Transparent real-time service that exposes the reputation of computers that connect to an online business

iovation’s core technology has been in service since February 2002 and has grown its revenue by 4 times since 2006. The company anticipates handling up to 1 billion real-time reputation inquiries in 2008 from customers representing a number of verticals including online retail, financial services, online social networks, and online gaming. iovation is the second adventure for its experienced management team that provided investors in their first company with a 25x to 100x return in four years.

Name: Greg Pierson
Position: CEO
Popularly known as: Executive Napkin Artist and Virtual Crime Fighter
Previous jobs: Founder of ieLogic
Education: B.S. in business administration and a B.S. in economics from Oregon State University
Family: Greg has been married for 20 years and has two children.
Residence: Woodland, WA
Other interests: Auto racing, sports cars, poker
Favorite Charity: Boys and Girls Aid Society (www.boysandgirlsaid.org) Self Enhancement Inc. (http://www.selfenhancement.org) and Kiva (www.kiva.org)

In the following interview, Greg Pierson, CEO - iovation discusses 1:1 with Rake Narang, Editor-n-chief of Network Products Guide, risks and real-time management of fraud and abuse. 

Rake Narang, Editor-n-Chief - Network Products Guide: How have online scams evolved over the years? What weaknesses do online scams take advantage of these days and how aggressive have they become?

Greg Pierson, CEO - iovation: The evolution of online fraud continues; from isolated individuals hacking for reputation and ego to more decentralized specialists hacking for profit.  In many respects criminals share information better than the online businesses they attack.  As online criminals becoming more organized, online frauds are increasingly more sophisticated, aggressive and frequent.  What remains constant is the underlying weaknesses that are being exploited.  Fraudsters can steal, buy and create identities with ease.  Combine this with significant potential rewards and minimal to non-existent consequences and you have a big problem.

 
"Keeping data secured is important and PGP Corp has solutions that are suitable for integrated applications in enterprises."

Rake Narang: What are the latest products and services provided by iovation? How are organizations handling fraud management currently and how should they be better prepared to handle any future scams?

Greg Pierson: ReputationManagerTM is one of iovation’s products – a transparent real-time service that exposes the reputation of computers that connect to an online business.  End-users connect to an online site with an identity and a device.  The end-user provides any identity information required, and they can type in anything they want.  ReputationManagerTM can tell you if a computer being used has ever been associated with fraud or abuse, and if so, what kind, when, and where.  And even before a computer is used to commit fraud, this service can help you identify patterns of use that are indicative of potential trouble. This platform also allows businesses to share device reputation intelligence without exposing the identities of their customers.

iovation pioneered the use of Device Reputation for real-time management of fraud and abuse.  We use device reputation to exposes cyber-criminals and abusers, preventing them from hiding behind multiple identities to repeatedly abuse your business.  Beyond reducing fraud, iovation helps businesses reduce operational costs and accept more good business.

Rake Narang: Will the security vendors always be playing a catch-up game with malware? How do you see the security products and services evolving 2-3 years from today?

Greg Pierson: Security has been and always will be a process and not an event.  Measures and countermeasures will continue to evolve because too much is at stake.  In the next two to three years we will see trends that have already begun, continue.  Security solutions must go beyond an insurance sale and encompass a real ROI that is not only about stopping losses, but also reducing operational costs.

Rake Narang: How is your company focusing on 2008 growth? As an executive leader, what steps have you taken that have had a positive impact on your company?

Greg Pierson: We have done a number of things to support our continued growth. The most visible has certainly been securing $15.0 million in growth capital from Intel Capital, European Founders and SAP Ventures.  These strategic relationships will help us more quickly expand in Europe and, ultimately, into Asia.  We have also significantly expanded our executive team and are in the process of adding exceptional talent and experience to our board of directors.  Our biggest and most important investment has been in attracting and retaining outstanding people. We have grown significantly in the past six months, closing Q1 of 2008 with 70 employees. We will double again in the next 12-18 months, gated solely by our ability to identify excellent talent that supports our culture.

All About iovation
Head Office Address: 111 SW 5th Avenue, Suite 3200 Portland, OR 97204
CEO: Greg Pierson
Public or Private: Private
Investors: Intel Capital, SAP Ventures and European Founders
Number of Employees: 70
Products: ReputationManagerTM is a real-time device reputation fraud management service that uniquely identifies cybercriminals and abusers so they can no longer hide behind multiple identities to perpetrate online fraud and abuse.  The technology creates a web of association that connects the dots between suspicious devices and hidden relationships with other devices and accounts across the Internet.  iovation’s Device Reputation AuthorityTM (DRA) is the world’s only device-based online fraud database that currently maintains the reputations of tens of millions of devices worldwide.  Sharing iovation’s network of device reputation intelligence enables online businesses to prevent fraud and abuse while increasing operational efficiencies and business revenue through more precise risk management.
Company’s Goals: In support of their mission to make the Internet a saver place, iovation’s primary goal is to be recognized globally as the clear market leader for device-base fraud and abuse management.