Velocity checks definition
Velocity checks are a security and fraud prevention technique that tracks the frequency of specific transactions or activities within a system. If the frequency goes above a predefined threshold, an alert is triggered, or the system blocks further actions.
See also: anti-fraud system, brute-force attack, salami fraud, machine learning
Velocity check examples
- Credit card purchases. Someone tries to make five large purchases within ten minutes with the same credit card across different online shops. A velocity check can flag this as suspicious, possibly indicating a stolen card.
- Account logins. 50 login attempts are made on a single account in five minutes. A velocity check can block further attempts, presuming it's a brute-force attack.
- Money transfers. An individual tries to make multiple high-value transfers to various bank accounts. A velocity check can stop the transactions, suspecting fraud or money laundering.
Use cases for velocity checks
- Banking and finance. Watching for multiple transactions within a short time frame to prevent unauthorized access or fraud.
- E-commerce. Tracking frequent purchases or logins from one user or IP address to spot potential fraud or account takeover.
- Website security. Identifying rapid-fire login attempts, signaling a potential brute-force attack.
- Telecommunications. Observing high-frequency call patterns that hint at SIM card cloning or other fraud.
- Online gaming. Preventing bot-driven activities by monitoring the rate of specific in-game actions.
