SR 20 fastest Growing Security Companies 2016

Fraud Prediction with Unparalleled Accuracy: NuData Security


“NuData Security predicts fraudulent transactions by identifying good users from bad actors by user behavior online.”

With the increasing number of data breaches, identity theft and malware are on the rise. Data breaches allow hackers to create online shopping or banking accounts with stolen identities or break into, accounts owned by legitimate users with stolen passwords. The traditional approach to fraud prevention is to assess transaction values for unusual activity, but if hackers have access to legitimate information, they sneak under the radar of traditional fraud detection. As companies attempt to tighten their fraud checks, they risk rejecting orders placed by good users, losing business and customer trust. Called a “false positive” for fraud, these cost companies $118 billion dollars a year compared to the $9 billion in actual fraud.

Founded in 2008, Vancouver-based NuData Security offers a new way to protect companies and customers by predicting and preventing online fraud. Using passive biometrics and behavioral analytics, companies can protect their business from brand damage and financial loss caused by fraudulent or malicious attacks as well as offering a streamlined, secure experience for their good users. The company specializes in understanding how users behave online to verify that it is the real user, or flag that a fraudster malware or other high-risk action is at play. NuData analyzes and scores billions of risk events (such as login, or making a purchase) per year and services some of the largest ecommerce and web properties around the globe to protect them from threats like automated account creation, manual account takeover and transaction fraud. By learning how users behave at new user registration, login and transaction pages of a website, NuData Security is able to detect behaviors that indicate fraud will occur in the future – making fraud prediction a reality.

Verifying the Good User behind the Device
NuData Security is differentiated by its focus on user behavior and highly accurate user identification tools as opposed to a focus on individual financial transactions. This is achieved through four distinct capabilities that work closely together to build a complete, nuanced picture of the user.

Connection and Location: Are the users trying to make their browsing anonymous? Are they trying to fake their country of origin through a proxy?Or is this one of their normal locations such as home or work?

DeviceID: Is the device really an iPhone or a server pretending to be 500 iPhones? Has the device been used in fraud before? How many devices does the user own?

Behavioral Biometrics: How does the user interact with their device? Is their typing speed and pattern consistent with how they behave with this device at this location? If they are on mobile, how are they holding the device?

Behavioral Analytics: What is the user trying to do and how do they do it? When logging in for example, did they browse directly to the general domain name, a specific link, or click a button? Did they type their password with a consistent word per minute (unusual) or were there small deviations in their typing speed (normal)?

NuDetect is underpinned by Machine Learning, which analyzes minute patterns of behavior across billions of user interactions in real-time, giving unparalleled accuracy knowing who the user truly is behind the login. Further, NuDetect is the only solution that operates from the moment of account creation all the way to the transaction, so it can detect whether a change is a potentially fraudulent or just part of natural behavior changes over time.

Clientele Territory
NuData’s targeted market includes ecommerce, financial services, healthcare, online gaming and digital goods businesses. The company’s NuDetect solution is currently in use with many of the Fortune 50 companies in the world, and runs on three of the top ten ecommerce companies in the world. The system has profiled approximately 2.2 billion users to date.

Clients Speak
“Within the first week, NuDetect discovered an exploit that had already cost us over $100,000.” – An International Digital Goods Firm

“We rely on NuData to protect us from fraudulent activity but we see as much value from the trust NuDetect establishes between us and our user community.” – A Global Technology Company

NuData Security Co-Founders 

Michel Giasson, CEO
Michel is responsible for the overall strategy and day-to-day operations. Over the last 15 years he has been involved with technology and entertainment companies in various capacities ranging from Advisory Board member, Director, Business Development, Business Affairs, and CEO. Michel was previously a partner in a major law firm where he founded and led the Technology Group and recently was a finalist. Michel recently was a finalist for Ernst & Young’s Entrepreneur of the Year Award.

Christopher Bailey, CTO Christopher is responsible for the strategic vision and direction of technology solutions. At the age of 19, he founded H2O, a developer of video game products for top tier publishers such as THQ, Nintendo, and Sony. He was a founder of Secure Networks, a web security company acquired by Network Associates. He was also an investor and early participant in Security Focus which was acquired by Symantec Corp in 2002. Prior to co-founding NuData Security, Christopher was involved in several other software ventures in consulting, contract programmer, and management roles.

 “We harness the power of passive biometrics and behavioral analytics to accurately verify your good and bad users online.”