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Press Release: Market Guide Outlines Best Practices for Online Fraud Detection

New Levels of Integration and Multiple Layers of Protection to Combat Online Fraud

 

 VANCOUVER, British Columbia – Aug. 5, 2014 – In a new Market Guide, leading analyst firm Gartner recommends a new approach to online fraud detection.

NEWS FACTS:

  • The online fraud detection market has substantially transformed in the past two years, trying to keep pace with rapid advances and expansions in cybercrime. This Market Guide will help fraud managers navigate this amorphous space so they can make “rightsize” fraud detection purchasing decisions.
  • By 2017, passive biometric analysis will become a standard feature of at least 30% of one-stop fraud detection solutions — up from less than 1% today.
  • This OFD Market Guide replaces Gartner’s “Magic Quadrant for Web Fraud Detection,” reflecting the fragmentation, consolidation and expansion of the OFD market.

KEY GARTNER RECOMMENDATIONS IN SELECTING AN OFD SOLUTION INCLUDE:

o   Recommendation 1: “The ultimate goal of OFD is: continuous behavioral profiling of users, accounts and channels.” o   Recommendation 2 for Fraud managers: “Use a layered approach to detect online fraud in order to increase your chances of beating the fraudster.” o   Recommendation 3 for Fraud Managers: “Give priority to vendors that provide multiple layers of protection, users and account profiling, and behavioral analytics.”

  • NuData Security is cited or listed or recognized as a “Representative Vendor” amongst several OFD vendors. 

NUDATA SECURITY CAPABILITIES:

  • NuData Security’s software predicts and prevents fraud and malicious behavior for the e-commerce, financial services, digital goods, online marketplace and gaming industries.
  • NuData Security uses behavioral analysis to prevent fraud online, protecting businesses from brand damage and financial loss caused by fraudulent or malicious acts.
  • NuDetect, NuData Security’s comprehensive-behavior analytics platform, includes the following capabilities:

o   Continuous behavior monitoring of users and accounts: NuData Security continuously monitors users and accounts through their entire lifecycle across multiple channels including: desktop and mobile web, mobile apps and call centers.

o   Layered Approach: NuData Security has capabilities across all three layers of fraud detection prescribed in the Gartner 2014 Market Guide (Endpoint, Navigation, User & Account). In addition, it also supports cross channel analysis, big data analytics and entity linking across its non-PII data network.

o   Multiple Layers of Protection: NuDetect spans all five layers of fraud detection. Its non-PII data network analyzes over a billion events per month, linking entities and relationships through behavioral metrics, device identity, IP address and email address. Its tightly integrated model allows each layer of fraud detection to communicate with the others, identifying behavior and relationships that aren’t visible when considering each layer independently.

SUPPORTING QUOTES:

Christopher Bailey, CTO, NuData Security, said:

  • “The global threat environment is rapidly changing. Individual point solutions for fraud prevention fail to deliver the visibility needed to protect businesses from threats posed by an increasingly complex world of cybercrime. Our team is dedicated to delivering a solution that predicts fraud and malicious behavior earlier, more accurately and faster than any other solution in the world. I believe that the secret to our success has been our approach, and feel that the research from Gartner provides a comprehensive and independent confirmation that our unique approach is the expert recommended standard.”

According to Gartner research:

  • “Innovation in fraud prevention methods is imperative because thieves are increasingly circumventing old techniques, such as device identification.”

Gartner, Magic Quadrant for Web Fraud Detection, Avivah Litan and Peter Firstbrook, 30 May 2013

  • “The ultimate goal of OFD is: continuous behavioral profiling of users, accounts and entities across online channels. Use a layered approach to detect online fraud in order to increase your chances of beating the fraudsters. Give priority to vendors that provide multiple layers of protection, users and/or account profiling and behavioral analytics.”

Gartner, Market Guide for Online Fraud Detection, Avivah Litan, 2 June 2014

  • “Continually monitor and analyze user behavior, as soon as a relationship with an individual begins until it ends, because the life circumstances of the individual may change, or the identity may have been bad to start with.”

Gartner, Identity Proofing Revisited as Data Confidentiality Dies, Avivah Litan, 12 December 2013

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

 

  About NuData Security

NuData Security predicts and prevents online fraud, protecting businesses from brand damage and financial loss caused by fraudulent or malicious attacks. NuData Security analyzes and scores billions of users per year and services some of the largest ecommerce and Web properties around the globe. Additional information is available at: https://nudatasecurity.com/

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