Spotware introduces cAntifraud to tackle trading fraud
Spotware Systems is introducing cAntifraud, an AI-powered fraud detection solution. It will help brokers and prop firms identify suspicious trading activity before it causes financial losses. The solution blends early behavioural detection, cross-firm analysis and financial risk assessment. It strives to keep fraud rates below 0.08% of turnover and help companies reduce payment disputes and reputational damage.
Early Detection
Brokers and prop firms often identify potential violations during payout reviews. By then, clients may already be waiting for their funds. Delaying payments can lead to disputes, negative feedback and additional pressure on risk and support teams. Detecting sophisticated fraud schemes can be even more difficult. These may involve multiple accounts, coordinated trading, third-party account management or activity spread across several companies.
cAntifraud monitors risks from the beginning of the client relationship. It evaluates risk signals during onboarding, including initial KYC checks, and keeps monitoring trading activity afterwards. Its AI analyses trading patterns, execution timing, connections between accounts and signs of coordinated activity. It helps risk teams distinguish potentially abusive behaviour from legitimate trading.
Cross-Firm Intelligence
One of cAntifraud's prime features is its ability to identify suspicious connections on different brokers and prop firms. Participating companies share intelligence through a common network. When the system detects a potential threat, it immediately notifies other participants.
The network exchanges encrypted and anonymised data and complies with GDPR requirements. Each company retains control over its own data and cannot access another participant's client information. The shared intelligence grows as more brokers and prop firms join the network. It improves the system's ability to identify suspicious connections and recurring fraud patterns that individual companies might otherwise miss.
Financial Risk Assessment
cAntifraud also helps companies estimate the potential financial impact of trading abuse. Its assessment tools cover estimated payout exposure and trader risk evaluation. It lets brokers and prop firms prioritise investigations based on their potential financial impact. The system can flag suspicious activity within 15 minutes, giving companies an opportunity to respond before they face financial losses.
Risks Covered
The solution addresses multiple trading abuse types faced by FX/CFD brokers and prop firms. For FX/CFD brokers, it targets IB commission abuse, latency arbitrage, coordinated trading, multi-accounting, copy trading abuse, cross-broker hedging and the exploitation of bonus or zero-balance protection mechanisms.
For prop firms, it works on challenge farming, external hedging, multi-accounting, latency arbitrage and trading rule violations. Its automated rule monitoring can flag potential violations during trading. It reduces the need for firms to depend entirely on manual checks before approving payouts.
cAntifraud does not automatically block traders or decide whether to approve payouts. Instead, it provides evidence that helps companies make informed decisions. It identifies abusive behaviour rather than treating profitable trading by legitimate traders as suspicious.
Standalone and Platform-Agnostic Solution
cAntifraud supports cTrader, MT5 and other major trading platforms, liquidity bridges and CRMs through a universal API. Companies may integrate it with their current risk control systems without replacing their infrastructure. The solution can operate independently or with cBridge, Spotware's fixed-price liquidity bridge.
About Spotware
Spotware Systems is a technology provider offering financial trading solutions. The company brings cTrader — a complete FX and CFD trading platform. Spotware creates innovative and transparent trading solutions. They have a "Traders First™" approach and prioritize the traders' needs and interests.
Wrapping Up
Spotware strives to help brokers and prop firms detect trading abuse earlier, identify fraud networks and assess probable financial risks. Its AI-powered monitoring and shared intelligence network provide additional information for risk teams and let firms make their own decisions about suspicious trading activity.
Register your company now and get featured on our homepage!