RSA Security has transformed its fraud and risk intelligence business into a standalone company called Outseer that will double up payment security tools amid an “unprecedented” increase in fraudulent transactions.
Led by CEO Reed Taussig, who was appointed head of RSA’s anti-fraud business unit last year after previously serving as CEO of ThreatMetrix, the new company will focus solely on detecting and managing fraud and fraud. payment authentication services.
Outseer will continue to operate under the umbrella of RSA and inherit three core services, which are already used by more than 6,000 financial institutions, from the company: Outseer Fraud Manager (formerly RSA Adaptive Authentication), an account monitoring service risk-based; 3-D Secure (formerly Adaptive Authentication for eCommerce), a cardless and digital payment authentication mapping service; and FraudAction, which detects and removes phishing sites, questionable apps and fraudulent social media pages.
Outseer says its product portfolio is backed by significant investments in data and science, including a global network of verified fraud and transaction data, and a risk engine that the company says provides high rates of 95% fraud detection.
Commenting on the spin-out, Taussig said, “Outseer is the culmination of decades of scientific innovation in anti-fraud and payment authentication solutions. As the digital economy continues to deepen, Outseer’s mission to free the world from transactional fraud is essential. Our role as a revenue generator for the global economy will only grow stronger as each digital business continues to grow. “
RSA, meanwhile, will continue to focus on integrated risk management and security products, including Archer for risk management, NetWitness for threat detection and response, and SecureID for identity and security management capabilities. access (IAM).
The split comes less than a year after private equity firm Symphony Technology Group (STG), which recently bought FireEye’s product business for $ 1.2 billion, acquired RSA Security from Dell Technologies for more. of $ 2 billion. Dell had previously acquired RSA as part of its takeover of EMC in 2016.
It also comes amid a huge increase in online fraud fueled by the COVID-19 pandemic. The Federal Trade Commission said in March that more than 217,000 Americans had filed a coronavirus fraud report since January 2020, with losses from COVID-related fraud amounting to $ 382 million. Likewise, the Consumer Financial Protection Bureau handled 542,300 fraud complaints in 2020, an increase of 54% from 2019.
RSA said that with the COVID-19 pandemic fueling “unprecedented” growth in fraudulent transactions, Outseer will focus its innovation on payment authentication, matching with the EMV 3-D Secure 2 payment standard. .x and the integration of new technological integrations in payments. and the business ecosystem.
“Outseer’s raison d’être is not only focused on eliminating payments and account fraud,” added Taussig. “These fraudulent transactions are often the pretext for more sinister drug and human trafficking, terrorism and other nefarious behavior. Outseer has the ability to help make the world a safer place.
Information on Outseer’s valuation was not disclosed and headcount numbers were not mentioned in the split announcement. Outseer did not immediately respond to TechCrunch’s request for more information.