Session-based fraud – what is it?

The term “session-based fraud” describes a type of cyber attack that involves taking control of a user’s active session on a website or application to carry out fraudulent activities. Once an attacker has control of a user’s session, they can carry out a range of fraudulent activities, such as making unauthorized transactions, accessing sensitive information, or modifying account settings. Session-based fraud can be difficult to detect, as the attacker uses a legitimate session that appears to be associated with the user.

What types of session-based frauds are most common?

There are several types of session-based fraud that attackers commonly use. Some of the most common include:

  • Man-in-the-middle (MITM) attacks

Attackers intercept communications between a user and a website or application to steal login credentials or other sensitive information. This can occur when a user connects to an unsecured Wi-Fi network or when an attacker uses malware to intercept communications.

  • Cross-site scripting (XSS)

Attackers inject malicious code into a website to hijack a user’s session and carry out fraudulent activities.

  • Cross-site request forgery (CSRF)

Attackers exploit vulnerabilities in a website to trick users into performing actions they did not intend to, such as making unauthorized transactions.

  • Session fixation 

Attackers set the session ID of a user’s session to a value they know in advance, allowing them to hijack the session and carry out fraudulent activities.

Overall, session-based fraud can take many forms, and attackers are constantly developing new techniques to gain access to user accounts and carry out fraudulent activities.

Session-based fraud detection – what to keep an eye on?

Session-based fraud detection is the process of identifying and preventing fraud during a user’s online session. It involves analyzing a user’s behavior, interactions, and transactions to detect suspicious activities that may indicate fraud.

Session-based fraud detection systems use various techniques and technologies, such as:

  • machine learning,
  • behavioral analytics,
  • anomaly detection,

to analyze a user’s session and identify potential fraud.

To detect session-based fraud, these systems can analyze factors such as:

  • user location,
  • device,
  • IP address,
  • login history,
  • transaction history and other behavioral patterns.

They can also use real-time monitoring and alerts to quickly identify and respond to suspicious activity.

Effective session-based fraud detection requires combining technology, data analytics, and human expertise. Nevertheless, online companies can implement session-based fraud detection systems to protect customers’ data and prevent financial losses.

How to prevent session-based fraud

To prevent session-based fraud, companies can implement various security measures such as multi-factor authentication, encryption, firewalls, and intrusion detection systems. They can also monitor user behavior in real-time to detect suspicious activity and take immediate action to reduce the risk of fraud.

Session-based fraud prevention solution should include the following:

  • Real-time tracking: during a session, the system should continuously track user activity and look for unusual behavior.
  • User behavior analysis: it is necessary to look at typical user behavior trends and detect any anomalies, such as sudden changes in device, location, or unusual navigation.
  • Log analysis: to identify fraudulent activity from a specific device, it is helpful to collect and analyze data specific to that device, such as its IP address, operating system, device screen settings, etc.
  • Machine learning algorithms: it is worthwhile to use machine learning algorithms for effective session-based fraud prevention to identify patterns and trends in user behavior and improve the accuracy of fraud identification.

Does Group-IB provide session-based fraud detection and prevention solutions?

Group-IB’s flagship Fraud Protection solution detects, prevents, and fights most types of digital fraud, including session-based fraud, across all digital channels in real-time. The solution analyzes user behavior, which provides an opportunity to detect fraud with unprecedented accuracy while reducing the cost of additional transaction verification.

With machine learning algorithms at its core, Group-IB Fraud Protection can detect fraudulent activities accurately and swiftly. It also allows for stopping fraud attempts before they cause significant damage, which is extremely important in the case of session-based fraud.

Fraud Protection allows its customers to share information about devices that have previously been labeled as fraudulent. If one of these devices tries to join your mobile or web application, Fraud Protection will flag the respective user as having been previously involved in a fraud case. Learn more about Group-IB Fraud Protection on our website.