Behavioral analytics is considered the most effective defense against fraud bots, as it detects the subtle user behavior patterns that automation can’t replicate. But as bots evolve, they are taking on those human-like behaviors, challenging even the most advanced behavioral analytics systems.
Our data scientists looked into how these next-gen bots are evolving, and what it means for financial fraud. Here’s what they learned.
The Problem
Fourth-Gen Fraud Bots Are Learning and Evolving
Most digital financial services have installed a common set of fraud prevention tools. But these standard tools have created a perfect testing ground for generative AI. Bots probe these stacks, find weaknesses, and develop workarounds, overcoming even the best defenses. Early bot detection methods like IP blocklisting, user-agent analysis, and basic behavioral heuristics were effective against earlier generation fraud bots who showed predictable, inhuman patterns. But as detection methods advanced, so did bots, using generative learning to specifically evade these tools.
The rapid evolution from first-gen to today’s fourth-gen bots has made many traditional fraud protection tools ineffective.
The Solution
Behavioral Analytics—But Can it Keep Up with Evolving Bots?
With the rise of sophisticated, human-like bots, traditional behavioral analytics providers face new challenges in weeding out bot vs. genuine human behavior. In order to give NeuroID customers robust protection as bots threats continue to evolve, our data science team performed a detailed analysis of fraud attack data over seven weeks. We came to four primary conclusions:
- Today’s attacks are made up of not just more sophisticated bots but higher bot-volume than ever before. In June 2024, bots led 2x the number of attacks than they did in January 2024. Speed, scale, and sophistication—these next-gen bots are a triple threat. How can you fight back?
- Advanced, fourth-generation bots are far more prevalent than expected. For almost 50% of our customers who encountered bots during the analysis, more than 95% of the bots were next-generation. Are you sure you’re seeing all your bot attacks?
- Fintech and sub-verticals are attracting more bots than ever . . . but every business is a target. While it was previously thought that sophisticated bots targeted only high-profile companies, every NeuroID customer with bot activity over the 7-week study had some form of fourth-generation bots.
- Next-generation detection is critical to keeping up. But what does next-gen bot detection look like if the bots are beating every vendor in your stack? Our report will show you.
Start Reading the Report
*About our Analysis: 7-week window spanning April 24 – June 11, 2024. Included over 55 US Credit Unions, Insurers, Lenders, Credit Card Issuers, Banks, and Fintechs, including Payment Processors, Platforms and Consumer Finance platforms who are current customers of NeuroID with our bot signal in place.