rsa spins off fraud and risk intelligence unit as outseer

Outseer Launches as Independent Fraud and Risk Intelligence Provider

RSA Security has established Outseer as a new, independent entity dedicated to combating fraud. This move concentrates resources on payment security solutions in response to a significant surge in fraudulent activity.

Leadership and Focus

Reed Taussig, formerly head of RSA’s Anti-Fraud Business Unit and previously CEO of ThreatMetrix, will lead Outseer as its CEO. The company’s primary objective will be the development and provision of fraud detection, management, and payments authentication services.

Core Services Inherited from RSA

Outseer will continue operating within the RSA framework and will integrate three key services currently utilized by over 6,000 financial institutions. These include:

• Outseer Fraud Manager (previously RSA Adaptive Authentication), a service for risk-based account monitoring.
• 3-D Secure (formerly Adaptive Authentication for eCommerce), a solution for authenticating card-not-present and digital payments.
• FraudAction, a system designed to identify and dismantle phishing websites, malicious applications, and fraudulent social media profiles.

Data and Technology

The company’s product suite is underpinned by substantial investments in data science. This includes a comprehensive global network of verified fraud and transaction data, alongside a risk engine that reportedly achieves a 95% fraud detection rate.

CEO Statement

According to Taussig, “Outseer represents the culmination of years of innovation in anti-fraud and payments authentication. As the digital economy expands, our mission to protect against transactional fraud is increasingly vital.” He further stated that Outseer’s role in supporting the global economy will become even more significant as digital businesses continue to grow.

RSA’s Future Direction

RSA will now concentrate on integrated risk management and security offerings. This includes Archer for risk management, NetWitness for threat detection and response, and SecureID for identity and access management (IAM) capabilities.

Recent Acquisition and Market Context

This spinout follows closely after private equity firm Symphony Technology Group (STG) acquired RSA Security from Dell Technologies for over $2 billion. STG had previously purchased FireEye’s product business for $1.2 billion. Dell initially acquired RSA as part of its EMC acquisition in 2016.

Rise in Online Fraud

The emergence of Outseer coincides with a dramatic increase in online fraud, exacerbated by the COVID-19 pandemic. The Federal Trade Commission reported over 217,000 coronavirus-related fraud reports since January 2020, resulting in losses totaling $382 million.

The Consumer Financial Protection Bureau also recorded 542,300 fraud complaints in 2020, a 54% increase compared to 2019.

Focus on EMV 3-D Secure 2.x

RSA indicated that the pandemic-driven surge in fraudulent transactions will prompt Outseer to prioritize innovation in payments authentication. This includes alignment with the EMV 3-D Secure 2.x payment standard and the integration of new technologies within the payments and commerce landscape.

Broader Impact of Fraud Prevention

Taussig emphasized that Outseer’s purpose extends beyond simply eliminating payments and account fraud. He noted that fraudulent transactions frequently serve as a precursor to more serious crimes, such as drug and human trafficking, and terrorism. Outseer aims to contribute to global safety by addressing these underlying issues.

Financial and Staffing Details

The valuation of Outseer and specific headcount figures were not disclosed in the announcement. A request for further information from TechCrunch has not yet received a response from Outseer.