ThreatMetrix, the provider of fraud prevention solutions that do not require personally identifiable information (PII), today announced that is has secured $12.1 million in financing in a Series C round led by Tenaya Capital.
This brings the total amount raised by the company to over $24Million with the current round to be used for general operating capital, expansion of our product offering, and sales and marketing.
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ThreatMetrix has strong Australian links. Its CTO and co-founder, David Jones, is Australian and investors CM Capital and TVP are both Australian venture capital firms that are represented on the ThreatMetrix board. In addition, all of the company’s non-US operations are run out of Sydney.
Over the course of the last 18 months the company has brought on board over 250 customers who are using ThreatMetrix’s Fraud Network to stop online fraud, to verify new accounts, authorize card-not-present payments and authenticate user logins for everyone from online retailers, to online dating site operators to online game providers.
ThreatMetrix does this by looking at identifying information about a user’s computer and network, rather than user themself, to identify whether or not the system trying to perform a certain task ought to be trusted or not.
The scale of Internet fraud is sizeable and growing by every measure. According to CyberSource’s 11th Annual Fraud Report, Internet retailers lost more than $3.3 billion to fraud last year and Javelin Strategy & Research 2009 Identity Fraud Survey Report stated that more than $48 billion was lost as a result of identity fraud.
It’s a massive problem and one that ThreatMetrix is approaching in a completely different way to many other competitors.