Arcot Makes Fraud Prevention Network Available to RiskFort Customers to Share Fraud Data

Stops Fraud Faster with DeviceDNA and Gray List Technology
SUNNYVALE, Calif.--(Business Wire)--
Arcot, leader in online fraud prevention, strong authentication and e-Document
security, today announced that it is making its vast fraud prevention data
resources available as the Arcot Fraud Prevention Network (AFPNet). In addition,
Arcot will use its DeviceDNA and DeviceID technology as key building blocks for
the AFPNet providing tagless and tagged machine identification that will allow
Arcot to link potentially fraudulent behavior to the individual device. Devices
suspected to be involved with fraudulent activity will be placed on the AFPNet
"gray list" and members can use that information instantaneously to quarantine
fraudulent behavior. The Arcot Fraud Prevention Network monitors, tracks,
quarantines, and blocks suspicious activity automatically across the entire
community allowing all of its member organizations to stop fraud faster. Privacy
is preserved for both users and organizations and the additional protection is
transparent to consumers.

There is no doubt that online identity fraud is growing. Cyber crime networks
around the world are collaborating to enhance their capabilities to steal
valuable online credentials and information. While individual organizations
implement anti-fraud solutions and thwart some attacks, the fraudsters repeat
the same attacks across other organizations and channels, taking advantage of
the lack of data sharing between organizations.

Arcot uses a consolidated view of the entire network to detect and block
suspicious behavior at the individual machine, IP address and payment card
levels. Arcot DeviceDNA uniquely identifies individual machines by creating a
tagless identifier for the machine. DeviceDNA is associated with individual
computers, mobile phones and PDAs and is derived by combining a number of
identification factors on each device. Suspicious devices can be tracked and
added instantaneously to the Arcot Gray List. All Arcot Fraud Prevention Network
members are automatically notified of suspicious and confirmed fraudulent
devices, IP addresses, card numbers or merchant IDs. Members can use this
information to prevent fraudulent transactions or account access. Because the
network sees a variety of channels and industry verticals, trends in one channel
or industry can be used to prevent fraud in the others.

"Fraudsters often rapidly propagate very similar attacks against multiple
institutions.If these attacks could be detected earlier through real-time shared
information, fraud could be significantly reduced.The Arcot Fraud Prevention
Network addresses this opportunity by aggregating real-time information about
suspicious activity and enabling immediate action to be taken when fraud is
detected anywhere among participating organizations in the network," remarked
Scott Loftesness of Glenbrook Partners, a Menlo Park, California-based payments
consulting firm.

The AFPNet continuously monitors online transactions and online access whether
successful, failed, or abandoned. Using analytic techniques AFPNet generates
suspicious end point lists whose relevance changes over time. AFPNet scans for
suspicious behavior within and across all participating organizations to
identify criminal activity so that a fraud attempt at one organization can put
other organizations on alert before they are hit with the same fraud. The AFPNet
can also incorporate information from other online and offline fraud prevention
tools. Case management tools allow a fraud analyst to identify suspicious
activity, update risk policies, incorporate fraud data into other applications
and provide truth data back into the network.

"Arcot has been in the business of helping our customers fight fraud for nearly
12 years. Our hosted service contains a wealth of information about internet
attacks and we have used that data to improve our products," said Ram
Varadarajan, President and CEO of Arcot. "Our customers have urged us to expand
our offering by sharing data across a broader community. The Arcot Fraud
Prevention Network extends the capabilities of Arcot authentication services by
sharing the data among its members and automatically implementing community-wide
fraud prevention measures."

The Arcot Fraud Prevention Network is open to all Arcot RiskFort risk-based
authentication customers. Members agree to permit Arcot to collect and share
transaction data anonymously, supply truth data and allow individual policies
and rules to apply across the network. There is a fee for member participation.

About Arcot

Arcot authentication and digital signing solutions make Web transactions and
online access safe for millions of consumer, enterprise and e-Commerce users.
With Arcot solutions, organizations can transparently deploy stronger
authentication without changing user behavior or deploying expensive hardware.
Arcot fraud prevention, strong authentication, and e-Document security solutions
are delivered in-the-cloud or on-premise providing the right balance of cost,
convenience and strength.

For more information, visit http://www.arcot.com.

Arcot Systems, Inc.
Carol Alexander, VP Marketing, +1-408-969-6174
carol@arcot.com

Copyright Business Wire 2009