September 9, 2013 Issue
The Most Powerful Name In Corporate News and Information
A Leading Cybersecurity Software Provider Focused on Fighting Online Identity Theft and Fraud Prevention, the Authenware Authentication System Solution Creates a Unique Personal Security Pattern that Recognizes Authorized Users and Bars Hackers
AuthenWare Corporation is a leading cybersecurity software provider focused on fighting online identity theft and preventing fraud. The Company's innovative, tokenless authentication system delivers strong security through a combination of keystroke dynamics, behavioral and environmental characteristics to authenticate users and minimize identity theft while providing real-time web fraud detection. The AuthenWare solution creates a unique personal security pattern that recognizes authorized users and keeps hackers out.
headquartered in Miami, FL. For more information, visit www.authenware.com.
Felix Racca is the CEO and cofounder of AuthenWare Corporation. He is responsible for leading the strategy and vision of AuthenWare, the world’s leading provider of keystroke biometrics.
Racca was previously the
founder of Fuego, a Business Process Management software company acquired by
BEA Systems in 2006. During his tenure at Fuego, he several positions,
serving as CEO, CMO, CVO and member of the board. BEA Systems was
subsequently acquired by Oracle in 2008.
Interview conducted by: Lynn
Fosse, Senior Editor, CEOCFO Magazine, Published – September 9, 2013
CEOCFO: Mr. Racca, what was the vision when you started AuthenWare?
Mr. Racca: The person that had the vision was Daniel Caselles who today is our CTO. He knew me because I was pretty well known for starting several software companies. About six years ago he came to me with this idea that security is going to be a big issue because of the growth of ecommerce and cyber transactions. The user ID and password are just not secure enough. It does not matter how complex you make the password - it is always vulnerable to Trojan attacks and key logging. He said, “I think we can do something really cool, which is to recognize people by the way they type their user ID and password.” Behavioral biometrics that identify who they are by how they behave. This behavior cannot be mocked or stolen. I liked the idea. We set out developing the product and bringing it to market.
CEOCFO: What is behavioral biometrics?
Mr. Racca: Behavioral biometrics works just like physical biometrics. It is based on science. AuthenWare’s algorithms apply mathematical and statistical percentages to unique and measurable characteristics of an individual and use these distinct characteristics as identification. In physical biometrics you look at unique characteristics of say a fingerprint. AuthenWare looks at unique characteristics of your typing rhythm and specific behaviors. The result is that you can give your user name and password out to a room full of strangers and our software will identify you as the owner of the credentials and the others as imposters. Users adopt this type of online security because the user logs in normally and authentication happens seamlessly in the background. This security is easier and more convenient for the user. Behavioral biometrics is as accurate as physical biometrics, but cannot be mocked or stolen. It is simple, easy-to-use and adheres to privacy and government regulations.
CEOCFO: What degree of accuracy are you able to provide? Is it one hundred percent?
Mr. Racca: AuthenWare’s accuracy rate is 99.8% that hackers will be detected. What this means is that if everyone in the world knew your user ID and password, (or if your password was stolen and published on the internet) only two tenths of a percent of the people would be able to access your account. There is no biometric; physical or behavioral, that can ever get to one hundred percent.
CEOCFO: Who is primarily using your services today? Is there a group, an industry or type of business that is more likely than others?
Mr. Racca: Yes. We basically focus on three verticals, Financial, Government and Gaming. Probably the most recurrent at this point are the financial institutions; mainly banks. Banks have the biggest problem with financial losses due to fraud. We can roll out AuthenWare to millions of users within a few weeks and the bank will begin to see the results immediately. The bank will know if someone is trying to hack a customer’s account in real-time, which will dramatically reduce the bank’s fraud losses. Most banks use AuthenWare in ebanking because of the great user experience. The second largest bank in Spain, BBVA, uses AuthenWare to authenticate over 100,000 employees when they use Google Apps. We have several applications with governments and we have a large interest in securing a company’s Virtual Private Network (VPN). Telefonica Germany is an example of this. Telefonica selected us in Germany to secure their VPN through which all of their vendors access Telefonica’s intranet and ERP and systems. Finally, we are finding a lot of traction in the gaming and gambling space. Identifying the gambler and protecting against underage gamblers are a big concern. In the future, the healthcare sector may be a growing opportunity, especially for HIPPA compliance.
CEOCFO: You have mentioned a number of international businesses or segments. Are countries outside of the US more likely to use your service? Is it just coincidental that you are getting a lot of traction there?
Mr. Racca: No. It was a strategy. We had very good relationships with several distributors in the international market. We chose to test, distribute and prove our product technology internationally before introducing it to the United States. We just recently signed an agreement with Unisys in the U.S. - which immediately started up a lot of activity and interest with U.S. Financial institutions. It will not take long before the U.S. market takes over the international.
CEOCFO: When a company is talking with one of your representatives; whether it is direct or indirect, what is the “aha moment”? When do they understand that you really can do this? What is the stumbling block or what is the enlightening moment?
Mr. Racca: That is a great question. The “aha moment”, is when they see a demo and they say “Wow!” It has a “wow factor”. “Wow, this is nothing like what we have tried before, but is it true?” Then we discuss our actual implementations and the results. One of our customers has over 1 million users. They have been using AuthenWare to authenticate their online e-banking customers for over 3 years. They went from millions of dollars of fraud annually down to zero. Now that is a wow factor!
CEOCFO: What is the plan to be more widely known and to get people comfortable?
Mr. Racca: We need to develop a much bigger network of resellers to get the word out. We have a Fast Track Program where customers can try our product for free. We also just released our mobile app in the iTunes & the Google stores. This should help gain traction immediately in the consumer market.
CEOCFO: Why should investors and people in the business community look today at AuthenWare?
thing is because cybercrime is still pervasive and no one has found a
solution yet. Everything else is failing miserably. AuthenWare’s accuracy
rate is 99.8% that hackers will be detected. The company will know if
someone is trying to hack a customer’s account in real-time, which will
dramatically reduce the fraud losses. The second thing that is very
important is that we have a very good user experience. Users love us because
all they have to do is type in their user ID and password normally and the
authentication happens seamlessly in the background. We are natural
security. They do not have to answer
security questions or carry a token. AuthenWare is actually more secure
because we identify the person not just the device. Third, AuthenWare is
less expensive because it is all software. It can be deployed massively as
we have done for millions of users for ebanking, in minutes and in days.
That is very different than any of the other factors that are in the market
today. Therefore, we have three reasons why people should be interested in
AuthenWare. One, it works. Two, users love it. Three, it is cheaper than
“One of our customers has over 1 million users. They have been using AuthenWare to authenticate their online e-banking customers for over 3 years. They went from millions of dollars of fraud annually down to zero. Now that is a wow factor!”- Felix Racca
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