Guardian Analytics, a provider of predictive analytics-based fraud prevention software, has raised USD9m in funding led by Sutter Hill Ventures with participation by existing investor Foundation Capital.
The series C funding will be used to accelerate product innovation and capitalise on the growing demand for fraud prevention solutions.
2009 saw record highs in online banking cyber attacks and fraud losses as criminals directly assaulted existing online security solutions, sparking both high-profile lawsuits and debates in Washington over business protection and security regulations.
To stem the tide of losses, industry experts are recommending that financial institutions take a new approach to fraud prevention and monitor customer behaviour to proactively prevent fraud.
Guardian Analytics’ flagship software, FraudMap, is the industry’s first fraud prevention solution designed from the ground up using predictive behavioural analytics.
"Banks and credit unions are at war with cyber-criminals and need solutions that can protect them against ever-evolving threats," says Greg Sands (pictured), managing director, Sutter Hill Ventures. "Guardian Analytics is solving this escalating industry problem with a clearly differentiated and proven approach. Their growing customer base is ecstatic with the results and we see 2010 as a breakthrough year for the company."
"We believe the best way for financial institutions to win the war on cyber-crime is by using the one strategic advantage they have – deep knowledge about their customers’ behaviours. Using that notion as the foundation of our solution development has driven our success from day one and is the core of our vision for the market," says Terry Austin, chief executive, Guardian Analytics. "This infusion of capital will allow us to take our market presence to the next level and will fuel our overall awareness, customer acquisition and product innovation efforts."
In conjunction with the funding, Sands is joining the board of directors at Guardian Analytics.