In late september, Santa Clara, Calif.-based antifraud and authentication solutions provider Bharosa introduced the Bharosa Fraud Intelligence Network, an industry cooperative fraud detection network designed to help members attack fraud more proactively.
Although the concept of cooperative fraud fighting is not new, Bharosa CEO Jon Fisher claims his company's approach sets it apart from its counterparts. "Traditional fraud partner networks involve IP or geo-location information sharing," Fisher explains. "Our network is not just about sharing IT data but actual fraud risk modules that are in our system."
According to Fisher, Bharosa takes a "gated approach" to security. The four gates, or steps, include:
1. Analyzing IP and geo-location data for authentication.
2. Determining the kind of authentication to use.
3. Examining the users' experiences -- that is, what they see online, such as the URL.
4. Scoring the associated data, whether historical or in real time.
Sharing in Secret
Each gate, Fisher says, employs a module with real-time fraud analytics. Members anonymously share the results of the analysis with one another, he adds. The models contain data on known fraudulent IP addresses as well as computers. They also contain laboratory-derived simulations of future fraud threats to help businesses stay a step ahead of their attackers, Fisher notes.
"All the members are contributing to the robustness of the network," Fisher continues. "Instead of just sharing the address of a suspect [Web] site, the actual analytics that power these technologies can be shared. Rather than being an alert system, the network is a more-actionable solution. Sharing reactive analytics is not enough -- you need to take things down in real time. The key is to take a proactive approach to fraud."
A Promising Message
Fisher says that he hopes that by working together in groups such as the Bharosa fraud network, standards can be created for the security space. "In accordance with FFIEC guidance, you have a variety of banks racing toward a variety of solutions and philosophies," he relates. "No standards have arisen at the solution or data level. [The network] is a way for banks to get together to find a better way in aggregate rather than individually."