Fraud prevention company SpyCloud has debuted a new product that aims to use API data and a number of inputs to determine a risk score for users worried about their information being exposed to bad actors.
The program is called SpyCloud Identity Risk Engine and is fueled by recaptured data the SpyCloud team has compiled from breaches, malware infections and other crime scene sources, the company announced on Tuesday, January 18.
Pattie Dillon, product manager of anti-fraud solutions at SpyCloud, said the company’s work on the product was motivated by what they saw as holes in other fraud detection softwares’ insights.
These oversights then “enable criminals to evade detection and perpetrate account takeovers, identity theft and new account fraud, or construct synthetic identities,” said Dillon.
Other softwares on the market try to identify potential opportunities for fraud and identity theft via gathered statistics such as behavioral analytics, historical data and geolocations, strategies that SpyCloud’s new program also incorporates.
However, through the assessment of hacks that have already occurred, SpyCloud’s recaptured breached data approach attempts to go one step further. It intends to use this new approach to diagnose whether a customer is a low-risk user or an at-risk user who may be the victim of a fraud attack.
Trace Fooshee, a strategic advisor in Aite-Novarica’s Fraud & AML practice, attests that online fraud is both increasing rapidly over time and becoming more difficult to predict and detect.
Fooshee believes that SpyCloud Identity Risk Engine is especially well prepared to detect and combat fraud due to its “capacity to incorporate their proprietary data sources of exposed credentials and identities into their risk models.”
In October 2021, SpyCloud conducted and released a survey regarding ransomware and fraud. It found that 72 percent of its 250 respondents, who came from organizations ranging from 500-25,000 employees, reported ransomware attacks within the last year.
Also among the study’s findings however was that there was a “misplaced confidence that defenses never fail or that paying a ransom after an attack will always work,” according to SpyCloud co-founder and CEO Ted Ross.
