8) THREATMETRIX, INC.: Product: ThreatMetrix Fraud Prevention System / CEO/President: Reed Taussig / Why they matter: ThreatMetrix tackles fraud by determining the trustworthiness of the device originating a transaction. / Rivals: Iovation, Inc., 41st Parameter, Inc.

INTERNET FRAUD PREVENTION

A Cross Check of Fraudsters

ThreatMetrix began as an R&D project to help the Australian government prevent intrusions onto its Websites. Co-founder and CTO David Jones realized most intrusions came from behind proxy servers or from PCs infected by botnets.

"Fraudsters use proxies to give their PC a false IP address," says Ryno Blignaut, CFO at ThreatMetrix client Xoom, an online remittances provider. "For every stolen card they use online, they'll have a different IP address."

Relocating to the U.S. in...