Despite your expectations I’m going to support that cheesy header with a real talk! Fraudsters will hate you.
We have this site with classified ads in Ukraine, OLX and it is completely plagued with spam and fraud. I create an ad to sell something I don’t need anymore, and within a couple of hours I have some stupid fraud in my inbox. What baffles me is that it’s very easy and simple to fix, and they do nothing.
Back in 2006 I was involved in one of the forks of an open source project L2J (so-called “server emulator”), which was a re-creation of the server part of then-popular game Lineage II of MMORPG genre.
A lot of the servers were plagued with bots (official servers too). There were two variants for the bot software — a standalone one that communicated with a server on its own, and another one that controlled an interface of an actual client (in-game bot).
In-game bot required much more resources to run (basically, a separate computer per bot), so the majority of the problems were created by standalones, you could easily run ten of them from a regular computer.
We discussed this problem in a developer chat and had an idea — maybe these standalone bots have some differences while talking to the server? We tried to investigate that and indeed, the order of packets was completely different between a standalone bot and a regular game client.
It was straightforward to detect and reject bots on connect, but then it would be too obvious. So we started detecting them on connect, and disconnecting and banning after some random time online, like 2..5 minutes.
Of course, generally bot developers aimed at official servers and couldn’t care less about some anti-bot defense on free emulator servers, so we didn’t spend too much brain activity on it. Nevertheless, it was committed into the Subversion repository with a completely unsuspicious “small fix” message (open source!).
It sounds a lot like security by obscurity, as I’m writing it now. I am not an anti-fraud expert, however, it looks like it really is — we need to detect some suspicious activities, and then stop them in a way that doesn’t immediately tell fraudsters about it. Why? To make “debugging” around our defense a much harder problem.
For example, if we needed to do better with those bots, one way to go was to keep track of a cumulative bot time on a player’s account in a database and ban it some time into the future. Maybe an hour or two, maybe a day, or even a week.
There is also a technique called “shadow ban”, that’s sometimes used on forums. For a shadowbanned person everything looks the same, they can view everything and post comments, just their responses are not visible to anyone else (except moderators), so they’re not causing a stir on a forum, and do not launch attacks onto it from other places, because they do not perceive it as an attack on them.
We could have employed something akin to a shadow ban. Stop bots from interacting with other users from time to time. Drop their packets a lot when they’re in a battlefield, so they and their party-members end up being killed by mobs.
I don’t think it’s always possible to employ these delayed responses — anything financial and we’re out of luck? I’m not familiar with that field, never worked at a bank or a payment processor. Would be interesting to learn a bit about that.
So, back to classified ads. They could raise their defenses a bit, and with a clever shadow ban technique (mark messages as read when a recipient logs in, etc) it would eliminate a lot of the fraudulent activity from the platform.
If a fraudster tries this and tries that and there is no apparent benefit and it seems like everything works, but people just don’t fall for a scam — will they continue to try more and more sophisticated attacks? To a certain extent, later they’ll get bored with having no results.
We also need good anomaly detection mechanisms. It starts with good logging and monitoring, and with user complaints, just like any other performance problem or a bug. Of course, later you can start to employ different machine learning techniques, but it shouldn’t be the first step, and you need to do it really carefully.
It’s very maddening for legit users to fall prey to some stupid algorithm that can be hard to fix. Gather more cases and re-train a model? Maybe employ heuristics to fix some corner-cases? In any case, a model's decision should be overridable by moderators.
Sometimes people will pierce through your defenses anyway, so you’ll have to react quickly, identify new patterns, shadow ban them, etc.
Sometimes it can be fixed by a product change. For example, if there is some kind of bonus system, make it so users can spend bonuses only on themselves, ship products paid with bonuses to the existing address only (that has a history of successful deliveries from a given account), etc.
Removing an incentive to fraud is the best strategy.
After running a service for some time you’ll get a grip on how these things are done.
Even Twitter seemingly managed to remove that Bitcoin “ElonMuskque giveaways”. What took them so long I don’t understand, but if even Twitter did it — you can do it too.
Just do it.