New Aberdeen Research: Organizations Plan to Ramp up Security Technology Use to Protect Customers Online in 2008

Sunnyvale, California -- January 9, 2008 — The use of layered security and software-based authentication to protect online users will grow rapidly in 2008, according to new research by Aberdeen Group. The number of enterprises using digital watermarks is expected to double in 2008 from its current level to 22%. Rapid growth is also expected for risk-based authentication, from 20% to 32%, and transaction monitoring, from 49% to 68%, based on plans reported by banks, retailers, telecom and other organizations participating in the research.

The new Aberdeen report, "Securing the Online User Experience – Building User Confidence and Stopping Fraud" details the strategies, capabilities and technologies used by the organizations doing the best job at preventing online fraud and building user confidence. A clear finding is that the best-in-class enterprises have already moved beyond passwords, and many more firms plan to take action in 2008. The results are consistent with what Arcot sees happening in today’s market.

"Passwords are weak security; the problem is they are convenient and people know how to use them," said Carol Stone Alexander, vice president, marketing for Arcot, a leader in software-based authentication. "This research confirms what we’re hearing from banking and other industries: With billions of passwords in daily use, the only practical solution is to make passwords strong without changing the user experience. This study shows we are on the right track."

The study used quantified measures of business results to rank best-in-class, industry average and laggard groups. Then, Aberdeen compared their practices and use of enabling technologies for securing user online experiences, including implementation plans for 2008. The topic proved to be very timely across all industry sectors.

"Everyone we spoke to – at banks, service providers, e-tailers and consultancies – was very, very apprehensive about the increase in the volume of and sophistication of fraud attacks," said Carol Baroudi, research director in the IT Security practice at Aberdeen. "Yet nearly all were even more concerned about account holder and potential account holder reticence. Survey respondents said that confidence has been steadily declining over the last seven years, and as a result, the cost of doing business online is climbing."

Through an arrangement with Aberdeen, Arcot is making the $399 report available for free.

For more information visit www.arcot.com.