FraudMAP® Emerges as Standard for Anomaly Detection and Transaction Monitoring

LOS ALTOS, Calif., Feb. 8, 2011 /PRNewswire/ -- Guardian Analytics, the innovator in behavioral analytics fraud prevention software, today announced a record 2010. Accomplishments include 150 percent year-over-year growth in financial institutions adopting its flagship solution FraudMAP, 100 percent customer renewals of its subscription-based service, and 134 percent revenue growth H2 2010 over H1 2010. The rapid growth in new customers and continued investment by existing ones demonstrates that financial institutions are prioritizing a new generation of anti-fraud solutions to counteract the growing risks in online and mobile banking from cybercriminals' relentless attacks on existing security controls.  

A rapidly growing number of national and community financial institutions which operate on 15 of the leading online retail and business banking platforms have standardized on FraudMAP for anomaly detection and transaction monitoring. FraudMAP uses behavioral analytics to detect account takeover and fraudulent transactions by proactively identifying suspicious activities relative to normal aggregate and individual behavior.

"The scale and scope of cybercrime has grown to the point where financial institutions are no longer content to be caught flat-footed, and the leading FI's are bringing fraud prevention to the forefront of their business strategies," said Terry Austin, CEO of Guardian Analytics. "Our rapid growth shows we've hit the mark with a proven solution that is accessible to institutions of all sizes. We expect another high growth year in 2011 as the need for more advanced fraud detection becomes a required part of any layered security strategy."

Proven to Stop a Wide Variety of Attacks

By transparently monitoring all retail and business account holders' online activity from login to logout, FraudMAP proactively detects account compromise, account reconnaissance, fraud staging and fraudulent transactions across a wide range of manual and malware-driven attacks.  FraudMAP for Retail Banking and FraudMAP for Business Banking have successfully identified:

• Account compromise stemming from Man-in-the-Browser, malware, phishing, and vishing
• Account reconnaissance where criminals perform unusual non-transactional activities to steal data to commit fraud in other channels or to plan the optimal time to commit online fraud
• Fraud staging, where criminals add new users to defeat dual controls, add mules/payees to ACH batches, create new wire templates, or add payees to bill pay
• Fraudulent ACH, wire, bill pay, and other bank-to-bank transfers

Rapid Product Innovation Addresses Key Market Issues

In late 2009, Guardian Analytics recognized a rapid surge in fraud attacks plaguing small and medium businesses and the banks that serve them. The company quickly responded to this escalating issue by releasing FraudMAP for Business Banking in February 2010, a solution purpose-built to identify fraud in the unique multi-user and transaction-intensive business banking environment.  

Further, to align with the outsourced model used by many financial institutions and to make the advanced protection offered by FraudMAP accessible to resource-constrained community banks and credit unions, Guardian Analytics released FraudMAP Version 4 in October. This new solution features a Software-as-a-Service (SaaS) delivery model and turn-key deployments on a wide variety of online banking platforms. This unique rapid deployment model requires little to no IT resources and allows institutions to start using FraudMAP's advanced fraud detection within a few days of signing up for a FraudMAP subscription or trial.

"Fraudsters have proven that they can defeat the common security measures deployed by most financial institutions such as multi-factor authentication, dual controls or even tokens," said George Tubin, senior research director, TowerGroup, a Corporate Executive Board Company. "Proven layers of security such as behavioral analytics can help institutions proactively stop fraud without placing additional security burdens on account holders."

"Fraud attacks targeted at small and medium-sized businesses have become more prevalent over the past year and have gotten quite a bit of media attention across the nation. We made the strategic decision to take additional precautions to ensure that our customers are protected," said Mellani Ocampo, ecommerce manager, Pacific Continental Bank. "Fraudsters continue to develop their attacks and Guardian Analytics' advanced behavioral modeling was exactly what we were looking for to be better prepared for any type of Internet-based attack. We were also impressed with Guardian's new SaaS delivery model which makes the solution quick and easy to deploy so we could begin taking advantage of it nearly immediately."

A summary of FY 2010 highlights include:

• 150 percent year-over-year growth in customers
• 100 percent customer renewals
• 134 percent growth in revenue from 1H 2010 to 2H 2010
• Customers on fifteen leading retail and business banking platform providers
• Record levels of monthly and annual recurring revenue

About Guardian Analytics

Headquartered in Los Altos, Calif., Guardian Analytics is focused on the prevention of online banking fraud and committed to making advanced solutions available to institutions of all sizes. The company's risk management approach to detecting account takeover and fraudulent transactions is built on deep expertise in behavioral analytics, online banking and online fraud. National and community banks and credit unions rely on Guardian Analytics to protect individual account assets, the integrity of their online channels and their brand reputations. Founded in 2005, Guardian Analytics is privately held with venture funding from Foundation Capital and Sutter Hill Ventures. For more information, please visit www.guardiananalytics.com.

SOURCE Guardian Analytics