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#RSP16
Are	Bot	Operators	Eating	Your	
Lunch?
SPONSORED BY:
#RSP16
Follow	this	event	on	LinkedIn	&	Twitter
#RSP16
Retail	Touchpoints:	@RTouchPoints
Adam	Blair:	@adamblair29	
Hayneedle:	@hayneedle
Brian	Gress:	@BrianGress
Distil	Networks:	@distil
Rami	Essaid:	@ramiessaid
#RSP16
Join	the	
conversation
#RSP16
Submit	your	
questions	
here
Download		
today’s	
resources
Questions,	Tweets	&	Resources
#RSP16
How	Are	We	Doing?
#RSP16
About	Retail	TouchPoints
ü Launched in 2007
ü Over 30,000 retail subscribers
ü To provide executives with relevant,
insightful content across a variety of
digital medium
Sign up for our weekly newsletter:
www.retailtouchpoints.com/subscribe
#RSP16
Panelists
MODERATOR:
Adam	Blair
Executive	Editor
Retail	TouchPoints
Brian	Gress
Director	of	IT	Governance
Hayneedle,	Inc
@BrianGress
Rami	Essaid
CEO	&	Co-Founder
Distil	Networks
@ramiessaid
Are bots eating your lunch
on your ecommerce site?
Agenda
Bots 101
The growing bot problem
How bots are eating your lunch!
Hayneedle case study
Selection criteria for a bot detection solution
Q & A
Good Bots
Search Engine Crawling
Power APIs
Check system connectivity and
status
Bad Bots
Steal content
Scan for vulnerabilities
Perform fraud
etc.
The Basics of Bots
A “Bot” is an automated program that runs on the internet
Traffic Distribution by Type, 2016
High Profile Web Scraping in the Ecommerce Industry
QVC is an American television home
shopping network and online ecommerce
site.
Aggressive price and inventory scraping by shopping
aggregator app resulted in the following repercussions for
QVC
● Two day website outage
● Loss of $2M in revenue
● Highly publicized lawsuit
● Damage to QVC Brand
Traffic by Size, Ecommerce Sites, 2014 vs 2015
Small and medium ecommerce sites saw about a
100% increase in bad bots between 2014 and 2015
Majority of Bots are Advanced Persistent Bots (APBs)
APBs have one or more of the following abilities:
Advanced
Mimick human behavior
Load JavaScript
Load external resources
Support cookies
Browser automation (Selenium, PhantomJS)
Persistent
Dynamic IP rotation
Distribute attacks across IP addresses
Hide behind anonymous and peer-to-peer proxies
2016 Distil Bad Bot Report
Why the Massive Increase in APBs?
Online data has increased in value
Pricing information, product availability, product
descriptions, and vendor reviews are changing
daily and highly valuable to competitors
Anyone can get in the game
Cheap or free virtual servers, bandwidth, easy-to-
use tools, and scrapers for hire
Bots no longer tied to IP addresses
Bots cycle through random IP addresses
Bots hide behind anonymous proxies
Consumer IPs now infected with bot traffic too
Loading Assets & Bots Mimicking Humans
% of bots able to load external assets
(e.g. JavaScript)
% of bots able to mimic human
behavior
These bots skew marketing tools such as
(Google Analytics, A/B testing,
conversion tracking, etc.)
These bots fly under the radar of most
security tools
That Majority of Bad Bots Now Use Multiple IP Addresses
Bots which dynamically rotate IP addresses, or distribute attacks are significantly harder
to detect and mitigate
Bad Bots Cause the Majority of Website Problems
19% of Traffic Causes the Following Problems
How Bots Eat Your Lunch
How bots are eating your lunch!
How Bots Eat Your Lunch
LOST PROFITS
Decreased Customer Loyalty
Reduce Findability
Lost Cross/Upsell Opportunities
Decreased Customer Satisfaction
Increased Costs
Increased Fraud
Bots and Competitive Data Mining
Duplicating your Product Portfolio
Bots can easily gather product and supplier lists
for replication elsewhere
Undermining your Prices
Bots monitor your prices, ensuring competitors
can undercut with lower price listings
Availability Tracking
Identifying when your supply has been exhausted provides competitors a unique
opportunity to raise the price of their goods.
Negative SEO Attacks Damage Relevancy
Bots steal content, product lists, and prices for
duplication elsewhere on the Internet
Duplicated content reduces your company’s
uniqueness and thus quality score
SEO damage may result, especially if
○ Your prices are undercut
○ The content is repurposed on a more popular site
Duplicate Content Results in Diminished SEO
Common hacking tools like network
mappers and vulnerability scanners are
automated programs
Once a victim’s network has been mapped,
automated vulnerability scanning can be
used to find security flaws that can be
exploited
These bots let hackers scale their
operations
Vulnerability Scanning and Target Exploitation
Bots Make Large Scale Account Takeover Possible
Over 1 billion usernames,
passwords combinations exist in the
wild
Bot operators create bots to test
millions of username/password
combinations from breaches at
other websites to find the
credentials that work on your site
Newly compromised accounts are
then used for various forms of
fraud/theft
Automated Stolen Credit Card Testing Enables Fraud
“Carding” uses micro-transactions on stolen credit cards
against e-commerce sites to test their validity
Carding results in poor user experiences and lots of expensive
chargebacks
Bots Plant Malicious Links in Fake Comments
Comment spam is frequently used to redirect users to malicious websites
Malicious Site
Hayneedle Case Study
Hayneedle Case Study
About Hayneedle
Leading online retailer for indoor
and outdoor home furnishings
and decor
1,000s of top brands - including
Hayneedle exclusive designs -
and millions of products for
every space, style, and budget
Hayneedle Bad Bot Challenges
Bad Bot Challenges Business Impact
Competitive price scraping Competitors attempt to undercut pricing
Automated CVV guessing
games
Fraudsters use stolen credit cards in carding
attacks
Time investigating and reporting the problem
Bot traffic competing with real
customers
Web performance and the user experience
Skewed analytics
Conversion funnel optimization
A/B testing
Inefficient DIY approach
“Battle-of-the-bots” ate up 20% of team resources
Only 30% effective (at best)
Quality of life issues
Hayneedle Bad Bot Challenges
Constant game of bad bot “Whack-a-mole”
Log file analysis and performance monitoring
Agent-string analysis
IP blocking
Traffic redirects
Tarpits
...but the bad bots keep changing their identities,
scripts, and IP addresses
Hayneedle Bot Selection Criteria
Bot Detection and Mitigation Solution
Requirements
No impact on human visitors
“Self tuning” for defending against emerging
and unknown threats
Crowd-sourced threat intelligence model
Seamlessly co-exist with existing solutions
(CDN, WAF, etc.)
No “black boxes”
Traffic Overview Report
On August 7th bad bot traffic:
● Spiked ~10x
● Was 4x human traffic
Total Traffic vs CAPTCHAs Served
CAPTCHAs served
was 73% of
overall traffic
served that day!
CAPTCHA Failed Attempts and Solved
Out of
17,000,000+
CAPTCHAs
served, only 78
were solved
How to Manage Transactional Traffic
Best Practices and Lessons
Learned
Monitor (don’t CAPTCHA) traffic on
your checkout and account
subdomains
Review Threats by Organization
Understand the rationale of scrapers
Selectively Block nefarious
organizations
Blocking Nefarious Organizations
Can probably block
traffic coming from
this data center,
especially when
70% of the traffic is
from Automated
Browsers and/or
Known Violators
Hayneedle Results with Distil Networks
Eliminated competitive data mining
Intercepting bot traffic with negligible false
positives
Clean analytics for funnel optimization and A/B
testing
Distil is a key piece of our fraud detection and
prevention suite of tools
Upstream HTTP Errors Report highlighted an issue
with our CDN provider
Web infrastructure dedicated to serving humans
Boosted team morale!
The Only Easy and Accurate Way
to Protect Web Applications from
Bad Bots, API Abuse, and Fraud
Browser Validation
Detects all known browser automation tools, such as Selenium and
Phantom JS
Protects against browser spoofing by validating each incoming
request as self reported
Advanced Bot Detection Increases Accuracy
Behavioral Modeling and Machine Learning
Machine-learning algorithms pinpoint behavioral anomalies specific
to your site’s unique traffic patterns
Self optimizing algorithms improve bot detection and mitigation
without manual configuration
Sticky Bot Tracking With No Impact On Real Users
Device Fingerprinting
Fingerprints stick to the bot even if it
attempts to reconnect from random IP
addresses or hide behind an
anonymous proxy or peer-to-peer
network
Tracks distributed attacks that would
normally fly under the radar
Without Distil With Distil
Without Impacting Users Sharing the Same IP
Avoids blocking residential users or organizations
that might share the same NAT as the bot or botnet
Threat Intelligence From All Distil-Protected Sites
Known Violators Database
Real-time updates from the world’s largest Known
Violators Database, which is based on the
collective intelligence of all Distil-protected sites
Distil customers are automatically protected
against new threats discovered anywhere on the
network
Automated Attackers Leverage APIs as an Attack Vector
Web Applications
API Endpoints
When blocked from a website, Bots frequently use APIs as an
attack vector
APIs tend to have access to the same content, but without as many
security controls
○ Install on virtualized or bare metal appliance(s)
○ High availability configurations with failover
monitoring
○ Heartbeat up to Distil Cloud
○ Deploys in days
Flexible Deployment Options
○ Automatically compresses and optimizes content for faster
delivery
○ 17 global datacenters automatically fail over when a
primary location goes offline
○ Automatically increases infrastructure and bandwidth to
accommodate spikes
○ Deploys in hours
Physical or Virtual Appliances
Content Delivery Network
Dedicated Analyst Team
Fully Managed Service (aka High Touch Services)
So, is a
bot
eating
your
lunch?
#RSP16
Please	Share	Your	Feedback
#RSP16
Q&A	//	Panelists
MODERATOR:
Adam	Blair
Executive	Editor
Retail	TouchPoints
Brian	Gress
Director	of	IT	Governance
Hayneedle,	Inc
@BrianGress
Rami	Essaid
CEO	&	Co-Founder
Distil	Networks
@ramiessaid
#RSP16
Thanks	for	attending
PLEASE	JOIN	US	FOR	OUR	NEXT	SESSION:
Tomorrow	at	12	PM	ET	/	9	AM	PT

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Rtp rsp16-distil networks-final-deck

  • 5. #RSP16 About Retail TouchPoints ü Launched in 2007 ü Over 30,000 retail subscribers ü To provide executives with relevant, insightful content across a variety of digital medium Sign up for our weekly newsletter: www.retailtouchpoints.com/subscribe
  • 7. Are bots eating your lunch on your ecommerce site?
  • 8. Agenda Bots 101 The growing bot problem How bots are eating your lunch! Hayneedle case study Selection criteria for a bot detection solution Q & A
  • 9. Good Bots Search Engine Crawling Power APIs Check system connectivity and status Bad Bots Steal content Scan for vulnerabilities Perform fraud etc. The Basics of Bots A “Bot” is an automated program that runs on the internet Traffic Distribution by Type, 2016
  • 10. High Profile Web Scraping in the Ecommerce Industry QVC is an American television home shopping network and online ecommerce site. Aggressive price and inventory scraping by shopping aggregator app resulted in the following repercussions for QVC ● Two day website outage ● Loss of $2M in revenue ● Highly publicized lawsuit ● Damage to QVC Brand
  • 11. Traffic by Size, Ecommerce Sites, 2014 vs 2015 Small and medium ecommerce sites saw about a 100% increase in bad bots between 2014 and 2015
  • 12. Majority of Bots are Advanced Persistent Bots (APBs) APBs have one or more of the following abilities: Advanced Mimick human behavior Load JavaScript Load external resources Support cookies Browser automation (Selenium, PhantomJS) Persistent Dynamic IP rotation Distribute attacks across IP addresses Hide behind anonymous and peer-to-peer proxies 2016 Distil Bad Bot Report
  • 13. Why the Massive Increase in APBs? Online data has increased in value Pricing information, product availability, product descriptions, and vendor reviews are changing daily and highly valuable to competitors Anyone can get in the game Cheap or free virtual servers, bandwidth, easy-to- use tools, and scrapers for hire Bots no longer tied to IP addresses Bots cycle through random IP addresses Bots hide behind anonymous proxies Consumer IPs now infected with bot traffic too
  • 14. Loading Assets & Bots Mimicking Humans % of bots able to load external assets (e.g. JavaScript) % of bots able to mimic human behavior These bots skew marketing tools such as (Google Analytics, A/B testing, conversion tracking, etc.) These bots fly under the radar of most security tools
  • 15. That Majority of Bad Bots Now Use Multiple IP Addresses Bots which dynamically rotate IP addresses, or distribute attacks are significantly harder to detect and mitigate
  • 16. Bad Bots Cause the Majority of Website Problems 19% of Traffic Causes the Following Problems
  • 17. How Bots Eat Your Lunch How bots are eating your lunch!
  • 18. How Bots Eat Your Lunch LOST PROFITS Decreased Customer Loyalty Reduce Findability Lost Cross/Upsell Opportunities Decreased Customer Satisfaction Increased Costs Increased Fraud
  • 19. Bots and Competitive Data Mining Duplicating your Product Portfolio Bots can easily gather product and supplier lists for replication elsewhere Undermining your Prices Bots monitor your prices, ensuring competitors can undercut with lower price listings Availability Tracking Identifying when your supply has been exhausted provides competitors a unique opportunity to raise the price of their goods.
  • 20. Negative SEO Attacks Damage Relevancy Bots steal content, product lists, and prices for duplication elsewhere on the Internet Duplicated content reduces your company’s uniqueness and thus quality score SEO damage may result, especially if ○ Your prices are undercut ○ The content is repurposed on a more popular site Duplicate Content Results in Diminished SEO
  • 21. Common hacking tools like network mappers and vulnerability scanners are automated programs Once a victim’s network has been mapped, automated vulnerability scanning can be used to find security flaws that can be exploited These bots let hackers scale their operations Vulnerability Scanning and Target Exploitation
  • 22. Bots Make Large Scale Account Takeover Possible Over 1 billion usernames, passwords combinations exist in the wild Bot operators create bots to test millions of username/password combinations from breaches at other websites to find the credentials that work on your site Newly compromised accounts are then used for various forms of fraud/theft
  • 23. Automated Stolen Credit Card Testing Enables Fraud “Carding” uses micro-transactions on stolen credit cards against e-commerce sites to test their validity Carding results in poor user experiences and lots of expensive chargebacks
  • 24. Bots Plant Malicious Links in Fake Comments Comment spam is frequently used to redirect users to malicious websites Malicious Site
  • 26. About Hayneedle Leading online retailer for indoor and outdoor home furnishings and decor 1,000s of top brands - including Hayneedle exclusive designs - and millions of products for every space, style, and budget
  • 27. Hayneedle Bad Bot Challenges Bad Bot Challenges Business Impact Competitive price scraping Competitors attempt to undercut pricing Automated CVV guessing games Fraudsters use stolen credit cards in carding attacks Time investigating and reporting the problem Bot traffic competing with real customers Web performance and the user experience Skewed analytics Conversion funnel optimization A/B testing Inefficient DIY approach “Battle-of-the-bots” ate up 20% of team resources Only 30% effective (at best) Quality of life issues
  • 28. Hayneedle Bad Bot Challenges Constant game of bad bot “Whack-a-mole” Log file analysis and performance monitoring Agent-string analysis IP blocking Traffic redirects Tarpits ...but the bad bots keep changing their identities, scripts, and IP addresses
  • 29. Hayneedle Bot Selection Criteria Bot Detection and Mitigation Solution Requirements No impact on human visitors “Self tuning” for defending against emerging and unknown threats Crowd-sourced threat intelligence model Seamlessly co-exist with existing solutions (CDN, WAF, etc.) No “black boxes”
  • 30. Traffic Overview Report On August 7th bad bot traffic: ● Spiked ~10x ● Was 4x human traffic
  • 31. Total Traffic vs CAPTCHAs Served CAPTCHAs served was 73% of overall traffic served that day!
  • 32. CAPTCHA Failed Attempts and Solved Out of 17,000,000+ CAPTCHAs served, only 78 were solved
  • 33. How to Manage Transactional Traffic Best Practices and Lessons Learned Monitor (don’t CAPTCHA) traffic on your checkout and account subdomains Review Threats by Organization Understand the rationale of scrapers Selectively Block nefarious organizations
  • 34. Blocking Nefarious Organizations Can probably block traffic coming from this data center, especially when 70% of the traffic is from Automated Browsers and/or Known Violators
  • 35. Hayneedle Results with Distil Networks Eliminated competitive data mining Intercepting bot traffic with negligible false positives Clean analytics for funnel optimization and A/B testing Distil is a key piece of our fraud detection and prevention suite of tools Upstream HTTP Errors Report highlighted an issue with our CDN provider Web infrastructure dedicated to serving humans Boosted team morale!
  • 36. The Only Easy and Accurate Way to Protect Web Applications from Bad Bots, API Abuse, and Fraud
  • 37. Browser Validation Detects all known browser automation tools, such as Selenium and Phantom JS Protects against browser spoofing by validating each incoming request as self reported Advanced Bot Detection Increases Accuracy Behavioral Modeling and Machine Learning Machine-learning algorithms pinpoint behavioral anomalies specific to your site’s unique traffic patterns Self optimizing algorithms improve bot detection and mitigation without manual configuration
  • 38. Sticky Bot Tracking With No Impact On Real Users Device Fingerprinting Fingerprints stick to the bot even if it attempts to reconnect from random IP addresses or hide behind an anonymous proxy or peer-to-peer network Tracks distributed attacks that would normally fly under the radar Without Distil With Distil Without Impacting Users Sharing the Same IP Avoids blocking residential users or organizations that might share the same NAT as the bot or botnet
  • 39. Threat Intelligence From All Distil-Protected Sites Known Violators Database Real-time updates from the world’s largest Known Violators Database, which is based on the collective intelligence of all Distil-protected sites Distil customers are automatically protected against new threats discovered anywhere on the network
  • 40. Automated Attackers Leverage APIs as an Attack Vector Web Applications API Endpoints When blocked from a website, Bots frequently use APIs as an attack vector APIs tend to have access to the same content, but without as many security controls
  • 41. ○ Install on virtualized or bare metal appliance(s) ○ High availability configurations with failover monitoring ○ Heartbeat up to Distil Cloud ○ Deploys in days Flexible Deployment Options ○ Automatically compresses and optimizes content for faster delivery ○ 17 global datacenters automatically fail over when a primary location goes offline ○ Automatically increases infrastructure and bandwidth to accommodate spikes ○ Deploys in hours Physical or Virtual Appliances Content Delivery Network
  • 42. Dedicated Analyst Team Fully Managed Service (aka High Touch Services)