Get started with fraud detection

Ironchip fraud detection (Location-Based AntiFraud) analyzes millions of transactions and issues fraud alerts to institutions in real time, reducing the financial and reputational impact that fraud can have on large organizations.

For each analyzed operation it returns three scores, each with a value between 0 and 100:

• Biometrics: the user performed the operation on a device with the correct biometrics parameter.
• Device: the user performed the operation from a device with previously registered characteristics.
• Location: the user performed the operation from one of their safe zones.

Benefits

Secure location

Ironchip fraud detection uses secure location, a location that cannot be forged, unlike GPS coordinates or IP geolocation, which is vulnerable to IP spoofing attacks and to connections through proxies and private VPNs.

Anonymous location

Ironchip fraud detection does not base its fraud detection on coordinates that can be placed on a map. With Location-Based Security technology, all user locations are anonymous and known only to the users themselves, because only the radio waves around the device are used. This makes it possible to certify whether a user is in a typical area without breaking GDPR rules or invading users’ privacy.

Real-time fraud detection

Ironchip fraud detection helps detect fraud in real time, so you can block or release transactions before it is too late. Location also helps eliminate false positives: users often make mistakes that can be flagged as fraud when they are not, and knowing that they operate from one of their typical places is decisive evidence.

Transparent security for your users

Ironchip provides a layer that integrates into any application and requires no interaction from users. It helps reduce transaction fraud without users changing the way they normally interact with your application.

How it works

When a user accesses a service, the location they accessed it from is recorded. This reveals the typical places from which the user operates.

This makes it possible to determine whether a transaction was made from one of the user’s typical places, removing friction when the place is known and increasing security when it is not.

The solution is built on a microservices architecture that is adaptable, scalable, and fault tolerant. It has two main microservices: Location-Based Security and Location-Based AntiFraud Backend.

Location-Based Security is a widely used Ironchip microservice and is the home of Ironchip Location AI. Ironchip AI can detect whether two customer locations are the same, making it impossible for a cyber attacker to spoof the detected location.

The Location-Based AntiFraud backend stores the devices used in the transactions it processes. Each customer can have more than one device allowed to operate securely. If a device is compromised, the backend can detect the hijacking attempt. The API supports different queries based on a user identifier and, for each analyzed operation, returns the three scores (biometrics, device, and location) described at the beginning of this page.

Ironchip fraud detection introduces a new concept, the safe zone. A safe zone is an area from which the customer usually operates. A fraudulent operation tends to take place far from safe zones. This dimension is added to fraud detection systems without violating customer privacy, because the system does not allow reverse geolocation.

The safe zone concept is also complemented by the Ironchip device recognition system, which assigns a fingerprint linked to a unique, anonymous device.