Preventing Online Banking Fraud through Anomaly Detection

SAN JOSE, Calif. - May 29, 2013 - PRLog -- nProtect, a global internet and mobile security provider, announced its release of nProtect Fraud Detection System, which can be used by financial institutes to proactively prevent online banking frauds from happening.

Detecting problems after they occur and taking appropriate measures can cost financial institutes unnecessary damages. If the online fraudster has already made some transfers, financial institutes may not be able to recover all the money. If the malware used for this attack infected several clients, the financial cost could be very high and the brand could be significantly damaged.

Instead of taking action after the attack, financial institutes should be focused more on detecting any anomalous transactions and stop them in advance. For this method, financial institutions usually have all the necessary information – transaction amount, date, location, and frequency.

Financial institutions must first analyze each individual’s transaction pattern and apply this pattern to all the transactions a client makes thereafter. For example, if a client named John normally makes an average of $1000 transfers weekly in Los Angeles, California, that pattern of DNA will be recorded in the financial institution’s system. When an abnormal transaction of $5000 occurs in China, a red flag will be raised and the bank can be notified immediately to either contact the customer to verify and stop the transaction.

To make this system in an easily implementable way for financial institutions, nProtect released nProtect Fraud Detection System (NFDS). The security program will collect the necessary information to create a pattern DNA for each online banking client and warn the security manager of the bank should there be any abnormal patterns detected. Financial institutions have the option to choose what kind of information they would like to collect from their clients for the system.

The financial institution has the option to choose anything from the client’s geo-location to IP address that will be used to create analysis of pattern. By selecting more in-depth information like the client’s OS, Mac address, and proxy IP, financial institutions can even support the investigation by having the necessary information to track down online fraudsters.

While it’s important for online banking clients to have anti-malware tool that can help prevent online frauds from occurring, online fraudsters are constantly upgrading and altering the malware to avoid detection by modern anti-malware tools. That is why it’s important for financial institutions to have another layer of security that does not rely solely on tools that can be easily manipulated.  

About nProtect, Inc.

Founded in January 2000, nProtect, also known as INCA Internet, is headquartered in San Jose, California and provides online and mobile banking/payment security to financial institutions. Over 100 million endpoint users from more than 1,020 organizations rely on nProtect’s online security solutions to secure their computer and mobile devices against malware, phishing, and number of other security threats while meeting regulatory compliance requirements such as FFIEC Guidance. Global financial institutions such as Bank of America, Deutsche Bank, ING, and HSBC trust and use nProtect security solution.

nProtect was awarded one of the Fastest Growing Companies by Deloitte.

For more information, contact nProtect Inc.

Tel: 408-477-1742

Email: sales@nProtect.com

www.nProtect.com