Undercover with "The Fraudfather"

Many people with a lot to say about online fraud aren't actually security experts. They're marketers. Today we leave the marketers behind and speak to a genuine online security innovator: Ori Eisen, the godfather of online fraud prevention.

He got his start as an intelligence analyst with the Israeli Defense Force, after which he signed with VeriSign, at the dawn of the e-commerce age. Online fraud was rampant.

Eisen went on the offensive, implementing never-before-seen software and best practices that cut fraud at VeriSign by 85% in 90 days. From there he went to American Express, where he again shut the door on the bulk of online fraud.

In the process, Eisen developed a security model dubbed "the 41st parameter," which operates unlike any anti-malware app you've ever seen. In fact, even systems that have no anti-malware software installed cannot compromise a bank or online store that's managing all 41 parameters.

With holiday cash registers ringing up a record number of fraudulent sales, the timing couldn't be better to talk with Ori Eisen, "the Fraudfather," about the state of Internet security. We didn't cover the usual ground, so don't expect to hear the typical dog and pony discussion about phishing, ID theft, and evildoers.

Rather, Eisen talks about how fundamental flaws in the Internet's design encourage fraud, and why all countermeasures have failed to stamp out fraud. He also discusses a credible doomsday scenario for 2008, which he says is already unfolding.

Lastly, I give him an opportunity to explain his "41st parameter" approach. Decide for yourself if Eisen's technique is a pie-in-the-sky solution, or the best idea yet for combating online fraud.



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