Experian announced on Tuesday that it has agreed to acquire 41st Parameter, a provider of web fraud detection solutions, for an undisclosed amount.
Experian said the accusation of 41st Parameter, which uses device identification technology to detect web fraud, would strengthen Experian’s web fraud detection and risk-based identity authentication capabilities.
“Creating relevant on-line customer experiences and preventing fraud are large and growing business challenges,” the company said in a statement. “41st Parameter’s patented device identification technology enables clients and their consumers to interact on the web effectively and securely, recognizing consumers to reduce fraud losses.”
Typical uses for 41st Parameter’s technology include detecting fraudulent activity when a new account is opened, determining the risk associated with a Card Not Present (CNP) online transaction, and blocking fraudulent account takeover attempts.
41st Parameter claims that its customers experience an average of 90% fraud detection lift while reviewing less than 5% of transactions, and see an ROI typically within 30 to 90 days.
“In today’s digital world, organizations need to recognize the devices used by their customers in order to provide a safe and effective experience,” said Alan Naumann, President and CEO of 41st Parameter. “I am excited that by combining our team with Experian we can together deliver very unique and effective solutions to our mutual clients around the world.”
“We are pleased to incorporate 41st Parameter’s web fraud detection to enable our clients to make real-time security decisions that improve their business profits,” said Joy Griffiths, global managing director, Experian Decision Analytics.
Founded in 2004, and with offices in Silicon Valley, Arizona, UK, and Tokyo, 41st Parameter counts leading financial institutions, eCommerce merchants, and online travel firms as customers.
41st Parameter is backed by Norwest Venture Partners, Kleiner Perkins Caufield & Byers, JAFCO Ventures and Georgian Partners.
Related Reading: How Mobile Commerce is Challenging Fraud Detection
