ThreatMetrix Brings Advanced Cyber Crime-Fighting Tech to US
Posted January 20, 2009
Australian-born SaaS Leader and Device Intelligence Pioneer Relocates to Silicon Valley with Venture Capital and New Exec Team
LOS ALTOS, CA – Jan. 20, 2009 – Armed with the world’s most advanced cyber crime-fighting technology, ThreatMetrix, a leading on-demand fraud detection company, announced today it has relocated to the US from Australia where the firm had been based since its inception in 2005. A pioneer in device identification technology, which is quickly becoming the de facto standard in online fraud detection, ThreatMetrix will operate from Los Altos, California, in the heart of Silicon Valley. The company will continue to maintain research-and-development operations in Australia.
Analysts and pundits agree that cyber crime remains a serious, costly and growing problem. Fraud solutions that focus only on the behavior of the criminal fall short because they neglect a critical dimension of the problem: the identification of the device used to perpetrate the crime. The emergence of botnets and “stealth proxies” in online fraud highlights the need for device identification, a new approach to combating fraud that simultaneously profiles the device and the user’s credentials during an online transaction. This enables companies to reliably capture first-time fraud while at the same time accurately recognize valuable returning customers.
ThreatMetrix is capitalizing on this trend by being among the first vendors to offer device identification solutions that address the needs of financial institutions, e-merchants, gaming web sites and social networks alike. ThreatMetrix patent-pending technology keys on nabbing fraudsters before they commit a fraudulent act and supports solutions designed to tackle account-creation fraud, account takeover and online purchases when a credit card is not present. ThreatMetrix solutions transparently determine whether a device being used in a transaction is one of the 10’s of millions of compromised computers tracked by the company—even if the user is connecting through a computer located in a different country, which is often the case—and whether the device’s fingerprints match a known device in ThreatMetrix Global Fraud Network.
ThreatMetrix has further differentiated itself by delivering its solutions via the Software as a Service (SaaS) model which lowers the total cost of ownership to customers, increases the speed at which solutions can be deployed and shifts responsibility for managing and upgrading applications from the customer to ThreatMetrix. Since launching its first release in Q4 2007 ThreatMetrix has been deployed by more than a dozen companies.
New Leadership, Resources
Quickly making its US presence felt, ThreatMetrix has appointed Reed Taussig, a 30-year hardware and software industry veteran, to president and CEO. Mr. Taussig formerly was president and CEO at Vormetric, a company he established as the leading provider of encryption solutions for the Payment Card Industry Data Security Standards (PCI DSS). Previously Mr. Taussig was president and CEO at Callidus Software [NASDAQ:CALD], the leading provider of Enterprise Incentive Management application systems, which he grew to more than $70 million in revenues and over 350 employees. Before Callidus Mr. Taussig was president and CEO of inquiry.com, a pioneer in the B2B Internet space as well as senior vice president of operations at Gupta Technologies the leader in PC client-server software development tools and databases.
Joining Mr. Taussig as vice president of marketing at ThreatMetrix is Tom Grubb, who, in a 25-year career, has held senior marketing positions at Vormetric, Intuit [NASDAQ:INTU], Embarcadero Technologies [NASDAQ:EMBT], and Bluecurve, which was acquired by Red Hat [NASDAQ:RHAT]. Most recently Mr. Grubb was vice president of marketing at Polivec, a pioneer in the governance, risk and compliance industry.
ThreatMetrix vice president of product management Alisdair Faulkner has relocated to the US. Founder and CTO David Jones will remain in Australia to direct ThreatMetrix engineering efforts.
“Cyber crime is a multi-billion dollar problem and a serious threat to online business, personal and national security,” said Mr. Taussig. “ThreatMetrix offers the most complete and cost-effective SaaS-based device identification solution designed to catch cyber criminals the first time they attempt to complete a transaction. Our patent-pending technology is smarter, faster and more affordable than any other product on the market. We are extremely excited to introduce our solutions to the US market and bullish that device intelligence will become the primary tool for controlling online fraud.”
To drive the company’s aggressive sales, marketing and product development plans, ThreatMetrix recently secured $7M in venture capital. The Series A financing round was led by CM Capital and Technology Venture Partners, both Australia-based firms. In concert with these investments, Mark Gill and Allan Aaron have joined the ThreatMetrix board of directors from CM Capital and Technology Venture Partners, respectively. In addition Peter Relan, co-founder of WebVan and founder and CEO of Business Signatures, a leading fraud prevention company acquired by Entrust, serves as Chairman of the Board.
“Device identification, not user credentials, is a company’s best defense against online fraud,” said Relan. “Having founded two online businesses, I can say definitively that customer satisfaction with the transaction process is key to bringing them back. Device identification enables companies to quickly weed-out fraudsters, so legitimate customers enjoy a smooth and painless purchasing experience. ThreatMetrix offers the most advanced device identification technology. Combined with fresh resources, a new exec team and a huge, wide-open market, I am extremely optimistic about ThreatMetrix chances for success.”
ThreatMetrix (www.threatmetrix.com) helps companies control online fraud and abuse in real time so they can 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 approach to implementation – SaaS or API – enables companies to get results in hours or days, rather than weeks or months. ThreatMetrix is designed for midsized and large companies including online retail, financial, social networks, and payment processors.