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
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 behavioral 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 behaviors not
associated with the user. Because the service is self-learning,
it can adapt to changing criminal behavior 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 P. Lewis, brlewis@verisign.com,
650-426-4470
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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