Connect with us

Hi, what are you looking for?

SecurityWeekSecurityWeek

Cybercrime

ThreatMetrix Secures $12.1 Million to Help Companies Fight Cybercrime

ThreatMetrix, a provider of fraud prevention solutions, today announced that it has secured $12.1 million in financing in a Series C round.

ThreatMetrix Venture Capital Funding

ThreatMetrix, a provider of fraud prevention solutions, today announced that it has secured $12.1 million in financing in a Series C round.

ThreatMetrix Venture Capital Funding

The Los Altos, California based company’s online fraud-management software helps companies such as financial services, e-commerce, travel, ticketing, Web 2.0 and payment providers accomplish tasks such as verifying new accounts, authorizing payments and transactions and authenticating user logins in real-time without relying on personally identifiable information (PII).

Using a software-as-a-service (SaaS) approach, ThreatMetrix profiles the device used in an online transaction to help companies determine whether the users are fraudsters or customers. ThreatMetrix device profiling goes beyond browser fingerprinting to identify the device, bypass proxies and detect the use of botnets. Implementation enables companies to get results in hours or days, rather than weeks or months and pricing starts around $1,000 per month.

Anti-Fraud Technology

Internet fraud is a significant and a growing problem on a global scale. According to CyberSource’s 11th Annual Fraud Report, Internet retailers lost more than $3.3 billion to fraud last year.

“The multi-billion dollar IT security industry continues to rapidly expand due to the growing wave of global cybercrime,” said Ben Boyer, managing director, Tenaya Capital. “The principal highway for today’s cybercriminals is the Internet where a fraudster using a stolen or synthetic identity can easily compromise bank accounts, Internet retailers, and members on social networking sites,” Boyer added.

“Over the course of the last 18 months we’ve brought on board over 250 customers who use our ThreatMetrix Fraud Network to stop online fraud to verify new accounts, authorize card-not-present payments and authenticate user logins. We anticipate using the funding for general operating capital, expansion of our product offering, and sales and marketing,” said Reed Taussig, president and CEO, ThreatMetrix.

The round was led by Tenaya Capital (formerly Lehman Brothers Ventures) and existing investors including U.S. Venture Partners, CM Capital and TVP, also participated in the round. ThreatMetrix closed a $6.1 million B round of funding in September, 2009 and received $7 million in a Series A round led by CM Capital and Technology Venture Partners.

Implementing anti-fraud technologies is becoming critical for online businesses and the market has recognized the need for technologies to thwart cybercrime. In August, CA Technologies announced it would acquire privately-held Arcot Systems, Inc., a provider of authentication and fraud prevention solutions for $200 million in cash.

Advertisement. Scroll to continue reading.
Written By

For more than 15 years, Mike Lennon has been closely monitoring the threat landscape and analyzing trends in the National Security and enterprise cybersecurity space. In his role at SecurityWeek, he oversees the editorial direction of the publication and is the Director of several leading security industry conferences around the world.

Click to comment

Trending

Daily Briefing Newsletter

Subscribe to the SecurityWeek Email Briefing to stay informed on the latest threats, trends, and technology, along with insightful columns from industry experts.

Join the session as we discuss the challenges and best practices for cybersecurity leaders managing cloud identities.

Register

SecurityWeek’s Ransomware Resilience and Recovery Summit helps businesses to plan, prepare, and recover from a ransomware incident.

Register

Expert Insights

Related Content

Application Security

Cycode, a startup that provides solutions for protecting software source code, emerged from stealth mode on Tuesday with $4.6 million in seed funding.

Cybercrime

The changing nature of what we still generally call ransomware will continue through 2023, driven by three primary conditions.

Cybercrime

A recently disclosed vBulletin vulnerability, which had a zero-day status for roughly two days last week, was exploited in a hacker attack targeting the...

Cybercrime

As it evolves, web3 will contain and increase all the security issues of web2 – and perhaps add a few more.

Cybersecurity Funding

SecurityWeek investigates how political/economic conditions will affect venture capital funding for cybersecurity firms during 2023.

Cybercrime

Luxury retailer Neiman Marcus Group informed some customers last week that their online accounts had been breached by hackers.

Cybercrime

Zendesk is informing customers about a data breach that started with an SMS phishing campaign targeting the company’s employees.

Cybercrime

Patch Tuesday: Microsoft calls attention to a series of zero-day remote code execution attacks hitting its Office productivity suite.