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Oracle buys fraud detection software firm

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Oracle is bulking up its system security capabilities through the acquisition of privately held Bharosa for an undisclosed sum. Bharosa software will control and secure access to systems built with Oracle applications and middleware.

Set up in 2003, Santa Clara, Calif. based Barosa claims 25 million end-users for its fraud detection and identity management software.

Bharosa combines real-time fraud detection with multi-factor online authentication through the Bharosa Tracker and Authenticator. Bharosa's capabilities will be folded into Oracle Identity Management.

The goal seems to be to help Oracle customers comply with security conditions mandated under US regulation such as HIPAA (Health Insurance Portability and Accountability Act) while cutting the cost and complexity of implementing systems, and avoiding the cost associated with loss of data. Oracle said Bharosa will provide enterprises with "a comprehensive identity management solution that integrates pro-active, real-time fraud prevention".

This latest deal fits a pattern from Oracle of buying expertise rather than go to the expense and delay of building its own technology. Bharosa is Oracle's 32nd acquisition since 2005. Identity-management related purchases during that time include Oblix for web-services based single sign on, Thor Technologies for user provisioning and identity and access management, and OctetString for virtual directory. ®

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