Mountain View, California – (The Hosting News) – February 10, 2006 – Internet security and infrastructure company, VeriSign, Inc., has launched the VeriSign Fraud Detection Service, a new solution that forms part of VeriSign’s overall layered authentication solution targeted at preventing online identity theft.
As part of the deployment of the service, VeriSign has also reached a definitive agreement to acquire Snapcentric, Inc., a provider of online fraud detection solutions using advanced anomaly detection technology. The newly acquired technology will be a key addition to VeriSign’s suite of authentication solutions, providing an invisible layer of protection against online fraud.
Consumer banks and other financial institutions are struggling to comply with recent FFIEC guidelines, which state that user names and passwords are no longer sufficient for high-risk transactions. The VeriSign Fraud Detection Service will complement VeriSign’s existing authentication offerings to help banks achieve FFIEC compliance by authenticating consumers based on behavioral patterns.
The VeriSign Fraud Detection Service will take a self-learning approach to fraud detection, adapting to customer usage habits unique to that individual. Using pattern recognition technology, it flags potentially fraudulent activities based on known types of fraud and behaviors not associated with the user. Because the service is self-learning, it can adapt to changing criminal behavior without manual intervention. VeriSign believes that this unique capability differentiates the Snapcentric technology from all competitive solutions in the marketplace.
According to VeriSign, the invisible layer of protection afforded by the VeriSign Fraud Detection Service lets financial institutions authenticate users for low risk transactions without changing the online experience. For high risk transactions, the VeriSign Unified Authentication Service provides a wide range of two-factor authentication devices to verify a user’s identity. In combination, these services provide a comprehensive approach to address online banking and e-commerce authentication needs.
Nico Popp, Vice President, Authentication Services with VeriSign commented on the new product, ”Financial institutions of all sizes are looking for easy-to-deploy solutions that help them achieve compliance with FFIEC without further taxing their IT resources or staff. The introduction of the VeriSign Fraud Detection Service is a strategic move that provides VeriSign with advanced technology to help these institutions achieve compliance in a cost effective and non-intrusive way.”
The VeriSign Fraud Detection Service is available for immediate Beta testing, with general availability expected within the next 60 days. The acquisition of Snapcentric is being accounted for as a purchase transaction and is valued at $12 million. Revenue and earnings contributions from the acquisition will not be material to VeriSign’s 2006 financial results. All of Snapcentric’s employees in the United States and Israel will become part of VeriSign Security Services. The transaction is expected to close later this quarter.
To learn more about VeriSign, Inc., please visit: www.verisign.com.