Analyzing user behavior to stop fake accounts

Online account fraud is a big, automated business. NuData Security looks at hundreds of data points to identify malicious login attempts.

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Last week, I talked about the future of user authentication, in particular continuous and seamless user authentication as the way to fight logon and transaction fraud. I mentioned that many companies, including credit card processors, had been doing something similar for decades. One of those processors, Mastercard, offers some of its fraud-detection expertise through NuData Security, which it acquired in 2017.

NuData focuses on stopping malicious automation, account take-over (ATO), new account fraud, interaction fraud, and known-user detection. It accomplishes higher accuracy rates (less user friction and higher fraud detection) using hundreds of individual user attributes and actions. NuData analyzes over 200 billion events annually claims that 40 percent of account events are ranked as high-risk. Not all of those are malicious, but a big percentage of them are.

Where to look for online fraud

Besides fighting to confirm whether a user trying to log on is a legitimate user, every online company has a bunch of other places to check for fraud. These include:

  • Account creation
  • Account authentication changes
  • Account contact information changes
  • High-risk transactions
  • Fraudulent account use
  • Account deletion

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