The OIX advertising platform, backed by Phorm, has been designed for internet service providers to gather data on groups of users to target them with specific ads.
Three of the UK's biggest ISPs - BT, The Carphone Warehouse and Virgin - have already signed up, but privacy groups claim to be concerned that customers of these ISPs will not be asked for their consent for their data to be used in OIX.
Software security firms are reported to be monitoring the OIX technology before deciding whether to release a device that would potentially block the cookies Phorm needs to track the preferences of web users.
But Drayton, who heads OIX, said that Phorm is now working with ISPs to allay concerns over security. "Security companies are interested in what we're doing. Our ISP partners are close allies with all of those companies," said Drayton. He added that Phorm does not retain details on which sites users have visited.
Drayton said that Phorm's technology offers users increased levels of protection against fraud and provides an up-to-date anti-phishing feed that warns consumers when they are about to enter known phishing sites. He added: "Only 30 to 40% of users have proper network security, so we are actually enhancing their security in this area."