Neovera Strengthens Bank Fraud Defense Through Greenway Acquisition

Neovera, a cybersecurity and cloud services provider based in the Washington, D.C. area, has acquired North Carolina-based Greenway Solutions, which specializes in adversarial fraud testing. This strategic move enhances Neovera’s ability to simulate real-world fraud scenarios using actual funded accounts, thereby improving defenses against various financial crimes.

The acquisition is positioned to respond to the needs of both large and small financial institutions for more robust fraud management. Scott Weinberg, Neovera’s founder and CEO, noted that adapting Greenway’s enterprise offerings for smaller entities will involve leveraging automation and targeted pricing strategies. This adaptation aims to streamline fraud prevention measures for regional banks and credit unions, which often lack access to sophisticated cybersecurity solutions.

Weinberg commented on the increasing collaboration between Chief Information Security Officers (CISOs) and fraud risk managers within the banking sector, a trend he believes has gained momentum over the past few years. Previously, these roles typically operated in silos; however, Weinberg sees a pressing need for their integration in combatting cybersecurity threats that often exploit the same vulnerabilities.

Greenway Solutions, founded in 2005 and employing 21 staff members, has not publicly disclosed any outside funding. The leadership team, including Jerry Tylman and Patrick Shaw, has deep historical ties to Neovera and has been instrumental in cultivating Greenway’s methodologies in fraud testing. Their previous collaboration with Weinberg at American Management Systems facilitated a smooth transition into merger discussions.

Benefits to Financial Institutions from Greenway’s Innovative Testing

The genesis of this acquisition lies in a collaborative project on adversarial fraud testing initiated by Greenway. This partnership provided Neovera valuable insights into Greenway’s methodologies and strengths, laying the groundwork for merger discussions that followed. “Five years back, I would never have imagined we would end up as partners,” said Weinberg.

Greenway utilizes a novel approach that distinguishes it from traditional penetration testing. Rather than merely identifying vulnerabilities, their testing simulates genuine fraud scenarios using live accounts, which aim to replicate real-world attacks by scammers. Such simulations are designed to probe systemic weaknesses and behavioral oversights in banking processes, effectively mimicking sophisticated fraud tactics.

The client base of Greenway includes several of the world’s top 100 banks. In contrast, Neovera boasts a solid presence in the community and regional banking sectors. This acquisition allows Neovera to offer high-end fraud testing solutions tailored to smaller institutions as well as introduce its suite of security and consulting services to Greenway’s larger clients.

Rising Trends in Cybersecurity Collaboration

Weinberg indicated that Neovera intends to refine Greenway’s service offerings by streamlining services, minimizing the frequency of tests, and investing in automation to enhance cost-effectiveness. These adjustments respond to critical vulnerabilities such as account takeovers and unauthorized wire transfers, which are prevalent concerns among smaller banking institutions.

Historically, CISOs and fraud risk managers functioned separately, but the escalating threat of fraud necessitates a more integrated approach. As cybercriminals exploit common vulnerabilities, banking divisions must either coordinate their efforts more closely or engage specialists like Greenway for comprehensive testing solutions in live environments.

Weinberg expressed that Neovera will continue exploring acquisitions related to cloud security and business technology advisory services to broaden its capabilities in emerging risk areas. These services are pivotal for clients looking to navigate their cybersecurity strategies more effectively, bridging the gap between strategic planning and implementation.

“Strategic opportunities are always on our radar; you never know what possibilities may arise,” Weinberg stated, reflecting on how the acquisition was presented to them unexpectedly.