1. Customers analyze traffic with locally installed NGINX-based instances (there is not DNS take-over). They send applications/traffic statistics to Wallarm Cloud so we can run machine-learning stuff. We had a lot of work done for initial training of the system using our own experience in web app security (more than 250+ pentests for top-tier companies + a lot of researches done by our team like SSRF bible). We also use different honeypots and now statistics of customers with a high volume traffic.
2. There are some details about ML technique covered by Ivan for another comment
3. We have different tasks with SiftScience. SiftScience provides a fraud-detection. Wallarm protects web apps and APIs against data breaches. But these tasks are related for some of our customers.