Multi-Factor Authentication and Fraud Detection Technology Combine to Deliver End-To-End Online Fraud Prevention

NEW YORK – January 30, 2006 – Actimize Inc., a leading provider of enterprise technology solutions for fraud prevention and regulatory compliance, today announced the launch of Actimize Online Fraud Prevention 2.0, a second generation online fraud solution combining smart, multi-factor authentication and highly accurate financial fraud detection technology for the first time. This unique approach provides unsurpassed protection from fraud losses while minimizing operational overhead and impact on the banking customer.

Actimize Online Fraud Prevention 2.0 also features an analytical engine that is able to “learn” in real time, making fraud detection evermore accurate as the system is used, and a graphical modeling tool which makes it easy to quickly develop new fraud patterns without any programming. As a result of this industry-leading flexibility, financial institutions can keep pace with constantly changing fraud methods. Online Fraud Prevention 2.0 requires fewer resources to provide accurate detection of all types of online fraud, reducing costs and improving productivity. Among the fraud scenarios included in this solution are account financing fraud, phishing and account takeover, payment fraud, trading fraud, mule accounts and many more.

“As the online channel continues to grow in popularity and use, online fraud prevention is increasingly a priority for financial services institutions,” said David Sosna, Actimize CEO. “The Federal Financial Institutions Examination Council issued guidelines in October 2005 that served to underscore what these institutions already knew — online fraud presents unique challenges and must be addressed not only to prevent monetary losses, but also to prevent erosion of end-user confidence in the online channel and even in the institutions themselves.”

Several top financial institutions have already chosen the Actimize Fraud Prevention solution, stemming losses from these attacks and protecting their customers.

How It Works

When monitoring session activity, Online Fraud Prevention 2.0 builds dynamic authentication and fraud risk scores that incorporate both session and financial information and are updated in real time. As these risk scores increase, the system can invoke multi-factor authentication, using both Knowledge Based Authentication—verifying the identity of the end-user, based on what they know—and One Time Password Authentication —for example, placing a phone call to the account owner—to provide a higher degree of security. The institution can also limit access to accounts based on the risk scores.

This is complemented by Actimize Online Fraud Prevention 2.0’s fraud detection models that provide the highest fraud catch-rate with a small number of alerts. This is critical to keeping operational costs in check and maintaining a positive end-user experience.

For example, a criminal obtains a banking customer’s username and password and uses those credentials to log into an account. The Actimize solution notices that the login took place from a new device, and that such a login is unusual for this account, so it invokes active second factor authentication. This provides an added measure of security and can prevent unauthorized account access. However, user authentication is not relevant in many online fraud cases where the criminal intends to commit fraud yet has a legitimate identity. For this reason, Online Fraud Prevention 2.0 also provides overall financial fraud detection technology that scans all transactions across all channels, identifying potential fraud and creating a critical second layer of security.

“The online channel’s promise of availability, ease-of-use, and low cost can only be sustained if it is also secure,” said Ido Ophir, VP Product Management, Actimize. “Financial institutions are facing tremendous challenges from criminals who are quick to exploit any security weakness, and Actimize Online Fraud Prevention 2.0 is the flexible, comprehensive solution they need today to detect and prevent online fraud.”

Actimize Online Fraud Prevention 2.0 is part of the Actimize Fraud Solution Suite which also includes solutions for ATM Fraud, Check Fraud and Employee Fraud Prevention.

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