The 41st Parameter Joins the Anti-Phishing Working Group to Combat the Rise of Online Fraud

Business Wire, May 16, 2005

SCOTTSDALE, Ariz. -- The 41st Parameter, the leading provider of anti-fraud and anti-phishing solutions, today announced that the company has joined the Anti-Phishing Working Group (APWG). The APWG is the foremost industry alliance committed to eliminating phishing scams and online identity theft and fraud.

Phishing uses spoof emails and fraudulent websites to deceive recipients into submitting personal information such as credit card, bank account, and social security numbers, which can lead to identity theft, fraud, and financial loss. A new version of the scam -- pharming -- plants malicious software on the users' computers to direct them to phony sites. By creating a loss in consumer confidence, these attacks can threaten the adoption of online commerce. Unfortunately, phishing attacks continue to proliferate. The APWG reports that the number of phishing attacks grew an average of 26 percent per month from July of 2004 to February of 2005. According to Gartner Group, identity theft from phishing attacks cost U.S. banks and credit-card issuers about $1.2 billion in 2004.

"The 41st Parameter and the Anti-Phishing Working Group will combat phishing attacks to make the Internet a safer place for online transactions," said Ori Eisen, CEO of The 41st Parameter. "As a member of the group, The 41st Parameter is dedicated to preventing fraud and phishing attacks by developing the smartest solutions, ones that place zero imposition on the end user. Such solutions allow customers to feel confident about their e-commerce transactions."

"The goal of the Anti-Phishing Working Group is to wipe out Internet scams and fraud. The 41st Parameter's expertise in identifying and preventing phishing and fraud will be a valuable voice in the coalition," said Peter Cassidy, secretary general of the Anti-Phishing Working Group. "The 41st Parameter and Ori, a notable figure in the anti-fraud industry, are great additions to our distinguished group of members, who are working together to educate consumers and businesses on the complexities of fraud and protect the integrity of e-commerce."

The 41st Parameter has the industry's most advanced fraud prevention system. Current solutions rely on reactive fraud analysis based on real-time anti-fraud measures, which can increase the number of "false positives" and reduce merchants' sales. The 41st Parameter's flagship product, FraudNet, works within the framework of the existing logistical time lapse between the transaction and shipment, providing greater accuracy and an increase in legitimate sales for the merchant. The 41st Parameter's PhishingNet product allows companies to immediately differentiate between legitimate and fraudulent users and recognizes authentic users without violating customer privacy.

About The 41st Parameter

The 41st Parameter is a fraud detection and financial services risk management company with solutions designed for e-commerce and the online banking industry. The flagship product, FraudNet, provides highly accurate, non-intrusive fraud control measures for Internet, mail-order, and telephone-order merchants. PhishingNet is the company's anti-phishing solution for the online payment and financial services industry. The 41st Parameter's fraud and phishing products are "zero imposition" solutions since they require no action on the part of customers or end-users. For more information, please visit www.the41.com.

About the Anti-Phishing Working Group

The Anti-Phishing Working Group (APWG) is focused on eliminating the problem of phishing and email spoofing attacks by developing and sharing information about the problem, and promoting the visibility and adoption of industry solutions. Membership in the group is open to qualified financial institutions, corporations, law enforcement agencies, public policy groups and solution vendors.

The Web site of the Anti-Phishing Working Group is www.antiphishing.org. It serves as a public and industry resource for information about the problem of phishing and email fraud, including identification and promotion of pragmatic technical solutions that can provide immediate protection and benefits against phishing attacks. The analysis, forensics, and archival of phishing attacks to the Web site are currently powered by Tumbleweed Communications' Message Protection Lab(TM).