IBM (NYSE: IBM) is taking action on two fronts in attempts to combat cyberattacks.
Big Blue said Thursday it is buying fraud protection software maker Trusteer, which has offices in Israel and Boston.
IBM also said it is opening a “Cybersecurity Software Lab” in Israel.
Financial terms of the Trusteer acquisition were not disclosed.
However, Bloomberg News reported that IBM is paying more than $800 million for the company.. The startup, backed by Israeli security entrepreneur Shlomo Kramer, aims to spot threats conventional desktop programs miss, such as malicious software on smartphones. IBM said Trusteer, which has offices in Tel Aviv and Boston, serves seven of the 10 largest U.S. banks.
IBM and Trusteer workers will staff the new lab,
“IBM … will combine its Israeli software security research and development team along with Trusteer’s research and development team in Tel Aviv to form an IBM Cybersecurity Software Lab,” Big Blue said in a statement. “This lab will focus on mobile and application security, as well as advanced fraud and malware detection. Trusteer’s research and global expertise in fraud intelligence and malware helps provide organizations with protection in a constantly evolving threat landscape. This is done by analyzing data gathered from more than 30 million endpoints, using data analytics to develop real-time, actionable intelligence that will be incorporated into IBM’s security products and services.”
Trusteer software can identify security threats that can be missed by traditional security software.
“Trusteer’s expertise and superior technology in enterprise endpoint defense and advanced malware prevention will help our clients across all industries address the constantly evolving threats they are facing,” said Brendan Hannigan, general manager for the Security Systems Division at IBM. “Together with IBM’s capabilities in advanced threat detection, analysis and remediation, we will now be able to offer our clients several additional layers of defense against sophisticated attackers.”
Inside the Deal
IBM cited three major factors in making the deal:
- Security as a Service Delivered through the Cloud
“Cloud-delivered security solutions by Trusteer will complement more than 100 Software as a Service (SaaS) solutions offered by IBM. In addition to traditional IT solutions, Trusteer leverages SaaS architecture to enable protected PCs, desktops, smartphones and tablets to rapidly adapt against emerging threats. Because Trusteer software can be delivered through the cloud, organizations can receive accurate, real-time updates on malicious activities and the latest threats, better protecting data from fraud and compromise.”
- Comprehensive Counter-Fraud and Advanced Persistent Threat (APT) Protection
“Trusteer’s cybersecurity protection can scale to help protect tens of millions of endpoints, including smartphones and tablets. One of the primary targets of malware attacks are consumer endpoints. Malware installed on a bank customer’s PC or smartphone, for example, can generate fraudulent transactions. Additionally, malware and phishing can help attackers steal credentials and other personal data. Financial malware and fraudulent activity can be identified and removed using solutions from Trusteer.
“The acquisition of Trusteer will complement IBM’s advanced portfolio of counter- fraud software and services, including QRadar, i2, SPSS, InfoSphere and Enterprise Content Management. These capabilities offer predictive, content and investigative analytics to help prevent and solve cases of fraud for private and public sector organizations.”
- Helping to Secure Mobile Transactions
“Of the top 25 US financial institutions, about half are offering mobile person-to-person transfers and mobile remote deposit capabilities, a figure that has more than doubled since 2011. This steady increase in adoption is putting the mobile channel in the crosshairs of account takeover attacks that are launched using credentials stolen from customers via phishing and malware attacks. Trusteer can help provide account takeover prevention, compromised device detection, complex device fingerprinting and a global fraudster database.”
IBM employs some 10,000 people across North Carolina.
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