ThreatMetrix Acquires TrustDefender to Fraud-Proof the Cloud

As companies move data from behind firewalls and into the cloud and employees increasingly use their own mobile devices to access that data, security must adapt to meet the demands of a new era. To increase its arsenal in the cyber security war, ThreatMetrix has acquired TrustDefender, a detector of malware based attacks, as first reported by TechCrunch.

The move enables ThreatMetrix to offer integrated fraud protection that verifies the identity and integrity of any device attempting to access secure data. Any endpoint has been compromised through malware or identify theft locks the doors up tight.

TrustDefender’s technology will enable ThreatMetrix to offer intelligent device identification and malware detection, commonly referred to as Man in the Browser detection or secure browsing, explained Reed Taussig, CEO of ThreatMetrix. “It’s something that is needed and is obvious to all of our customers,” Taussig said.

Malware detection is unable to identify hidden proxies, language mismatches, velocity errors, cookie copying and Man in the Middle Attacks, yet intelligent device identification can, Taussig explained. At the same time, intelligent device identification cannot recognize the presence of malware on a device. The acquisition allows ThreatMetrix to offer both, locking down both the front and the back doors of devices.

“Accordingly, by combining these products into a single solution under a single user interface we are able to offer our customers a much better product, using a single rules interface and a single integration point at a significantly reduced cost of total ownership,” Taussig said. “We offer one purchase from one vendor with one support contract and one point of integration to solve what has been done in the past by multiple vendors.”

The deal, the exact numbers of which ThreatMetrix declined to disclose, was executed with a mix of cash and shares, essentially paid from revenue streams that enjoy a 300 percent annual growth rate, as well as a $12 million funding round the company received in October of 2010.

TrustDefender is conveniently located right next door to ThreatMetrix’s Sydney facility, which makes for easy integration. The acquired company also has two dozen reference able customers that allowed ThreatMetrix to fully vet the technology.

“After extensive review we felt that the TrustDefender product was highly competitive with a highly qualified team and that the fit from a philosophical and technical level was a good fit,” Taussig said.

TrustDefender had taken $16 million in funding from Nexbrix LTD in March of 2010.

A winner of both the 2011 Red Herring North America 100 and the 2011 Red Herring Global 100, ThreatMetrix uses a Global Device ID for real time proprietary data collection, scanning 15 million profiels per day for extensive analystics on 250 parameters. It then provides two device ID scores for the transaction, including an “Exact ID” to authenticate returning customers utilizing browser based cookies and LSOs, as well as a “Smart ID” to identify fraudsters using attribute matching independent of cookies, compiling both scores to validate results. The platform enables proxy piercing capabilities to determine the true IP.