Digital security firm VeriSign has acquired Snapcentric, a provider of online fraud detection and behavioural analysis technology, which it plans to offer to banks as part of a package of consumer authentication services.
The acquisition is being accounted for as a purchase transaction and is valued at $12 million. All of Snapcentric's employees in the US and Israel will become part of VeriSign Security Services with the transaction expected to close later this quarter.
VeriSign intends to market Snapcentric's pattern recognition software under the banner of VeriSign Fraud Detection Services. The unit will complement VeriSign's Unified Authentication Unit, which offers a range of two-factor authentication technologies for applications by banks looking to meet recent FFIEC guidelines on protecting 'high risk' consumer transactions.
VeriSign says 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.
Nico Popp, vice president, authentication services, VeriSign, says: "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."
He says the Snapcentric system is available for immediate Beta testing, with general availability expected within the next 60 days.