Abstract: A system and method for detecting and identifying intruders in a computer network environment by providing a network traffic evaluation and simulation module at the interface between a protected network and external traffic source. The evaluation and simulation module identifies suspected intruders by observing intrusion pattern behavior and then presents a simulated network to the intruder. The simulated network appears to offer the intruder valuable information and provides the intruder with the appearance of success in breaking down the layers of the simulated network to keep the intruder engaged in the intrusion effort while information is gathered to trace and identify the source of the intrusion. Intrusion attempts are identified and categorized in an intrusion analysis module. The network traffic evaluation and simulated network may be provided as a self contained physical module that does not require modification of existing network software.