Guardian Analytics Secures $4.5M For Fraud Protection

By Ty McMahan 10/1/2007

Guardian Analytics Inc. has secured $4.5 million to launch its software aimed at online fraud-prevention for financial institutions.

The Series B funding was led by Foundation Capital, the company's only institutional investor. The company has raised $5.75 million to date.

"The online fraud threat is growing and getting more sophisticated," Chief Executive Tom Miltonberger said. "It's more of an organized crime activity now than a hacker activity. Banks need to counter that just as they have done for years with offline accounts."

Miltonberger said the company uses sophisticated analytics to identify suspicious online behavior.

He said the company's product differs from competitors because it not only provides tools for authentication practices, but also advises institutions on how they should react to suspicious behavior. "The online channels are becoming more and more important for their business and they need to make sure their customers are secure when they go online," Miltonberger said.

Founded in 2005, the Los Altos, Calif.-based company will use the recent round of funding to introduce the product to the market. Miltonberger said the company has already acquired customers that will be announced at a later time. He declined to provide a valuation for the company.

http://www.guardiananalytics.com

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