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Upstream Security Raised $62m In Series C Funding Round

Upstream Security, the specialist in automotive cybersecurity and data analytics for connected vehicles, announced that it has closed a $62 million round C investment, bringing its total funding to $105 million since its inception. Mitsui Sumitomo Insurance (MSI), a subsidiary of MS&AD Insurance Group Holdings, Inc., led the latest investment, which was joined by new investors I.D.I. Insurance, 57 Stars’ NextGen Mobility Fund, and La Maison Partners. Glilot Capital, Salesforce Ventures, Volvo Group Venture Capital, Nationwide, Delek US, and others are among Upstream’s existing investors.

Upstream is a cloud-based cybersecurity and data analytics platform that taps into the massive amounts of data stored in connected vehicles and incorporates it with purpose-built artificial intelligence and machine learning technologies to empower its clients to improve business results by providing advanced security capabilities and data analytics actionable insights.

Some of the world’s largest automotive OEMs, as well as tier 1 and tier 2 suppliers, mobility service providers, and others, use Upstream’s solutions to secure millions of vehicles on the road today from cyber attacks.

 The new investment will help Upstream expand its services to current and future customers in the areas of data analytics, insurance telematics, predictive analytics, and business intelligence, while also strengthening its position in the connected car cybersecurity sector. Furthermore, the organization will continue to put resources into finding, attracting, acquiring, and retaining elite people.

 Yoav Levy, CEO and Co-founder of Upstream Security said, “We are excited to reach this important milestone and welcome new investors, who believe in our mission to unlock the value of mobility data. With today’s revolution in automotive connectivity and exponential growth in the number of connected vehicles on the road, the demand for automotive cybersecurity and data analytics solutions has increased significantly, and Upstream is well poised to tap this growth and capitalize on the business opportunities shared by our customers and partners.”  

Enterprise Fraud Management – An Overview

Enterprise Fraud Management (EFM) is a centralized framework for risk management, providing comprehensive risk analysis and application of controls for identifying internal and external frauds across all users, accounts, and channels in the organizations by transaction monitoring and customer profiling. Furthermore, it helps in identifying malicious behaviour and corruption in real-time thereby combating risks, minimizing losses, ensuring regulatory compliance, and optimizing operational efficiencies across the organization and entities.
EFM platform gives higher visibility in identifying threats and mitigating these threats. EFM solutions also offer a unified dashboard, enabling real-time monitoring of transactions and raising alerts for anomalies if required.

Some Noteworthy Features of EFMs are –

  • Centralized Data Repository – Businesses are developing centralized data repositories for clients’ accounts and transactions data for various products and services across multiple channels. EFM solutions process large quantities of data in real-time to create detailed profiles of clients and employees using high-performance computing technology based on machine learning, which can be used to detect and investigate money laundering and fraud.
  • Fraud Risk Assessment – A fraud risk assessment is a vigorous and continuously improving process. Organizations do thorough fraud risk assessments to identify individual fraud schemes and risks, assess their probability and magnitude, check existing fraud control actions. They introduce new rules and regulations to improve fraud detection. EFM solutions use risk scores to assess fraud based on guidelines provided by enterprise firm and analysed historical information. The new cloud-based EFM solutions are flexible enough to adapt these new rules and risk assessment tasks.
  • Real-Time Detection using Analytics – Since fraudsters are becoming more advanced, EFMs must evolve at a faster rate. EFM solutions allow for in-depth analysis of internal and external data collected from all resources for real-time fraud detection. In addition to rule-based fraud detection, sophisticated predictive fraud models fuelled by analytics on massive quantities of data are being developed. Risk is assessed in real-time for each transaction using a combination of parameters, algorithms, and cumulative statistics by comparing the characteristics of each customer’s or employee’s conduct with the fraud models and recorded patterns of behaviour. Techniques like graph visualization are used to identify underlying patterns and irregularities in data. EFM’s have forensic tools for e-fraud investigation. The aim is to use all available data to detect illegal activity before it happens and to avoid it before a customer’s account is compromised.
  • Scalability and Performance – EFM solutions are cloud-based, so there are no data storage and processing limitations. Financial institutions like banks with millions of customers and billions of transactions can be monitored with EFMs while retaining the fast detection needed in real-time environments. These organizations can leverage EFM’s cross-channel fraud management, user-centric fraud detection based on advanced AI. EFM solutions can easily correlate fraud events across the organization.
  • Enterprise Case Management – Enterprise Case Management uncovers hidden relationships in financial transactions. It is created primarily for financial fraud detection and investigations in the EFM solutions, it is built on previous fraud cases. These prebuilt and streamlined cases include key areas of fraud, which ease the process of fraud detection.

In the digital era, with evolving technologies, fraud attacks are also increasing at an alarming rate, indicating organizations to include Enterprise Fraud Management solutions to mitigate threats and frauds in the risk landscape.

User & Entity Behaviour Analytics – An Overview

UEBA technologies employ analytics to construct standard profiles and behaviours for users and entities (servers, routers) in an Enterprise firm over a period. This is referred to as “baselining”. Activity that differs from these standard baselines is flagged as suspicious by UEBA technology and analytics applied to these anomalies helps in the discovery of possible risks and security incidents.

The term UEBA was introduced by one of the leading research firm Gartner. UEBA Solutions includes following three factors –
Use Cases – UEBA solutions gives information on how employees, clients and other entities in the organization’s network behave. They conduct activities like anomaly identification, alerting and tracking. And, contrasting to traditional single use-case based specialized tools, UEBA tools are applicable to multiple use cases.
Data – UEBA collects real time event data in structured and unstructured format from user’s and entity’s activities directly or through an existing IT repository. This Enriched data must be machine-readable.
Analytics – UEBA Solutions uses analytics for user focused data exploration and visualization with machine learning (ML) and statistical models by comparing baseline rules with users and entities’ activities with their profiles to detect anomalies.

UEBA Solution Benefits
UEBA Solutions consider both internal and external threats of an organization when creating new policies and rules. When the attack pattern is unknown (zero-day attack), or if the attack enters laterally by changing credentials, IP addresses in an enterprise, traditional security tools struggle to identify a compromised insider. UEBA solutions can detect these attacks because attackers force compromised users or entities to behave differently than defined rules or baseline.

In most cases, UEBA solutions are provided as a cloud-based service or on-premises, sometimes both to an organization. UEBA vendors often require companies to install appliances for network traffic monitoring. The vendor’s approach and design are flexible in terms of the organization’s current and future needs. It’s takes time of 1 month or more to create baselines, profiles and classes of users and entities.

By determining which users reflect anomalous behaviour as compared to known baselines, UEBA solutions prioritize alerts. A security alarm would not be triggered by a single slightly unusual incident. To generate an alarm, the device needs several indicators of suspicious behaviour. This saves investigating team’s time by reducing number of alerts and allows security analysts to find actual security issues more quickly.

UEBA’s Application in IoT – UEBA can play vital role in security risk of Internet of Things (IoT). Huge number of internet-connected devices are deployed by businesses mostly with less security measures in place. Attackers can hack IoT devices and use them to steal information or to launch attack on other companies like DDoS attack. This can cause significant financial losses. UEBA can monitor large number of connected devices for an enterprise firm, create baselines for similar devices and detect when a device deviates from its normal behavior.

Advanced Analytics in UEBA Solutions – Data Integration helps UEBA solutions to compare data from various sources. UEBA solutions apply statistical models on data gathered from various sources with help of machine learning to do deep behavioural profiling in order to identify sensitive changes in user’s activity. The use of unstructured data for unsupervised learning gives big advantage. Data Presentation is used to present findings in a comprehensible way to security analysts.

Use Cases – Uniqueness of use cases separates UEBA solutions from other tools. UEBA solutions build use cases for various domains like malicious insider, incident prioritization, compromised insider, Identity and privileged access management, data exfiltration, etc. These pre-defined uses cases are available at one click on cloud storage which enables quick deployment.