Jan 29What Do You Call One of the Planet’s Largest Identity Theft and Fraud Prevention Networks? Answer: ThreatMetrix.
The year 2013 saw ThreatMetrix™ leading the industry in “Building Trust on the Internet” to slash fraud and foster faster, more secure and safer online transactions in every part of the world. (To learn more, read my latest ThreatMetrix blog post, “The New Model for Building Trust on the Internet.”)
Twenty thirteen also saw new laws and regulations enacted for the protection of consumer privacy. Many of those rules favor privacy to the detriment of retail and other enterprises which face a virtual tsunami of cybercrime. And, cybercriminals are getting more sophisticated and better at their craft month by month.
“We work with many of the world’s most recognized and trusted brands, financial institutions, enterprises and government agencies,” said Reed Taussig, president and CEO, ThreatMetrix. “Today, we protect over 500 million transactions each month and over 160 million active online accounts. Every transaction is screened by ThreatMetrix to provide businesses with confidence and trust that they are servicing an authenticated and valuable customer and not a cybercriminal. The ThreatMetrix™ Global Trust Intelligence Network (The Network), which is completely passive and fully consumer anonymized, has proven to be the right solution to satisfy the competing agendas of consumer privacy and security.”
In its fight against cybercrime, ThreatMetrix has made advances in key areas, passed many milestones and notched numerous achievements:
- Company Evolution: In 2013, ThreatMetrix completed its evolution from an advanced device identification and malware detection company to a true platform provider. “Our unique combination of technologies, processes and data significantly broadens the scope of the ThreatMetrix solution in the online world,” said Taussig. “We enable a new kind of passive, context-based authentication that can establish credibility of each transaction based on fully anonymous device usage, purchase history and other factors to determine the level of authentication required to process the request without risk of compromising consumer identity.”
- The Network: In 2013, ThreatMetrix expanded The Network – a repository of devices, anonymized identities, transactions and interactions – to include over 2,500 customers and 10,000 websites, enabling ThreatMetrix customers to query transactions in real-time to differentiate between legitimate customers and cybercriminals hiding behind spoofed or stolen identities.
- The Rise of Mobile: Mobile traffic on The Network increased threefold and represented a third of all network traffic in 2013. ThreatMetrix projects mobile traffic to represent at least 50 percent of its network traffic in 2014.
- Record Transaction Volumes: ThreatMetrix more than doubled the number of customer transactions it processed in 2013, reaching 4.4 billion transactions during 2013. Transaction volumes are anticipated to jump to more 20 billion transactions in 2014, underscoring ThreatMetrix’s rapid growth and corresponding systems performance and reliability.
- Record Recurring Revenue: The company’s recurring customer revenue in 2013 was more than 120 percent total revenues in 2012, which is a testament to the success ThreatMetrix customers are experiencing with its products.
- SaaS Recurring Revenue Model: ThreatMetrix financial performance has been outstanding, driven in large part by customer retention approaching 100 percent. With a predictable revenue stream, ThreatMetrix will have the ability to sustain investments in new products and services to better service existing customers as well as expansion into new markets.
- New Customers: The company more than doubled its customer base in 2013, both directly and in conjunction with its extensive partner channel. The average new account value of these customers was up almost 100 percent over 2012.
- New Products and Technologies: ThreatMetrix launched several breakthrough products and technologies in 2013. By combining the power of ThreatMetrix™ Persona ID, ThreatMetrix™ Trust Tags and the ThreatMetrix™ Global Policy Engine, the company now enables its customers to define, validate and compare industry standard best practices and techniques to passively identify and authenticate good customers while simultaneously stopping sophisticated international cybercriminals. ThreatMetrix Trust Tags are truly unique in the industry, enabling customers to anonymously interrogate and validate credentials and past behaviors in order to eliminate costly, intrusive step-up authentications while simultaneously preventing cybercrime.
- International Growth: Asia Pacific business doubled year-over-year in 2013 and similar growth opportunities are projected in 2014.
- New and Existing Markets: ThreatMetrix doubled its presence in the financial services market year-over-year while becoming the de facto fraud solution in the retail payments space. Meanwhile, ThreatMetrix entered the insurance and healthcare markets.
- Operations: In response to triple digit growth in transaction volume during 2013, the company tripled the capacity of its data centers in California, Florida and the Netherlands.
- Strategic Management Hires: John Lindner joined as vice president of sales, Americas and Dr. Stephen Topliss was named vice president of services and support.
- ThreatMetrix 2013 Cybercrime Prevention Summit: Themed “Strength in Numbers” and keynoted by Brian Krebs, author of KrebsOnSecurity.com, the third annual sold out summit emphasized the importance of a collective approach to stopping sophisticated cybercriminals in their tracks, meaning that individuals and businesses today must work together to make cybersecurity a priority to stay ahead of today’s evolving cybercrime threats.
- Awards: ThreatMetrix won a number of industry awards, including 2013 Best in Biz Award; Security Innovation Network (SINET) 16 Innovators list; 2013 American Business Award Gold Stevie in the category of the “Best New Product or Service of the Year – Software – Security Solution” and a Silver Steve for the “Most Innovative Tech Company of the Year”; 2013 TechNavio top 15 Cloud Security Company; 2013 Gold for “Most Innovative Company of the Year” in Best in Biz Awards 2013 International; 2013 AlwaysOn Global Top Private Companies List and 2013 Top 15 Most Important Startups of 2013 by Business Insider.
“ThreatMetrix exited 2013 leading the way towards building trust on the Internet by helping its customers identify and differentiate between authenticated good consumers and bad actors with its TrustDefender™ Cybercrime Protection Platform,” said Taussig. “By leveraging the power of The Network, now one of the largest fully anonymized fraud identification networks in the world, ThreatMetrix protects customer trust and eliminates fraud without compromising consumer privacy. Our record 2013 milestones position the company for continued growth throughout 2014.”
To learn more about “The New Model for Building Trust on the Internet,” read the latest ThreatMetrix blog post by Taussig.