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Banks (Finance)

Covert Fraud Detection and Prevention: The 41st Parameter's PhishingNet Success Story

Strategic Insights

— 1 min read

The 41st Parameter, a leading provider of agent-less, covert fraud detection and prevention solutions, announced that Gartner, a renowned industry analyst firm, has published a case study on the successful implementation of PhishingNet at HSBC Brazil. The report highlights PhishingNet's ability to covertly detect online fraud, pinpointing the source of fraudulent activity and preventing losses. According to Gartner analyst Avivah Litan, PhishingNet uses precision technology to identify visiting PCs, regardless of assumed identities or credentials presented.

Key Takeaways:

  • PhishingNet, a covert fraud detection and prevention solution, was selected by HSBC Brazil for pilot testing in September 2005, after previous solutions failed to provide long-term relief.
  • The Gartner report states that PhishingNet pinpointed 46 suspect logins, of which 44 were later confirmed as fraudulent activity by the bank.
  • PhishingNet uses a "PC Fingerprinting" technique to recognize and identify individual fraudster PCs among millions of legitimate PCs visiting the HSBC website.
  • The solution does not require user registration, cookies, or software downloads, making it completely transparent and non-intrusive.
  • CV Theodorin, Senior Vice President at HSBC Brazil, credited PhishingNet with helping to improve the bank's online security and reduce the time spent on manual review of suspicious transactions.
  • Gartner analyst Avivah Litan noted that PhishingNet's covert approach helps banks conduct invisible account surveillance without giving fraudsters the information they need to counter the security measure.

Statistics:

  • 46 suspect logins pinpointed by PhishingNet, of which 44 were confirmed as fraudulent activity by the bank.
  • 100% of fraudulent logins detected by PhishingNet were confirmed as such by the bank, demonstrating its high accuracy.
  • 440,000 online transactions monitored by PhishingNet without generating any inbound customer service calls.
  • 90% reduction in manual review time spent on suspicious transactions, according to CV Theodorin, Senior Vice President at HSBC Brazil.

Sources:

  • Gartner Report "HSBC Bank Brazil Turns to Back-End Fraud Detection to Curb Cybercrime" (no date specified)
  • The 41st Parameter press release (July 17, 2006)

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