ArcSight Announces FraudView to Detect and Prevent Online Transaction Fraud

ArcSight FraudView, an appliance that aids in detecting and preventing financial fraud. ArcSight FraudView connects multiple pieces of transaction and account information to evaluate the risk of a financial transaction as it occurs.

New Fraud Appliance Generates Multi-factor Risk Scores as Transactions Occur

ArcSight Protect ’09, Washington, DC – September 15, 2009 – ArcSight, Inc. (NASDAQ: ARST), a leading global provider of security and compliance management solutions that intelligently identify and mitigate cyber threat and risk for businesses and government agencies, today announced ArcSight FraudView, an appliance that aids in detecting and preventing financial fraud. ArcSight FraudView connects multiple pieces of transaction and account information to evaluate the risk of a financial transaction as it occurs.

Unlike legacy fraud prevention technologies, ArcSight FraudView can correlate activity across multiple banking channels to aid in the detection of sophisticated fraud schemes that span online, ATM, telephone, and bank branch activity. Cyber fraud affects many critical industries, causing hundreds of millions of dollars of loss each year.

"As the amount of money flowing through online transactions rises, online criminals are becoming more aggressive and more sophisticated,” said Adel Melek, Partner, Deloitte & Touche LLP. "To ensure trust in cyber transactions, organizations, especially banks and financial institutions, require effective, holistic and sophisticated monitoring controls for detecting and responding to online fraud."

“Existing technologies are not designed to address the breadth of the cyber fraud problem, and without a real solution, financial organizations face persistent threats to security, increased costs, and loss of trust,” said Jon Oltsik, Principal Analyst for Enterprise Strategy Group. “Financial institutions often use a variety of technologies to detect fraud, but they need a way to connect the dots across these technologies and the channels they monitor.”

ArcSight FraudView works by collecting transaction, account, and other information from a variety of systems – including other fraud detection technologies - and then applies three types of analyses to detect fraud:

Pattern Recognition – ArcSight FraudView examines large sets of transactions to discover statistically significant activity patterns that are linked to fraudulent or suspicious transactions. It then automatically creates new detection rules based on patterns found in order to block new fraud events or flag suspicious events for further review.
Fraud-Focused Correlation – ArcSight FraudView generates a transaction risk score based on correlating across multiple risk areas, including: device, account, transaction and destination risk.
Automatic Account Escalation – ArcSight FraudView can aggregate the results of multiple risk rules to flag a particular account for closer observation.

ArcSight FraudView can also aggregate information from a variety of risk and fraud scoring products, to create a single, high-level risk score of any transaction, as it occurs. As a result, banks can better leverage their investments in legacy fraud detection technologies.

“We are seeing the rise and growth in sophistication of threats to sensitive financial information, infrastructure and operations. Organizations need advanced technology available to head off potential risk,” said Reed Henry, senior vice president of marketing, ArcSight. “ArcSight FraudView is already being used to detect wire fraud in wholesale banks and ‘pump and dump’ stock schemes in retail brokerages. In these cases, the combination of multiple bits of information into a single risk score provided by ArcSight FraudView aids the institution in preventing a fraudulent transaction from occurring.”

ArcSight FraudView is a key component in the ArcSight SIEM Platform. It joins ArcSight Logger and ArcSight IdentityView as proven solutions for preventing cyber war, cyber theft, and cyber fraud.

Pricing and Availability

ArcSight FraudView will be demonstrated at ArcSight Protect ’09, the ArcSight Worldwide User Conference in Washington DC from September 13-16, 2009 and is available now. Please visit http://www.arcsight.com/products to learn more about ArcSight FraudView.

About ArcSight

ArcSight (NASDAQ: ARST) is a leading global provider of security and compliance management solutions that protect businesses and government agencies. ArcSight identifies, assesses, and mitigates both internal and external cyber threats and risks across the organization for activities associated with critical assets and processes. With the market-leading ArcSight SIEM platform, organizations can proactively safeguard their assets, comply with corporate and regulatory policy and control the risks associated with cyber-theft, cyber-fraud, cyber-warfare and cyber-espionage. For more information, visit www.arcsight.com.

Forward Looking Statements

This news release contains forward-looking statements, including without limitation the belief that the sophistication of threats to sensitive financial information, infrastructure and operations will continue to rise and grow, and that organizations will need advanced technology available to head off potential risk. These forward-looking statements are subject to material risks and uncertainties that may cause actual results to differ substantially from expectations. Investors should consider important risk factors, which include: the risk that the increase in cyber fraud, if any, does not result in an increased demand for our solutions; the risk that organizations will not perceive a rise or growth in sophistication of threats to sensitive financial information, infrastructure and operations or a need for advanced technology such as our products to address them; the risk that competitors may be perceived by customers to be better positioned to help handle cyber fraud threats; and other risks detailed under the caption “Risk Factors” in the ArcSight Quarterly Report on Form 10 Q filed with the Securities and Exchange Commission, or the SEC, on September 9, 2009 and the company’s other filings with the SEC. You can obtain copies of the company’s Annual Report on Form 10 Q and its other SEC filings on the SEC’s website at www.sec.gov.