Under the two-year contract, PARC will partner with the Defense Advanced Research Projects Agency to develop technology for finding insider threats.
PARC will work with DARPA on the Anomaly Detection At Multiple Scales program and will also head research for a project using psychological context for anomaly detection.
The projects focus on using automatic identification from behavior and information-network data sets to catch a cyber offender.
Xerox said barriers that stand in front of finding insider threats include big data and lack of automatic semantic interpretation of data.
Xerox said another barrier is false information as a result of using a structural anomaly detection method.
Xerox said future technology could be used to stop fraudulent activity in the corporate environment.