FFIEC News

Digital Envoy Acquires Transaction Monitoring Technology Company Cydelity

(March 08, 2007)--With consumer fears driving increased security for the online channel, organizations will add additional layers of security such as transaction monitoring to most effectively protect online users. Digital Envoy’s acquisition of Cydelity, a California-based technology provider specializing in real-time transaction monitoring, enables organizations in all industries to protect sensitive online data and online financial transactions, closing a gap that exists between front-end access authentication and back-end transactional activity monitoring. By linking its powerful and robust access behavior profiling technology to Cydelity’s transaction monitoring, Digital Resolve creates the most comprehensive risk-based authentication solution available.

The Cydelity product line, including its patent-pending eSentry transaction monitoring solution, will be marketed by Digital Resolve, a business unit of Digital Envoy, Inc., which already offers the award-winning Fraud Analyst risk-based authentication technology platform as well as other leading anti-fraud tools.

Combining what Digital Resolve already offers – robust, patent-pending user behavior profiling and risk-based authentication – with Cydelity’s data collection and analysis for user activities and transactions creates a solution to further improve upon the 90 percent fraud reduction rate already experienced by current Fraud Analyst customers. The combined transaction monitoring and behavioral profiles will indicate signs of fraud events happening across multiple user sessions and give real-time detection and intervention on risky transactions, both at the individual and enterprise levels.

According to George Tubin, research director, delivery channels, at TowerGroup Inc. in Needham, Mass., as fraud continues to migrate and change, the ever-increasing degree and nature of fraud attacks should drive companies to look deeper than initial log-in authentication.

“Banks should treat the initial login as a high-risk transaction and use multifactor authentication for all online account access. But the initial authentication should not be the end of it,” said Tubin3. “Certainly a bank can improve its security by continuing to monitor the online session for fraudulent behavior. Because no authentication approach is 100 percent effective, session monitoring is an approach that can potentially detect fraud by identifying behaviors that typically lead to fraud (e.g., login, change password, set up new bill payee, make payment to new bill payee, logout) or behavior that is uncharacteristic for a specific user based on the individual's transaction history.”

Digital Resolve will immediately offer a combined Fraud Analyst and eSentry solution in addition to offering each solution as a standalone. This will allow companies to quickly deploy fraud protection and leverage advanced research, analysis and reporting tools at both the access and transactional levels. Due to the extensible nature of Digital Resolve’s Fraud Analyst platform, the company expects to quickly incorporate eSentry, offering the industry’s only integrated, modular platform for online fraud detection and prevention.

Digital Envoy will retain the Cydelity staff and offices in California, further strengthening the company’s West Coast presence. Additionally, Cydelity brings over a number of financial and service provider customers.

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