Researchers at IBM have developed a financial fraud solution known as DEFFEND. Short for Dispersed Financial Fraud Enhanced Detection, DEFFEND sits on top of classical fraud detection solutions. It takes your existing fraud detection to the next level, with personalized protection that is built into your clients’ smartphone devices.
Most of us keep our mobile device within reach, either on us or very close by. Why not use this fact to help verify financial transactions? If you like to travel and shop in new places, classic fraud detection solutions won’t raise an alert if you buy a new coat in Mexico. But if a client’s phone shows that she’s still in New York, DEFFEND allows you to notify her and ask her to verify the transaction.
We examine calls, location, browsing history, installed apps and logs, and more—to understand what is ‘normal’ and what might be suspicious. Your bank doesn’t know where you are every minute of the day, but your phone does!
DEFFEND combines existing, centralized solutions with smartphone-based analytics so that private information is never shared, copied, moved, or exposed.
DEFFEND is different from classic centralized fraud detection systems that verify transactions only at the bank or parent organization level. We complement centralized information and analysis with data on the user’s device to protect privacy.
Think of DEFFEND as a booster shot for your fraud detection system, adding another layer of protection.
With DEFFEND in place, users’ personal data is used only for lawful fraud detection, creating a win-win situation. User information never leaves the smartphone when verifying data.
Legislation and privacy regulations are becoming stricter when it comes to collecting and processing personal data. Most now require the informed consent of individuals to process their data for specific purposes. But IT solutions that can address these privacy issues are still lacking.
DEFFEND automatically deploys the enforcement and audit of privacy policies at multiple levels, while collecting and analyzing data for the purpose of fraud detection.
Users who want to benefit from DEFFEND can opt in, and specify how they permit their data to be used—only if there is advanced suspicion of fraud, only for a limited amount of time, and so forth.