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Press Release |
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VeriSign introduces Fraud Detection Service; Acquires Snapcentric
VeriSign Announces New
Service To Protect Against Online Identity Theft
Acquisition of Snapcentric Anchors VeriSign Fraud Detection Service
MOUNTAIN VIEW, CA—February 10, 2006 --VeriSign, Inc. (Nasdaq:
VRSN), the leading provider of intelligent infrastructure services for
the Internet and telecommunications networks, today announced the VeriSign
Fraud Detection Service, a new solution that forms part of VeriSign’s
overall layered authentication solution targeted at preventing online
identity theft. In support of this new service, VeriSign has also
reached a definitive agreement to acquire Snapcentric, Inc, a provider
of online fraud detection solutions using advanced anomaly detection
technology. The newly acquired technology will be a key addition
to VeriSign’s suite of authentication solutions, providing an invisible
layer of protection against online fraud.
Consumer banks and other financial institutions are
struggling to comply with recent FFIEC guidelines, which state that
user names and passwords are no longer sufficient for high-risk transactions.
The VeriSign Fraud Detection Service will complement VeriSign’s existing
authentication offerings to help banks achieve FFIEC compliance by authenticating
consumers based on behavioural patterns.
The VeriSign Fraud Detection Service will take a self-learning
approach to fraud detection, adapting to customer usage habits unique
to that individual. Using pattern recognition technology, it flags potentially
fraudulent activities based on known types of fraud and behaviours not
associated with the user. Because the service is self-learning,
it can adapt to changing criminal behaviour without manual intervention.
VeriSign believes that this unique capability differentiates the Snapcentric
technology from all competitive solutions in the marketplace.
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.
For high risk transactions, the VeriSign Unified Authentication Service
provides a wide range of two-factor authentication devices to verify
a user’s identity. In combination, these services provide a comprehensive
approach to address online banking and e-commerce authentication needs.
A July 2005 report issued by Gartner, Inc titled:
“Criminals Exploit Consumer Bank Accounts and ATM System Weaknesses”
found that an estimated 1.9 million online adults were victims of illegal
checking account transfers, resulting in nearly $3.5 billion in losses
or an average of just a little more than $1,800 per incident, with banks
absorbing most of these losses.
“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,” said Nico
Popp, vice president, Authentication Services, VeriSign. “The
introduction of the VeriSign Fraud Detection Service is a strategic
move that provides VeriSign with advanced technology to help these institutions
achieve compliance in a cost effective and non-intrusive way.”
The VeriSign Fraud Detection Service is available
for immediate Beta testing, with general availability expected within
the next 60 days.
The acquisition of Snapcentric is being accounted
for as a purchase transaction and is valued at $12 million. Revenue
and earnings contributions from the acquisition will not be material
to VeriSign’s 2006 financial results. All of Snapcentric’s employees
in the United States and Israel will become part of VeriSign Security
Services. The transaction is expected to close later this quarter.
About VeriSign
VeriSign, Inc. (Nasdaq: VRSN), operates intelligent infrastructure
services that enable and protect billions of interactions every day
across the world’s voice and data networks. Additional news and information
about the company is available at www.verisign.com.
Trademarks
VeriSign and other trademarks, service marks and logos are registered
or unregistered marks of VeriSign, Inc. and its subsidiaries in the
United States and in foreign countries. Copyright © 2006 VeriSign, Inc.
All rights reserved.
For more information, contact:
VeriSign Media Relations:,Brendan Lewis, brlewis@verisign.com,
+650-426-4470
Dan Leach, on +44 207 413 3000
VeriSign Investor Relations: Tom McCallum, tmccallum@verisign.com,
650-426-3744
Statements
in this announcement other than historical data and information constitute
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. These statements involve risks and uncertainties that could
cause VeriSign's actual results to differ materially from those stated
or implied by such forward-looking statements. The potential risks and
uncertainties include, among others, the uncertainty of future revenue
and profitability and potential fluctuations in quarterly operating
results due to such factors as the inability of VeriSign to successfully
market its services, including the Snapcentric technology branded as
the VeriSign Fraud Detection Service; customer acceptance of the services
as provided by VeriSign; the risk that expected economies in servicing
customers will not materialize; the incurrence of unexpected costs integrating
the assets; increased competition and pricing pressures; and the inability
of VeriSign to successfully develop and market new products and services
and customer acceptance of any new products or services. More information
about potential factors that could affect the company's business and
financial results is included in VeriSign's filings with the Securities
and Exchange Commission, including in the company's Annual Report on
Form 10-K for the year ended December 31, 2004 and quarterly reports
on Form 10-Q. VeriSign undertakes no obligation to update any of the
forward-looking statement after the date of this press release.
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