IBM plans to buy an Israeli security firm called Trusteer, which specializes in fraud prevention software for the financial industry. It will use the purchase to create a new cybersecurity lab in Israel, in addition to the research and development facilities it already has there.
Online fraud prevention is serious business these days – Easy Solutions picked up $11 million in funding to go further down this avenue just a few months ago. Trusteer, which has offices in Tel Aviv and Boston, serves a huge number of banks from around the world, including Bank of America and HSBC, as well as other firms with a financial angle, such as PayPal.
Trusteer’s web-based products are designed to detect malware and fraudulent account hijackings, while the company also provides enterprise endpoint security services and tools for securing mobile apps. It should be noted that IBM already offers fraud prevention products — this portfolio should now be strengthened particularly in the areas of web fraud, mobile transaction security and security-as-a-service.
According to a statement on Thursday, IBM’s new Israeli cybersecurity lab will comprise a couple of hundred IBM and Trusteer researchers who will focus on “advanced threat, malware, counter-fraud, financial crimes and mobile security solutions.”
The value of the transaction has not been disclosed, but TechCrunch quotes Israeli outlet Calcalist as saying it’s somewhere between $800 million and $1 billion.