IBM Security looks to clamp down on bank account fraud

IBM has revealed its plans to help banks stop cyber-fraud with a new service aimed at minimising the threats from criminals opening fake accounts.

The company's IBM Security arm has launched a new service aimed at helping banks better spot and shut down fraudulent accounts set up by cybercriminals to carry out identity fraud scams.

Part of the IBM Security Trusteer service, the company's New Account Fraud (NAF) tool uses machine learning to quickly identify legitimate users, and spot fake ones, using the information they have provided when setting up a new account.

IBM says that $112 billion has been fraudulently stolen from banks using NAF in the last six years - equivalent to around $35,600 every minute, alongside realms of customer data such as names, addresses, passwords and more, which are sold on to criminals to create fake accounts.

With this type of personal information being commonly revealed in major data breaches, criminals are increasingly using these details to set up new accounts using fake identities, which as more and more people bank online rather than in a branch, makes it harder for institutions to spot fraud.

IBM's service uses behavioural analytics to help verify legitimate users and spot potential fraud patterns, and can be easily added into a bank's existing protection service when it launches soon.