ThetaRay: Advanced Data Analytics Provide an Enhanced Security Layer to Combat Bank Fraud and Cybercrime
“The key issue is that the banking industry’s traditional fraud detection methods do not work anymore, because most of today’s fraud schemes are extremely sophisticated and take place online,” remarks Mark Gazit, CEO of ThetaRay.
In addition, financial organizations are generating massive amounts of data, and the inability to navigate through it renders them helpless in identifying and stopping new types of threats. ThetaRay is able to recognize anomalies and stop threats in their tracks.
The company was founded by renowned mathematicians Ronald Coifman and Amir Averbuch, who had spent 15 years developing algorithms that analyze large amounts of data— rapidly, and with no need to understand its context. “Instead of hunting viruses, our technology looks for undetected anomalies in everyday processes,” says Gazit.
ThetaRay’s hyper-dimensional multi-domain big data analytics enable organizations to fuse and analyze vast amounts of heterogeneous data from diverse sources like network and ICS/SCADA traffic, machine data, financial transactions, and database records in real time. “This holistic, all-seeing technology provides automatic, unsupervised, real time discovery of threats and risks that are not detected by existing rule-based solutions,” extols Gazit.
The analysis of all sources happens in parallel, without the need for any semantic or contextual understanding, predetermined patterns, rules, or other known elements. Gazit adds, “ThetaRay’s holistic, omniscient analytics security layer delivers industry-leading detection rates with extremely low false positive levels.”
The solutions’ key functionalities include data processing, data integrity and storage, anomaly detection, event generation, alert distribution, event investigation, automated reporting and case management.
ThetaRay’s holistic, omniscient analytics security layer delivers industry-leading detection rates with extremely low false positive levels
The analytics platform enables clients to collect data from multiple domains, and treat each parameter of the domain as a new dimension. In one instance, the company’s client was under Chapter 11, a bankruptcy code that protects a failing business from its creditors but does not allow any movement of money. During this period, the CEO of the client company illegitimately transferred money from the organization to his personal account. ThetaRay’s breakthrough technology uncovered the fraud using real-time analysis of registrar information and the Chamber of Commerce database that was fed by twenty different data sources. “No other system could have identified it instantaneously,” exclaims Gazit. This allowed the client to uncover fraud quickly, saving the organization from any financial damages.
ThetaRay’s product suite also includes solutions for fraud detection and money laundering. The company’s e-fraud detection technology enables financial managers to detect online fraud such as massive attacks that penetrate the management and control networks of ATMs, making them distribute large amounts of money. Additionally, ThetaRay’s anti-money laundering (AML) solution helps identify anomalous patterns of behavior that suggest money-laundering activities are taking place, allowing banks to intercept the crime in its initial phases.
ThetaRay’s solutions are designed to be industry-agnostic. “We currently focus on the financial and industrial sectors, but we can do much more,” says Gazit. “In the industrial world, we deal with the safety of machines.” Furthermore, the company will provide solutions for sectors such as credit risk, insurance, and aviation. “We are looking forward to expanding our relationships with leading enterprises by developing analytic solutions for multiple parts of their business,” concludes Gazit.