New fraud protections for banks

New fraud protections for banks

MessageLabs is planning to release a new fraud protection service in the Asia Pacific that aims to help financial institutions, retailers and other e-commerce businesses fight off online identify fraud through the phishing email scams.

The service features real-time scanning, expert analysis and authentication, incident response and early notification of suspicious email activity. The company uses Skeptic Radar - built on proprietary, multi-patented technology - to scan 32 million messages a day from around the world and detect threats and anomalies.

When the scam is identified, analysed and authenticated, the company notifies the targeted company and provides details of the attack. Companies are then able to work with law enforcement agencies to quickly and effectively shut down scammers.

MessageLabs' Technical Director of the Asia Pacific, David Banes, said: "We have successfully detected and helped prevent attempted fraud at more than 15 banks and other financial institutions globally, including three in Australia, several in the UK and one of the largest in America. In many cases, MessageLabs alerted in-house IT staff to the problem before they know of its existence."

He added that MessageLabs' Sydney-based technical team has refined the Fraud Protection service over recent weeks, which has involved informally alerting major institutions at risk, and working with local law enforcement agencies to help shut down websites associated with scams.

The company has now developed its real-time detection technology to a level where it can be offered to a wider market.

MessageLabs believes that the Fraud Protection Service is the next logical step in helping to protect companies against new and evolving types of email security threats:Mark Sunner, Chief Technology Officer at MessageLabs said: "E-commerce has grown fivefold since 1999. Internet spending alone totalled $100 billion in 2003. It's taken years for consumers to gain confidence in online banking, bill paying and e-commerce; phishing scams could slow this growth substantially unless businesses take additional steps to protect their customers."

"Unfortunately, in spite of securing their sites, adopting best practices and proactively warning customers against new types of fraud, consumers and businesses are still falling victim and suffering losses."

In America, the Federal Deposit Insurance Corp., the national insurer of U.S. bank accounts, has warned Americans of a new convincing email scam that has been doing the rounds.

This scam informs people that their bank account has been denied insurance under the USA Patriot Act, which was passed after September 11th to provider broader powers for combating terrorism.

The letter states that recipients should confirm their personal information or their account will lose its protection.

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