ThreatMetrix Achieves Year of Record Growth in 2009 Helping Companies Prevent Web Fraud and Enable E-Commerce
Posted January 26, 2010
Company Secures More Than 100 New Customers in Breakout Year
LOS ALTOS, CA–January 26, 2010–ThreatMetrix™, the fastest growing provider of device identification solutions for preventing online fraud, today announced a breakout year in 2009, with extraordinary gains in new customers, markets served, sales pipeline, financing, partner ecosystem, and industry recognition.
“We were able to secure more than 100 new customers in the face of the worst recession in decades,” said Reed Taussig, president and CEO, ThreatMetrix. “Companies recognize that deterring online fraud provides their good customers a safe and secure environment from which to conduct business and is strategic to their bottom line. The fast adoption of our products in the U.S. and worldwide underscores the mission critical market opportunity we are addressing.”
“It’s estimated that as many as 15 percent of online computers are part of a botnet, and it’s likely to get worse,” said Linda Musthaler, Principal Analyst, Essential Solutions Corporation. “With so many bot devices now in place, cyber criminals are able to easily hide both their locations and their identities to commit their assaults. As a result, the online fraud problem is growing bigger and wider. ThreatMetrix uses a variety of techniques to identify devices and assess risks in order to prevent fraud. This is an essential weapon to provide a more secure line of defense for your online transactions.”
Following are some of the key areas where ThreatMetrix made significant advances in 2009:
- Achieved rapid customer adoption across multiple markets. In 2009, ThreatMetrix secured more than 100 new customers across a variety of markets including social networks (dating, gaming), financial services, e-commerce, affiliate marketing, and payments. Representative customers include Date.com, Name.com, Chellaul Corporation, EDating for Free, and Ebates. “At Ebates we’re using ThreatMetrix services to stop scammers from accessing our merchant partners – so they never get the opportunity to attempt a fraudulent transaction,” said Kevin H. Johnson, president and CEO, Ebates. “The result is enhanced protection for our retailers and fewer pay-outs on fraudulent purchases. The bottom line for us is: online fraud isn’t going away but it doesn’t have to hurt your business.”
- Accelerated sales pipeline. Through a combination of direct sales and strategic partner reseller relationships, ThreatMetrix was able to double its sales pipeline quarter-over-quarter since the company began selling its SaaS-based solutions in the U.S. in January 2009.
- Secured Series B financing: In a challenging economic climate, ThreatMetrix was able to secure $6.1 million in a Series B financing led by US Venture Partners, one of the most prestigious and well-recognized venture capital companies in Silicon Valley.
- Invested heavily in corporate infrastructure and business operations. During the year ThreatMetrix invested heavily in systems infrastructure to increase capacity in anticipation of continued growth in 2010 and to extend its reputation for continuous availability and performance.
- Evolved into an international company. In 2009 ThreatMetrix evolved into a true global company supporting customers in Europe, North America, South America, Asia, and Australia.
- Expanded partner ecosystem. In 2009, ThreatMetrix entered into strategic partner reseller relationships with recognized industry leaders including CyberSource, a leading provider of electronic payment, risk and security management solutions to organizations that process orders for goods and services over the Internet; Accertify, a leader in providing e-commerce companies with software, tools and strategies for preventing online fraud and mitigating enterprise-wide risks; and Entrust, a provider of trusted solutions that secure digital identities and information for enterprises and governments in 2,000 organizations spanning 60 countries.
- Secured industry recognition. ThreatMetrix won the 2009 Emerging Technology Award from the Silicon Valley/San Jose Business Journal. ThreatMetrix was selected as the winner in the security category following a comprehensive review of vendors and products by the publication’s editors.
ThreatMetrix (www.threatmetrix.com) helps companies control online fraud and abuse in real time so they can significantly reduce on-line fraud, acquire more customers faster, reduce costs, and increase customer satisfaction. ThreatMetrix profiles the device used in an online transaction so companies can determine whether the users are fraudsters or customers. ThreatMetrix’ simple and cost-effective SaaS approach to implementation enables companies to get results in hours or days, rather than weeks or months. ThreatMetrix serves a rapidly growing customer base in the U.S. and around the world across a variety of industries including online retail, financial, social networks, and alternative payments.