VIP Fraud Detection Service Stock Trading Module

Problem: Pump and Dump Erodes Confidence

The speed and convenience of global online trading has created a rise in Pump and Dump scams. Thieves purchase low-price, low-trade volume stocks with their own accounts, then pump up the price by purchasing the same penny stocks from hijacked accounts. The increase in trading volume causes an artificial increase in share price. The criminals then dump the stock, pocketing the profit and leaving legitimate stock traders with the loss. Damage ranges from a few hundred thousand to millions of dollars. To prevent fraud and protect their reputation without eliminating penny stock trades, brokerages need early warning and fast response to suspicious behaviour.

Solution: VIP Fraud Detection Service Stock Trading Module

The VeriSign® Identity Protection (VIP) Fraud Detection Service (FDS) Stock Trading Module has the power to evaluate and analyse thousands of stock trade transactions per second to help prevent Pump and Dump scams without affecting the user experience. When the risk score generated in real time exceeds your threshold, an internal alert can be sent or the execution of the trade may be stopped and additional authentication be required. Predetermined authentication methods may include phone, one-time password, SMS or email. Fraud investigation and management tools provide sophisticated analysis to efficiently resolve scams.

The VIP FDS Stock Trading Module uses unique, customisable models based on multiple factors to determine the risk for each type of transaction.

• Stock-based detection flags the risk for shares that are more susceptible to Pump and Dump stock trading scams.
• Trade-based detection looks for known indicators of a typical Pump and Dump transaction such as suspicious trading sequences and trade and balance ratios.
• User behaviour-based detection compares past trading transactions with current activity to detect anomalies.
• Network-based detection identifies activity trends across accounts to alert you ton suspicious behaviours across multiple accounts or multiple suspicious individual transactions on a single account.

Whether added "off the shelf" to your VIP Fraud Detection Service or tailored to your business needs*, the VIP FDS Stock Trading Module provides a layered approach to fraud prevention with one log-in for you to view activities across multiple channels.
*Customisation service offered separately.

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