Bots & Fake Accounts: Threats to Trust in Trading

Bots manipulating binary options trading platforms pose a serious threat. Here's how fraudsters exploit trading systems:

• Automated Trading Bots: Fraudsters use automated trading bots to place a large number of trades in quick succession, exploiting pricing discrepancies and market inefficiencies to gain an unfair advantage.
• Latency Arbitrage: Bots take advantage of latency in the trading platform’s data feed to execute trades at outdated prices. This allows them to profit from the difference between the actual market price and the delay on the platform.

Fraudsters also create fake accounts at scale using malicious tools like emulators. They use these accounts for synchronized trading, with bots coordinating trades to create artificial demand or supply for a particular asset. This manipulation influences the asset’s price, allowing fraudsters to profit from the resulting market movements. Additionally, fake accounts are also used to exploit sign-up bonuses, referral bonuses, and promotional offers, draining the platform's resources.

Home Broker leverages SHIELD’s Device-First Fraud Intelligence to combat these attacks. SHIELD’s Device ID uniquely identifies every physical device on Home Broker’s platform. Equipped with this intelligence, Home Broker’s teams are able to identify when fraudsters are controlling multiple accounts, stopping coordinated trades and pump and dump schemes.  

Combined with SHIELD’s Fraud Intelligence, Home Broker is able to continuously monitor every device session, detecting in real time when the use of tools like emulators and bots - frequently used to manipulate markets. 

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Account Takeover Undermines The Safety of Binary Options Trading Platforms  

Account takeover (ATO) attacks are another major threat to trading platforms. Once fraudsters gain access to users’ accounts, they can make unauthorized trades, potentially leading to significant financial losses for the account owner. They can also withdraw funds, draining the victim’s account.

Home Broker leverages SHIELD’s Device Intelligence to prevent Account Takeover (ATO) attacks before they occur. The solution detects multiple login attempts on a single account and flags suspicious activity, such as access from unfamiliar devices. If a customer logs in from different locations using unfamiliar devices, it’s a strong indicator of an ATO attempt.

Shielding the Future of Trading 

SHIELD helps the Home Broker team ensure a trustworthy and fair ecosystem for all users, eliminating bot activity and fake accounts used by fraudsters to manipulate trades and gain unfair advantages. ATO attempts are also identified and stopped before they happen, ensuring a safe environment for all users.

Powered with cutting-edge device fingerprinting and the latest in AI & machine learning algorithms, our solution empowers the Home Broker team to detect and respond to suspicious patterns in real time, staying ahead of fraudsters.

“The real-time signals provided by SHIELD have been instrumental in detecting and eliminating fraudsters. This has empowered us to drastically reduce bot activity and prevent account takeovers”, said the CEO of Home Broker.

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