Gartner Says 15 Per Cent of Businesses Will Adopt Layered Fraud Prevention Techniques by 2014

Analysts to Examine Key Security Issues at the Gartner Security and Risk Management Summit, 19-20 September in London

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By 2014, 15 per cent of organisations will adopt layered fraud prevention techniques for their internal systems to compensate for weaknesses inherent in using only authentication methods, according to Gartner, Inc.

Gartner analysts said no single layer of fraud prevention or authentication is enough to keep determined fraudsters out of enterprise systems. Multiple layers must be employed to defend against today's attacks and those that have yet to appear.

"Malware-based attacks against bank customers and company employees are levying severe reputational and financial damage on their victims. They are fast becoming a prevalent tool for attacking customer and corporate accounts, and stealing sensitive information or funds," said Avivah Litan, vice president and distinguished analyst at Gartner. "Fighting these and future types of attacks requires a layered fraud prevention approach."

Ms Litan explained that while the layered approach to fraud prevention tries to keep the attackers from getting inside in the first place, it also assumes that they will make it in, and that multiple fraud prevention layers are needed to stop the damage once they do. She said that no authentication measure on its own, especially when communicating through a browser, is sufficient to counter today's threats.

Gartner breaks down fraud prevention into five layers:

Layer 1

Layer 1 is endpoint-centric, and involves technologies deployed in the context of users and the endpoints they use. Layer 1 technologies include secure browsing applications or hardware, as well as transaction-signing devices. Transaction-signing devices can be dedicated tokens, telephones, PCs and more. Out-of-band or dedicated hardware-based transaction verification affords stronger security and a higher level of assurance than in-band processes do. The technologies in this layer can be typically deployed faster than those in subsequent layers and go a long way toward defeating malware-based attacks.

Layer 2

Layer 2 is navigation-centric; this monitors and analyses session navigation behaviour and compares it with navigation patterns that are expected on that site, or uses rules that identify abnormal and suspect navigation patterns. It's useful for spotting individual suspect transactions as well as fraud rings. This layer can also generally be deployed faster than those in Layers 3, 4 and 5, and it can be effective in identifying and defeating malware-based attacks.

Layer 3

Layer 3 is user- and account-centric for a specific channel, such as online sales; it monitors and analyses user or account behaviour and associated transactions and identifies anomalous behaviour, using rules or statistical models. It may also use continuously updated profiles of users and accounts, as well as peer groups for comparing transactions and identifying the suspect ones.

Layer 4

Layer 4 is user- and account-centric across multiple channels and products. As with Layer 3, it looks for suspect user or account behaviour, but it also offers the benefit of looking across channels and products and correlating alerts and activities for each user, account or entity.

Layer 5

Layer 5 is entity link analysis. It enables the analysis of relationships among internal and/or external entities and their attributes (for example, users, accounts, account attributes, machines and machine attributes) to detect organized or collusive criminal activities or misuse.

Ms Litan said that, depending on the size and complexity of the end-user institution, implementing the systems that support a layered fraud management framework can take at least three to five years, especially when it comes to the upper layers - Layers 3, 4 and 5. These efforts are continuous, because fraud prevention rules and models require ongoing maintenance, tuning and care.

"Unfortunately, organisations don't have years to wait to introduce fraud prevention while malware-based attacks proliferate. We recommend starting with the first layer of this fraud prevention framework, as well as the second layer, resources permitting, since these can be deployed relatively quickly," said Ms Litan. "Organisations that start by deploying lower levels of the layered stack can help to stave off immediate threats, with the assurance that these layers are part of an overall strategy that relies on basic fraud prevention principles, such as user and account profiling that have generally stood the test of time."

Additional information is available in the Gartner report "The Five Layers of Fraud Prevention and Using Them to Beat Malware." The report is available on Gartner's website at

Additional information is available in the Gartner report "The Five Layers of Fraud Prevention and Using Them to Beat Malware." The report is available on Gartner's website at

Gartner Security & Risk Management Summit

Gartner analysts will provide additional insight into the security and risk management markets at the Gartner Security & Risk Management Summit taking place on 19-20 September in London. The Gartner Security & Risk Management Summit features four programmes focusing on Security, Risk Management and Compliance, Business Continuity Management, and chief information security officer (CISO) roles to deliver detailed, role-specific content and networking. Each programme offers a full agenda of analyst sessions, keynotes, round-table discussions, case studies, workshops and more. Additional information about the London Summit is available at members of the media can register for the Summit by contacting Holly Stevens at

Additional information from the event will be shared on Twitter at, using #GartnerSecurity
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