ThreatMetrix raises $12.1 million to expand anti-fraud service

Firm that offers cloud-based anti-fraud service plans to grow with investment from Tenaya Capital.

Elinor Mills Former Staff Writer
Elinor Mills covers Internet security and privacy. She joined CNET News in 2005 after working as a foreign correspondent for Reuters in Portugal and writing for The Industry Standard, the IDG News Service and the Associated Press.
Elinor Mills

Anti-fraud services company ThreatMetrix announced today it is getting $12.1 million in Series C financing from Tenaya Capital, formerly Lehman Brothers Ventures.

ThreatMetrix will use the money for general operating capital and expansion of its device-profiling business, said Chief Executive Reed Taussig.

The Los Altos, Calif.-based company offers e-commerce companies a cloud-based service that helps authenticate customers to prevent account hijacking and fraudulent transactions on banking sites, Web retail stores, social networks, and dating and gaming sites.

ThreatMetrix creates profiles of devices accessing Web sites and services without the need for personally identifiable information from consumers and combines that with information about accounts provided by its customers to create risk assessments in real time.