Guardian Analytics holding financial crimes and fraud prevention event

From Guardian Analytics

If you are a banking executive responsible for fraud operations, risk management, Bank Secrecy Act or anti-money laundering programs, you are invited to attend Guardian Analytics’ financial crimes detection and security event.

Fraud operations, compliance, and information security leaders from nearly 100 banks will share their insights and perspectives on:

  • emerging trends in financial crimes detection
  • customer best practices
  • tools and technology advances
  • managing increased compliance obligation
  • convergence of fraud, AML and Cyber
  • emerging technologies such as Blockchain
  • leveraging powerful behavioral analytics technology to future-proof fraud
  • compliance strategy

The event is Friday, Sept. 29 at Webster Bank in New Britain, Conn.

To join the event, apply here for consideration. http://info.guardiananalytics.com/customer-event-application-2017

Guardian Analytics, which develops behavioral analytics and machine learning solutions for preventing banking and enterprise B2B portal fraud, has asked Forrester Research and Webster Bank to lead the discussions and sessions.

Andras Cser, principal analyst in security & risk at Forrester Research, will discuss emerging trends in financial crime. Kim Syrop, senior vice president of fraud loss & management at Webster Bank will present a compelling case study on her team’s business and technology approach to financial fraud prevention. Syrop will discuss the case study’s results and lessons learned.

“It’s clear that financial fraud is simply evolving too fast for legacy approaches that rely on rules and annual model refreshes to keep pace,” Syrop says. “Cybercriminals are constantly innovating and becoming more sophisticated in attacking the vulnerabilities of our banking system.”

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Guardian Analytics webinar: Machine Learning and Fraud Detection

By John L. Guerra

guardian logo nowGuardian Analytics’ June 28 webinar, “Machine Learning and Behavioral Analytics – The New Frontier in Fraud Detection” – will explain how the new technology helps financial institutions and other organizations combat fraud.

The webinar, which starts at 2 p.m., will explain how machine learning tools can detect and stop complex financial fraud. The webinar follows the launch of Sentinel, Guardian’s new treasury management software solution.

According to the U.S. Treasury Department, fraud costs financial institutions and their customers more than $5 billion each year. Google and Facebook acknowledged in April that fraudsters, using a Business Email Compromise scam, had taken them for more than $100 million over two years. The scam involves fake emails that trick companies into wiring money to accounts controlled by criminals.

Aite Group research director Julie Conroy, the webinar leader, will explain how machine learning can catch bogus emails and other fraud. Aite Group is the research arm of Guardian Analytics.

“High profile fraud attacks that bilk tech savvy companies out of tens of millions of dollars shows the importance of machine learning in fighting financial fraud,” Conroy said.

Guardian Analytics’ Sentinel – which utilizes machine learning – is designed to protect companies from account takeover, business email compromise, fake invoicing, counterfeit purchase orders, and other digital financial scams.

To register, please go here.

 

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Guardian Analytics among attendees at ABA conference

Guardian Analytics press release

guardian logo nowGuardian Analytics, the provider of behavioral analytics and machine learning solutions for preventing banking and enterprise portal fraud, is among the attendees at the ABA Risk Management Conference.

Guardian Analytics will feature their Real-Time Payment Fraud Detection solutions, which offer the industry’s fastest and most accurate technology to detect wire fraud like Business Email Compromise and enable safe rollout of same-day ACH.

In addition, the company will showcase its Omni-Channel Visual Analytics, which gives financial institutions (FIs) unique 360-degree insights into customer fraud risk and behavior, and an unparalleled cross-channel view of criminal activity. With these new solutions, Guardian Analytics delivers the industry’s most advanced fraud prevention and real-time control over fraud risk, company officials said.

“Our Fraud Prevention platform leverages the power of behavioral analytics and machine learning algorithms to detect threats and alert security staff to help prevent fraudulent account activity,” said Boyuan Sun, director Product Management, Guardian Analytics. “ABA Risk Management Conference offers a great venue to discuss recent security threats such as Business Email Compromise (BEC) and to showcase our leadership among the fraud detection space.”

The ABA Risk Management Conference takes place March 26-28 at the JW Marriott Indianapolis in Indianapolis, Indiana. Attendees can contact Stephen Walsh, vice president Global Sales, swalsh@guardiananalytics.com.

 

RSA Conference includes Guardian Analytics, other top security and fraud vendors

Guardian Analytics, a top firm that develops behavioral analytics and machine learning solutions for preventing banking and enterprise portal fraud, are among the attendees of the 2017 RSA Conference.guardian logo now

The conference, which is Feb. 13 -17, at the Moscone Center in San Francisco, sees the top security and risk conference for the industry. Attendees rub elbows with top security leaders and pioneers, hear about new approaches to info security, learn about the latest technology and make contacts that can be invaluable.

Guardian Analytics developers will feature their Real-Time Payment Fraud Detection solutions, which offer the industry’s fastest and most accurate technology to detect wire fraud, Business Email Compromise and enable safe roll-out of same-day ACH.

In addition, the company will showcase its Omni-Channel Visual Analytics, which gives financial institutions unique 360-degree insights into customer fraud risk and behavior, and an unparalleled cross-channel view of criminal activity. With these new solutions, Guardian Analytics delivers the industry’s most advanced fraud prevention and real-time control over fraud risk, Guardian Analytics’ CEO says.

“Our Fraud Prevention platform leverages the power of behavioral analytics and machine learning algorithms to detect threats and alert security staff to help prevent fraudulent account activity,” said Laurent Pacalin, president and CEO of Guardian Analytics. “The RSA Conference offers a great venue to discuss recent security threats such as Business Email Compromise and to showcase our leadership among the fraud detection space.”

Attendees can contact Stephen Walsh, Vice President Global Sales, swalsh@guardiananalytics.com

Other attendees include Cyber Ark, Palo Alto, LockPath, ThreatMetrix, Splunk and many others.

Webinar deals with vendor portal fraud, solutions

From Guardian Analytics press release

guardian logo nowGuardian Analytics, a top developer of behavioral analytics and machine learning solutions for detecting fraud, is holding an executive webinar featuring Aite Group Senior Research Analyst Linda Coven and Luis Rojas, vice president of products at Guardian Analytics.

Coven will share the latest Aite research on vendor portal fraud and offer insights about whether the bank or the corporation is responsible for potential fraud losses.

Rojas will then showcase Guardian Analytics Sentinel, the industry’s first behavioral analytics solution to protect B2B vendor portals from fraud schemes, including account takeover, business email compromise, fake invoices and many others.

The webinar, “Protect Your Enterprise From Financial Crime” is Tuesday, Jan. 24, at 11 a.m. EST.

“Traditional processes for fraud mitigation are no longer sophisticated enough to fight criminals who are now cleverly taking advantage in any way they can,” Coven says. “Corporations should take a deeper look into their fraud detection processes to ensure they have the proper protections in place.”

Guardian Analytics Sentinel offers a machine-to-machine architecture that gives B2B vendor portals the ability to detect anomalous behavior and, in turn, offer step-up authentication, Rojas says.

“With real-time risk scores for each online portal interaction, high risk transactions are automatically quarantined, giving security professionals easy-to-use investigation tools to detect unauthorized access to secure applications,” he says.

Controllers, chief financial officers, vice presidents of treasury and cash management, vice presidents of finance and chief information and security officers concerned with web portal fraud should attend this webinar to learn more about Guardian Analytics Sentinel and how to effectively prevent and detect fraudulent access.

To register, please go here.

Guardian Analytics launches Sentinel for protecting TMOs from Fraud

sentinel art

From Guardian Analytics

Mountain View, Calif. – Guardian Analytics, which develops behavioral analytics and machine learning solutions for detecting banking fraud, recently released its new product, Sentinel, the industry’s first and most advanced behavioral analytics and machine-learning solution. Sentinel protects B2B web portals from account takeover, business email compromise, and many other fraud schemes, company developers said.

Sentinel can detect a wide array of fraud types including: account takeover, business email compromise (BEC), fake invoicing, fake purchase orders and modified wire and ACH templates. Sentinel is the most robust behavioral analytics solution with the highest detection rates and automated hold of high-risk transactions.

“As digital transformation of modern enterprises continues un-abated, Treasury Management departments face significant challenges in deploying payment fraud detection measures, said Laurent Pacalin, Guardian Analytics’ CEO.

“One particularly vexing issue is to ensure that their B2B web portals do not become a security liability,” he said. “Based on a technology and expertise proven with more than 400 financial institutions, this tailored solution protects enterprises whose brand exposes them to black hat fraudsters attempting to penetrate their treasury management systems.”

“As banks have gotten better at detecting fraud, criminals have broadened their attack surface and are now focusing on the relatively unprotected corporates,” said Julie Conroy, research director at Aite Group.

“From business email compromise to fake invoicing, we’re seeing a rising tide of crime targeting corporates. As such, it’s important for these firms to have tools that can protect them from substantial losses.”

Built on an open API, Guardian Analytics Sentinel provides a real-time risk-scoring engine that does not require manual intervention. The “machine-to-machine” architecture allows for deployment as fast as 60 days and is available now with subscription pricing starting at $100,000.

For more information on Guardian Analytics Sentinel, please visit: http://www.GuardianAnalytics.com/Sentinel

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Guardian Analytics and Malauzai partner for mobile banking fraud detection

From Guardian press release

uardian Analytics, well-known for its behavioral analytics solutions for preventing banking fraud, and Malauzai launched a technical partnership that offers Malauzai customers the ability to easily integrate Guardian Analytics fraud detection solutions.

“This partnership further expands the availability of Guardian Analytics fraud detection solutions to banks and credit unions that rely on Malauzai for a native mobile banking experience,” said Luis Rojas, vice president of product management at Guardian Analytics. “We are excited to offer a fully integrated fraud detection solution to prevent and detect mobile banking fraud.”

“We have a continuous track record of innovation that makes us the leader in next-generation mobile banking,” said Steve Reich, chief partnership officer of Malauzai. “Our partnership with Guardian Analytics offers banks and credit unions a superior fraud detection solution while maximizing their unique mobile experience.”

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Fraud will rise now that Same Day ACH hit Sept. 23

By John L. Guerra

Editor, GRC & Fraud Software Journal

Laurent Pacalin, Guardian's new CEO

Laurent Pacalin, Guardian’s new CEO

September will be a revolutionary month for financial institutions – and a great opportunity for fraudsters who target financial institutions and automated clearinghouse transactions.

On Friday, Sept. 23, a new rule from the National Accredited Clearing House Association (NACHA) went into effect that allows same day processing, including hourly payroll, person-to-person (P2P) payments and same-day bill pay.

It is the first of three phase-ins that in the next couple of years will make money from most debit and credit transactions available to customers by 5 p.m. the same day.

The rule change by NACHA, which moves $40 trillion a year through 22 billion transactions for 13,000 financial institutions, will provide same-day transaction processing — while attracting fraudsters to the revenue stream.

Before the change, electronic debit and credit transactions took one to two days to process. The accelerated, same-day system will let financial institutions attract new customers, establish a competitive fee strategy and win new business.

Not only that, but banks can collect a small fee per transaction: Receiving banks will receive 5.2 cents for each ACH transaction processed same day, a new revenue stream that will build quickly as the public adopts Same Day ACH.

Fraud opportunity grows

That 5.2 cents per transaction revenue could be lost in drainage to fraudsters who take advantage of the faster electronic transactions, said Guardian Analytics CEO Laurent Pacalin.

He agreed to sit down with GRC & Fraud Software Journal to discuss how financial institutions can battle fraud once same day ACH comes on line.

With the present 1-2 day transaction timeframe, if the financial institutions or originators notice any anomaly, they can easily stop, cancel, or revert the transaction.

In other words, the slower ACH network provided a time cushion for FI’s to catch suspicious transactions. With same day transaction settlement, that window for discovering fraud shrinks, Pacalin said.

“Just as wire transfers have been popular with fraudsters because of the speed with which they can access the funds and move them out of reach,” Laurent says. “Same day ACH will now provide criminals with this same benefit.”

More ACH files needing to be posted and cleared in a time frame that is being reduced from 2 days to 2 hours will place tremendous pressure on operational processes and staffing.

“The processing times are much shorter with two settlement times each day,” Pacalin said. “The same number of staff have to go through more transactions in a shorter amount of time. There’s a much higher chance of missing fraud.”

ACH fraud typically involves the theft of a customer’s data via malware to facilitate the creation of unauthorized transfers or payment requests.

Most of these payments are then subsequently laundered through “mule accounts” or established accounts that have been created by the criminal.

How fraudsters do it

Fraud experts at Guardian Analytics and elsewhere say criminals take advantage of financial institutions several ways.

They can:

  • Submit large volume of payments just before the cut-off time, forcing financial institutions to rush through the review process. That lets some payments get through undetected
  • Submit payments that are just under the FI’s review threshold so they’re missed by the bank
  • Target other channels or payment types, knowing that FIs may pull resources from those departments to meet ACH deadlines.
  • Employ social engineering techniques against account holders, resulting in payments that look legitimate because they’re coming from the actual account holder.
  • Add recipients to payroll files or change account information for existing recipients within a payroll file, which will be much harder to detect under Same Day ACH time constraints.
  • Compromise third-party senders and submit fraudulent payments into which ODFIs cannot see.

Guardian Analytics: Battling the bad guys

guardian acha graphicGuardian Analytics “leverages machine learning and advanced big data analytics methodologies to assist financial institutions to identify and fight financial transaction crime, with a single technology platform across all channels,” Pacalin said.

The company just released what it says is the industry’s first real-time solution to protect against fraud risk created by Same Day ACH.

Based on the experience of more than 140 Guardian Analytics’ ACH customers, the company designed the ACH Real-time product to meet the demands of Same Day ACH and future faster payments initiatives.

The software-as-a-service solutions – ACH-ODFI Real-time and ACH-RDFI Real-time – intervene by automatically holding high-risk batches for further review, and expediting low-risk batches for further processing.

To view a webinar on the software, go here.

U.S. will see rise in payments fraud

“Same Day ACH will greatly reduce the amount of time in which financial institutions can assess transaction risk,” said Julie Conroy, research director at Aite Group.

“We’ve seen that fraudsters are quick to capitalize on the exposure this creates in other countries that have moved to faster payment processes, and the U.S. will be no exception.”

Guardian Analytics, best known for its behavioral analytics, uses a proprietary algorithm to spot account takeover and other banking fraud based on the behavior associated with a specific account.

The SaaS solution is designed for Chief Risk Officers, Chief Information Security Officers, fraud managers, and payments professionals trying to prepare quickly for the advent of Same Day ACH, Pacalin said.

With Guardian Analytics’ ACH Real-time solutions, banks now have the ability to prioritize their investigations by focusing on the high-risk batches, while automatically releasing the low-risk batches.

That way, the investigations occur in the background, ensuring an uninterrupted of transactions and a positive experience for consumers.

 

Guardian Analytics webinar on Same Day ACH fraud solution

From Guardian Analytics

guardianGuardian Analytics, the market leader in behavioral analytics and machine learning solutions for preventing banking fraud, is holding an executive webinar showcasing the industry’s first solution to prevent against fraud risk associated with Same Day ACH.

Entitled “Reduce Fraud Risk Introduced by Same Day ACH” — the webinar will take place on Thursday morning at 11 a.m. PDT or 2 p.m. EST.

The webinar highlights the company’s newest offerings, ACH-ODFI Real-time and ACH-RDFI Real-time, the industry’s first and only solutions to offer real-time, automated intervention for both originating and receiving financial institutions.

Based on the experience of more than 140 Guardian Analytics’ ACH customers, the company designed the ACH Real-time product to meet the demands of Same Day ACH and future faster payments initiatives.

“Guardian Analytics continues to pave the way for real-time fraud prevention,” said Tony Kaus, Director of Risk & Compliance of The Norman Group.

“With their introduction of real-time ACH fraud prevention, this rounds out the faster payments offering that started with the real-time wire solution and puts them at the forefront of addressing financial institutions’ imperatives to meet market demands.”

Luis Rojas, vice president of Products at Guardian Analytics, will lead the discussion, highlighting the factors driving real-time ACH fraud prevention and the fraud implications surrounding faster payments.

He will then provide a solution overview of Guardian Analytics’ ACH Real-time solutions to highlight how financial institutions can prepare for faster payments, led by the upcoming launch of Same Day ACH.

“The fraud implications of Same Day ACH range from shorter processing windows to reduced time for investigations. As more originators and transactions get processed via Same Day ACH, the opportunity for fraudsters to take advantage increases,” said Rojas.

“With Guardian Analytics’ ACH Real-time, banks now have the ability to prioritize their investigations by focusing on the high-risk batches, while automatically releasing the low-risk batches.”
Chief Risk Officers, Chief Information Security Officers, Fraud Managers, and Payments Professionals concerned with the fraud risk associated with Same Day ACH should attend this webinar to learn how to plan and prepare for this new faster payment initiative. To register, please go here.

Guardian Analytics’ new CEO describes company’s way forward

Laurent Pacalin, Guardian Analytics' new CEO

Laurent Pacalin, Guardian Analytics’ new CEO

CEO, Guardian Analytics

January 2016 – Present

Group Vice President, Oracle

July 2012 – June 2015

Senior Vice President, Saba

September 2010 – September 2011

Senior Vice President, FICO

 

 

 

Achievements:

  • Mr. Pacalin has held award-winning CMO roles while pioneering some of the first enterprise e-Commerce applications on the Web.
  • He is a co-founder and board member emeritus of the Clean Tech Open, the world’s largest accelerator for clean tech startups, helping raise more than $1 billion to reduce global warming and climate change.
  • He holds a master’s degree in electrical engineering from the Swiss Federal Institute of Technology. 

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Guardian Analytics was an early, vocal defender against corporate account takeover when incidents started to surge in 2009. Renowned for its behavioral analytics solutions and omni-channel banking fraud platform, the company brought on a new CEO in February to expand on the corporate vision.

The new talent is enterprise software innovator Laurent Pacalin, former senior vice president at Oracle, Saba and other top companies.

Guardian Analytics felt that Pacalin’s experience in analytics, financial crime and e-Commerce made him the ideal candidate to create the next phase of market and solution expansion.

GRC & Fraud Software Journal interviewed Pacalin this week to get his take on the state of banking fraud and Guardian Analytics’ plans to win more market share.

 

Q: What is required for fraud mitigation and prevention within enterprise banking What are some of the challenges financial institutions face?

A: Enterprise organizations do not have the luxury of handling fraud via human intervention.

At this level, automation, deep learning and big data combine to do the work of many hands. Fraud guidance must be impeccably identified, forensically sound and offered at real-time.

 

Guardian Analytics realizes that the world – and its ocean of data — moves at an increasingly rapid pace. We are the front line that protects enterprise organizations and their clients from increasing attack vectors.”

 

Q: Where do large financial institutions fail when installing fraud mitigation and prevention solutions?

A: Large financial institutions have a more diverse vendor and solutions portfolio  than smaller institutions and are often struggling to obtain a holistic view of Fraud. This is why we have developed Guardian Analytics Visual Analytics, A user interface that presents a 360 view of fraud.  We do that by bringing all alerts , either from our own risk engines or external ones, in one “single pane”.  It makes the investigation job of fraud analysts much easier and much faster.

 

“Laurent’s leadership skills and ability to scale high-growth organizations – combined with a customer-centric approach and passion for innovation – has had an immediate impact on the company’s success.”

~ Skip Glass, Operating Partner at Foundation Capital and Guardian Analytics Board Member

 

The Guardian Analytics Enterprise API addresses the challenges of orchestrating and integrating financial services with the industry’s leading solution providers. The Enterprise API is a comprehensive web services framework that gives financial institutions the ability to access and control data in real-time and allows for a highly flexible real-time intervention of high-risk payments.  It also provides a future-proof abstraction layer that allows the financial institution to scale, and provides robust change management for complex, multi-vendor environments.

 

Q: How does the Guardian Analytics solution meet the unique requirements and business models of enterprise banks?  

guardianA: Guardian Analytics has more than 400 customers in the United States including many regional and super regional banks. Our solid foundation of machine learning and extensive expertise with financial services and behavioral analytics allow us to understand banking operations, customer behavior and how to detect fraudulent activity at the atomic level. This level of experience has proven our leadership within the space.

 

Q: How has your vision for the company changed/improved Guardian Analytics’ approach to product development? Is there a push for a new niche in banking?

A: Guardian Analytics is now focused on delivering a tailored offering for Enterprise Banks.

We’ve announced the Guardian Analytics Fraud Prevention Platform for Enterprise Banks which includes Omni-Channel Visual Analytics and an Integrated Risk Database offering a seamless and flexible way to add external data sources to our risk models.

The Guardian Analytics Wire solution, a real-time wire intervention solution — has seen extreme success with mitigating fraud losses due to the Business Email Compromise (BEC) scam.

The momentum behind our wire solution illustrates the need for flexible and easy to deploy solutions to protect against the rise of BEC and other fraudulent wire-related transfers. Guardian Analytics is uniquely positioned to become the most trusted fraud prevention enterprise platform of choice for real-time payments.

 

Q: What kind of integration/human consultant services or solutions does Guardian Analytics bring with its platform? 

laurent2A: Guardian Analytics offers professional services resources, as well as partners like The Norman Group who are specialized in payment fraud and cyber security.

Our highly experienced consultants assist our customers to derive a very high return on their fraud protection investment while keeping the trust of their own customers.

Additionally, Guardian Analytics offers certification courses for Fraud Analysts and in-house managed services for Guardian Analytics customers.

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