Digital persona and transaction authentication company ThreatMetrix is enjoying a strong 2016 on several fronts, highlighted by growing network usage with the core e-commerce industry and accelerated market adoption in global financial services.
CEO Reed Taussig said customer billings have increased 65 percent and GAAP revenue is up 52 percent year-over-year from the first half of 2015. Network transaction volume more than doubled.
“Global financial institutions have embraced the ThreatMetrix Digital Identity Network, and we are honored to now serve 17 of the world’s leading banks with frictionless fraud detection, threat intelligence and digital authentication solutions.”
ThreatMetrix credits four factors for its growth, including a pair of new products. Open Intel orchestrates third-party intelligence signals within its platform to enhance fraud prevention and enterprisewide authentication. Spring ’16 Release comes with a new Smart Analytics service combining behavioral analytics and machine learning.
High profile ThreatMetrix customers hosted a pair of webinars which publicized the company. In January they joined Kabbage and Aite Group.
“Balancing fraud and customer engagement for the digital economy” looked at fraud minimization and reduced friction in a customer service environment. In June Visa was featured in “Risk-based authentication — the fuel for business without borders”, an examination of how fraud and risk professionals can improve profits and have a customer-centric approach.
ThreatMetrix also participated in discussions on a pair of key issues affecting the industry. In May they hosted a panel with Aetna, State Street and Cisco. “Big data, banking and blockchain: Plotting your digital course to competitive advantage” looked at how security professionals can help financial institutions safely adopt blockchain technology.
Later in May they partnered with First Annapolis to release results from a multi-market study which assessed consumer perceptions of online and mobile banking and payments security in the United States, United Kingdom and Australia. A key finding was that one year of friction and fraud costs American banks $14.9 billion.
A pair of key hires also helped. Leah Evanski became vice president of strategic alliances, bringing domain experience in partner strategies and fraud and identity management product development background with Experian, Cisco and FICO. George Tubin is the new senior director of product strategy and innovation.
CMO Armen Najarian said ThreatMetrix helps companies with new account origination, transactions, account takeovers and logins.
“We’ve effectively set up the world’s largest crowdsourced authentication network,” Mr. Najarian said. “Every ThreatMetrix customer works with contributed, anonymous data and enriches the context back to the other customers.
“No one bank or financial institution will have enough content to make the right real-time decision.”
When a new account application is screened at ThreatMetrix they check to see if the user is anywhere in their network and then look for aberrations such as if the user shows up in more than one time zone or they are associated with multiple email addresses.
“With new account creation there is nearly 100 percent likelihood that even if the new bank has never seen the person before ThreatMetrix has.”
Mr. Najarian used the example of a user signing up for a trial account with a video streaming service. Their credit card validation gets stolen and sold on the secondary market where fraudsters create secondary accounts.
“We effectively eliminate those areas,” Mr. Najarian said. And in 120 milliseconds.
When the account application begins, a call is made to ThreatMetrix, which uses location, behavioral attributes and other factors to either confirm or deny applicant identity.
Other common fraud areas are online services a user only uses a few times like tax preparation software.
“Many forget their password,” Mr. Najarian said. “It’s a challenge to authenticate users who were trusted 365 days ago.”
ThreatMetrix has a strong presence in alternative finance, with six of the top nine P2P’s being clients, Mr. Najarian said.
“It’s a natural fit, as alternative lenders were born in the cloud and born to revolutionize how credit decisions are being made in real time. ThreatMetrix injects context and science that is core to the lending decision process.”
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