ArcSight has announced the launch of its FraudView appliance that aids in detecting and preventing financial fraud.
The company claimed that unlike legacy fraud prevention technologies, ArcSight FraudView can correlate activity across multiple banking channels to aid in the detection of sophisticated fraud schemes that span online, ATM, telephone and bank branch activity. It connects multiple pieces of transaction and account information to evaluate the risk of a financial transaction as it occurs.
It collects information and then applies three types of analysis to detect fraud. Pattern recognition discovers statistically significant activity patterns that are linked to fraudulent or suspicious transactions that automatically creates new detection rules based on patterns found in order to block new fraud events or flag suspicious events for further review.
It also uses fraud-focused correlation by generating a transaction risk score based on correlating across multiple risk areas, including device, account, transaction and destination risk. Finally it can aggregate the results of multiple risk rules to flag a particular account for closer observation with ‘automatic account escalation'.
Adel Melek, partner at Deloitte & Touche, said: “As the amount of money flowing through online transactions rises, online criminals are becoming more aggressive and more sophisticated. To ensure trust in cyber transactions, organisations, especially banks and financial institutions, require effective, holistic and sophisticated monitoring controls for detecting and responding to online fraud."
Reed Henry, senior vice president of marketing, ArcSight, said: “We are seeing the rise and growth in sophistication of threats to sensitive financial information, infrastructure and operations. Organisations need advanced technology available to head off potential risk.
“ArcSight FraudView is already being used to detect wire fraud in wholesale banks and ‘pump and dump' stock schemes in retail brokerages. In these cases, the combination of multiple bits of information into a single risk score provided by ArcSight FraudView aids the institution in preventing a fraudulent transaction from occurring.”