The parties signed the agreement in September 2005, and the pilot implementation commenced in the first quarter of 2006. Additional details of the agreement were not disclosed.

Direct Alliance will use the technology in connection with its hosted e-commerce environment, which supports online sales, order processing and order fulfillment for select Direct Alliance clients, including several leading consumer electronics providers. After evaluating a number of available technologies, Direct Alliance elected to pilot FraudNet to help build efficiencies into the investigative process and reduce false positives while not impeding the user experience in any way.

"FraudNet is an important piece of our security puzzle," said Darren Skarecky, vice president of finance for Direct Alliance. "The world of high-ticket electronics is a prime target for fraud, while high abandonment rates caused by credit department delays can be a sales barrier. Solutions that take some of the heavy lifting off of our investigative teams without impacting the user experience are critical."

FraudNet leverages several patent-pending technologies to enable investigative teams to focus on suspect orders while significantly reducing false positives: EZKeys detects strings of keystrokes with low typing effort; DataSpider links seemingly unrelated fraudulent orders based on common data elements; and TimeDiff Linking detects repeat offenders from the same PC and quickly contains threats posed to more than one transaction. Combined to calculate more than 260 separate algorithms, the unique technology in FraudNet has been proven to deliver unprecedented accuracy rates in the risk management and fraud detection industry.

"We look forward to working with Direct Alliance to help further secure the online environments of its clients," commented Ori Eisen, founder and CEO of The 41st Parameter. "We are confident in FraudNet's ability to help support Direct Alliance's online business by deterring fraudsters and protecting the user experience."