, the explosion of the Internet of Things (IoT), and deploying new solutions. The integration of all these systems, technologies are enabling a data-driven approach posing various security threats, as these inter-connected systems accelerate the speed and threats of attacks across the financial globe.

Enterprises are battling security issues with the increasing network complexity, rising gaps in security protection, polymorphic attacks, and compliance issues. It’s imperative for businesses to be secure, vigilant, and follow security best practices such as integration, automation, using technology and data to drive innovation. With the ever-growing digital transactions, enterprises are digging in real-time data analytics and blockchain integrated with cognitive learning to prevent risks arising from digitalization.

In 2020 financial enterprises are embracing new technology innovations and integrating intelligent automation with AI and ML into their EFM solutions. It is time, financial organizations to think differently and take advantage of updated technologies and integrate them into their processes.

Increasing Fraud and Information Theft | EFM Trends

Posted on February 14, 2020 by admin

There is a significant shift in the fraud landscape, with increasing fraud risk rapidly growing across the financial institutions. Fraud is cited as the most accelerating problem of the digital world. Exposure in online payments is on a rising toll, resulting in a big switch to mobile and digital apps, leading to swifter and smooth payment executions. Due to this, banks and systems get less time to detect and identify hidden funds when required. Furthermore, fraud is conducted in a sophisticated manner in the deep dark web.

Major types of emerging and increasing frauds

Money Laundering and Terrorist Financing – Both money laundering and terrorist financing goes arm in arm, firstly illegal money is laundered then sponsored for terrorist activities.
Identity Fraud/Thefts refers to a crime in which the criminal acquires and use the victim’s data particularly in extracting his/her money or credit in an unlawful manner through illegal ways for wrong motives such as making transaction, online purchases or getting a tax rebate. The contextual information of people is sourced through loan application forms, online purchases, digital wallets, mobile banking, internet resources, from lost or stolen wallets or phishing frauds, or through medical and financial data.

Types of Identity Thefts

Account Takeover (ATO) refers to inappropriate use of credentials (name, signature, etc.) and seizes control on a bank account without the owner’s permission and fraudsters performing unauthorized transactions such as fund transfer, online transactions, and shopping.
Driver’s License Identity theft is a prevalent form of Identity Theft. The person involved in stealing your identity may purchase things in your name also manage to obtain other forms of identifications with their photo and use them for unlawful activities.
Mail Identity theft is a very popular identity theft (ID) in which the criminals steal your sensitive and personal information to access your financial data, then make purchases, or even apply for new credit cards.
Online Shopping fraud / Ecommerce thefts refer to a criminal accessing customers’ payment or sensitive information through hacking systems later using them to purchase groceries, clothes, or goods online without the owner’s knowledge.
Social Security Number Identity theft could happen from tax identity theft or even circulars floating in your mailbox. With the stolen SSN numbers the thieves can easily commit crimes and fraud in your right name or also create another identity, exploit further for their selfish intentions.
Senior / Elder scams are crimes in which the elders are targeted with all kinds of schemes; criminals take advantage of their isolation and lack of technical know-how. The elders are soft targets and can be easily duped by taking their account or card information and used for criminal activities.
Email compromise (entity/business) is an increasing phishing fraud; the criminal takes control of your business email account by a hacking password then conducts wire transfers and such unlawful activities.
Insurance Fraud is any act executed to deceive an insurance process. Insurance fraud occurs when an individual or establishment makes incorrect insurance claims to acquire advantages or remuneration for which they are not entitled to or owned.
Credit Card and Debit Card Fraud is an example of Identity Theft (ID) in which both the cards are used without the owner’s knowledge to make unauthorized purchases, shop online / offline, or retrieve funds using the victims’ account.

Fraud identification and mitigating frauds are the heart of every risk management system. Banks select EFM solutions with features satisfying their overall work processes and framework requirements. Several functions and features are important to be considered while making an EFM platform selection. It should detect and prevent frauds across all channels, considering a lot of aspects such as customer financial data, mobile data, user access data, user demographics, financial patterns, etc.

Financial institutions experience hidden challenges while integrating the EFM platform into their system such as reducing losses, detect and mitigate rising frauds and enhance the customer experience. The fraud management solution should also consider integrating options, smooth arrangements, customer service experience, machine models, e-commerce fraud combating solution with a combination of ML and human intelligence, and much more. Banks are adapting updated technologies in EFM solutions against legacy methods to prevent and combat identity thefts.

The Rise of Blockchain Technology in Risk Landscape

Posted on February 7, 2020 by admin

Blockchain is a database framework that is divided and shared within the network framework, maintaining a record of each cross-border payment transaction. All such transactions and data entries are recorded in a specific sequence and non-changeable order which are chained together in blocks, giving the technology its name.

Blockchain aids not only in identifying frauds but also safeguards the links within the blocks and contents by encrypted data, this way the prior transactions cannot be damaged or forged. The cryptographic format supports the early detection and mitigation of fraud in the risk domain. It’s a rapidly emerging solution for secure, swift, and cost-effective money remittance service. Markets that are distinguished by reduced penetration, heavy demands for banking services, increased level of mobile penetration, etc. should adopt Blockchain for enhanced remittance services.

It offers an array of benefits such as allowing peer-to-peer (P2P) transactions, ensuring safety and transparency, mitigating frauds, cybersecurity, and optimizing operational costs. Due to this financial sectors are allocating better resources to apply Blockchain technology into their systems. Blockchain technology has the ability to build faith and transparency in organizations. Furthermore, supporting in the verification of documents of various entities and products, providing automated transactions, and reducing forged remittances.

Emerging establishments are gearing up to take advantage of Blockchain technology in their flourishing payment markets. It also helps in swift and secured cross-border money remittances with minimal intervention of middlemen, thereby saving costs on money remittances and minimizing losses caused due to frequent fluctuation in currency value.

Blockchain technology has the potential to transform the conventional business model to modern systems thereby ensuring safer, swifter, and cost-effective transactions with minimized frauds. We all should be aware, Blockchain is here to transform the banking sphere.

Anti-Money Laundering and Compliance in Peer to Peer (P2P) network

Posted on January 31, 2020 by admin

Peer to Peer (P2P) network

P2P network comprises various computers interchanging data, files, transactions from multiple interfaces and channels without the intervention of a middleman. In simple words, every computer or mobile on a P2P network works on a client/server principle in which the user makes a request, and the server executes the requests without third-party intervention. Some of the familiar P2P programs encompass Kazaa, Morpheus, Bit Torrent, and others. These programs link to a P2P network allowing computers to connect with multiple systems within the framework. This software provides access to other entities’ computers, allowing sharing of files and information leading to piracy and fraud issues.

P2P method of functioning is also known as equal client system as the task is distributed evenly, data is exchanged swiftly and fulfilled smoothly.

P2P works on two models, one is Pure P2P and the second is the Hybrid P2P model.

Pure P2P network does not have a structured and centralized platform; the service requests from peers go directly to other peers who respond or fulfill such requests. In such a scenario, all the peers who are transmitting information and the peer on the receiving end are treated equally. In other words, one is acting as a server and the other as a client. Gnutella12 and Freenet are examples of Pure P2P networks.
A hybrid P2P network has a centralized platform in which the peers have access to each other’s files and data connects through more than one type of technology or topology via Wi-Fi and ethernet cables. A hybrid P2P is a commonly used network on the P2P platform. Few famous examples of “hybrid” file sharing Peer-to-Peer networks include Kazaa and Bit Torrent.

Skype, Web Logic application server, PayPal, Darknet, and Bitcoin currency are few examples of P2P network applications used globally.

With a greater number of enterprises adopting P2P network the security risks and frauds associated with P2P network is also increasing at an alarming rate. As the payments are made in a speedy manner, the fraudsters perform frauds in a sophisticated way. The criminals take advantage of instant payoff by hacking into their systems and embezzle data from the users and the banks. You will be perplexed to know how these fraudsters hack and attack all such types of live payments. Along with the transactions they also obtain contextual and sensitive details from all channels and sources they could trace. They will keep committing such frauds unless such accounts are blocked, or till some stringent action takes place.

One of the main frauds in a P2P network is Identity Fraud, which is a kind of crime that steals and misuses all the user information. Users’ capital /money is accessed and transferred to the criminals’ accounts through illicit ways for their selfish motives. Identity thefts are rapidly growing across the financial domain hence cited as the fastest growing crime problem of the digital age. Some types of Identity thefts are mail identity theft, online shopping/e-commerce theft, social security number theft, and credit card theft. Due to the increasing rise in such frauds, all companies using the P2P platforms must be vigilant and need to have Anti Money-Laundering (AML) software in place to combat and mitigate such frauds. Banks are adapting updated technologies in AML solutions against the legacy methods to prevent and combat identity thefts, AML solutions provide information helping people to safeguard their personal information and private records such as credit reports.

Some traditional AML solutions are unable to keep pace with the increasing magnitude and convolute nature of financial transactions that need to be scanned for laundering activities. Meanwhile, money launderers are continuously exploring innovative ways to conduct illegal financial transactions, the institutions attempt to pace up with these increasingly sophisticated criminals. It’s imperative and necessary to have an inventive technology that can battle against money laundering in an adaptable, pocket-friendly, and extensive way.

Basic types of software addressing AML and Compliance in Business Requirements

Transaction Monitoring Software- This software helps in detecting and preventing malicious activities and anomalies catering to money laundering activities in P2P networks. Lastly reporting all such suspicious transactions to the relevant or concerned department and preventing them from happening again. In AML software, some of the modules covered are Watch List Screening, Transaction Monitoring, and Alert and Case Management.
Currency Transaction Reporting– This segment of AML software detects transactions comprising a large amount of capital or a plethora of small transactions compiling a large amount of cash or capital, and such activities are flagged compulsorily.
Customer identity management systems – This category primarily focuses on all black-listed customers and individuals who have been blocked and flagged to an institution. Some features like sanction checklist, politically exposed person (PEP) checklist, fraud identifying system, false positives, and entities receiving unfriendly media attention are detected by AML software and lastly auditing and reporting.
Compliance software – This bent helps in adhering to AML regulatory essentials, preserves detailed records of employees, scheduled audits, and trace reports submitted to government authorities. Know your customer (KYC) / Customer, Due Diligence (CDD) Due Diligence Screenings and Enhance Due Diligence (EDD) are also included in the compliance parameter.
ML for anti-money laundering identification – ML for AML is future banking since the financial sphere is experiencing revolutionary transformation, tech-savvy customers expect banks to deliver a smoother and swifter experience. Due to this, banks and financial institutions are embracing new technology innovations and integrating intelligent automation ML into their AML compliance solutions. This helps in empowering banks to manage large volume datasets, combat and prevent frauds quickly thereby optimizing operational efficiencies, reduced costs, and maximizing profit.

While purchasing AML software, it’s important to do the right homework for your company and get customized AML software designed for your company.

TrapX Security Recognized as Clear Technology Leader in Deception Technology

Posted on January 29, 2020 by admin

San Jose, CA – January XX, 2020 – Quadrant Knowledge Solutions has announced today that it has recognized TrapX Security as the Technology Leader in Deception Technology.

Quadrant Knowledge Solutions conducted an in-depth analysis of the major deception technology vendors by evaluating their product portfolio, market presence, and value proposition. According to the analysis, TrapX, with its robust and comprehensive DeceptionGrid platform, has secured strong ratings for the overall parameters of technology excellence and customer impact and emerged as the clear technology leader.

Highlights of the report:

Deception technology offers a unique value proposition for threat detection and response, positioning organizations in the driver’s seat and actively engaging with cyber criminals with the use of a fake deception environment. The approach has proven to provide accurate threat detection in the early stage of attacks with significantly less or almost zero false positives.
TrapX DeceptionGrid multi-tier approach combines network emulation traps with real OS, offers a deep level of engagement, and supports enterprise-grade scalability. The comprehensive technology capability positions TrapX as the industry-leading provider of deception technology solutions across all deception use cases.
The majority of the deception tools available force a tradeoff between deep deception at low scale (virtualized decoys) and low interaction at large scale. TrapX has innovated the market by combining emulated decoys which can proxy attacker activity to high interaction decoys supporting deep deception at enterprise-grade scalability.
TrapX product strategy and roadmap is in line with the evolving threat landscape to provide comprehensive protection against next generation of targeted, smart, adaptive malware attacks, and automated attacks across an IT, OT (operational technology), IoT (internet of things), and cloud infrastructure environment.

“The innovative and sophisticated technology platform of TrapX is able to provide enterprise organizations with signatureless detection of sophisticated malware and other attacks,” said Divya Baranawal, Industry Research Manager at Quadrant Knowledge Solutions. “We were impressed by TrapX’s ability to fulfil all deception use cases without compromising enterprise-grade scalability.”

“This has been a year of record growth for TrapX, with organizations in finance, healthcare, manufacturing, and more choosing our patented deception technology over competitive options. Our ability to provide deep deception at enterprise-grade scale for IT and OT networks is disrupting a market historically dominated by legacy virtualized honeypots. This report further validates the choice our growing customer base has made,” said Ori Bach CEO of TrapX Security.

This announcement comes as TrapX closes out a record year with accelerated growth and significant competitive wins across the globe. In 2019 the company expanded its customer base in the healthcare, finance, and manufacturing sectors and has shown record revenue:

On July 1, 2019 TrapX announced that it secured $18 million in a series C financing round designed to expand the company’s global footprint to additional countries and verticals.
On July 29, 2019 TrapX announced that it appointed veteran sales exec Frank Sacco to expand and lead its global sales organization.
On November 13, 2019 Security Current, the premier CISO knowledge-sharing community, announced that CISOs from across industries selected TrapX as the winner of the Security Shark Tank® New York City 2019.
On November 14, 2019 TrapX released a case study featuring Procter & Gamble, a Fortune 100 company, on how its product, DeceptionGrid™, was used to transform Procter & Gamble’s cyber resilience program.
On November 15, 2019 TrapX announced that it had appointed NASDAQ veteran Mike Fabrico as its new Chief Information Security Officer.
On November 21, 2019 TrapX announced that it joined forces with Fortinet®, in order to provide real-time visibility, threat detection, improved incident response and rapid threat containment, leveraging the capabilities of Fortinet Fabric solutions.
The analyst firm Gartner recommended to security and risk management leaders to “include deception tools as an alternative in any threat detection initiative, as a main tool for small and midsize enterprises or as a complement to other approaches. At the very least, deception tools will offer high-quality alerts via an easy-to-manage ecosystem of simple landmines that nobody is supposed to touch.” *Gartner, Improve Your Threat Detection Function with Deception Technologies, Gorka Sadowski et al. March 27, 2019.
On December 11, 2019 TrapX announced that it named Ori Bach as its new Chief Executive Officer.

To obtain the report by Quadrant Knowledge Solutions visit:

https://trapx.com/landing/trapx-quadrant/

About TrapX Security

TrapX Security is the pioneer and global leader in cyber deception technology. Their DeceptionGrid solution rapidly detects, deceives, and defeats advanced cyber-attacks and human attackers in real-time. DeceptionGrid also provides automated, highly

accurate insight into malicious activity unseen by other types of cyber defenses. By deploying DeceptionGrid, you can create a proactive security posture, fundamentally halting the progression of an attack while changing the economics of cyber-attacks by shifting the cost to the attacker. The TrapX Security customer-base includes Forbes Fortune 500 commercial and government customers worldwide in sectors that include defense, healthcare, finance, energy, consumer products, and other key industries. Learn more at www.trapx.com.

About Quadrant Knowledge Solutions

Quadrant Knowledge Solutions is a global advisory and consulting firm focused on helping clients in achieving business transformation goals with Strategic Business and Growth advisory services. At Quadrant Knowledge Solutions, our vision is to become an integral part of our client’s business as a strategic knowledge partner. Our research and consulting deliverable is designed to provide comprehensive information and strategic insights for helping clients formulate growth strategies to survive and thrive in ever-changing business environments. For more available research, please visit https://quadrant-solutions.com/market-research/.

Trademark Notice:
TrapX and TrapX Security is a trademark of TrapX Security, Inc.

More Information:
Visit the TrapX Website: https://www.trapx.com

Hear what the users of DeceptionGrid have to say about the product: https://www.youtube.com/watch?v=U0EiOgh0fng

Learn more about DeceptionGrid: https://trapx.com/product/
Visit the TrapX blog: https://www.trapx.com/blog/

Follow TrapX on LinkedIn: https://www.linkedin.com/company/trapx

Follow TrapX on Twitter: @trapxsecurity
Follow TrapX on Facebook: https://www.facebook.com/pages/TrapX/258804147648401

Press Contact:

Jeff Bajayo

Jeffb@trapx.com

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