Sift Science collects $53m for fraud prevention, risk management offering

Sift Science, a provider of fraud prevention and risk management solutions, has closed a $53m round of funding.

The Series D funding round was led by Stripes Group, a New York-based growth equity firm, and featured participation from prior investors Union Square Ventures, Insight Venture Partners and Spark Capital. It brings the company’s total funding to $107m.

“Companies have always had to choose between protecting and growing their business,” said Sift Science CEO and co-founder Jason Tan. “With Sift Science, they no longer need to make this trade-off – they can reduce risk while also improving customer experiences. Our Digital Trust Platform already protects world-leading digital brands from fraud.”

The new round of financing will allow Sift Science to expand its global footprint in the fraud detection and prevention market.

Launched in 2011 from the Y Combinator incubator program, the Sift Science Digital Trust Platform uses Live Machine Learning to accurately predict which users online businesses can trust and which ones they can’t.

The platform hosts a full suite of fraud prevention products, providing a holistic solution that protects businesses from all vectors of fraud and abuse including payment fraud, account takeover, fake accounts and abusive user-generated content.

Sift Science claims the solution is so accurate at detecting fraud and abuse that many fraud processes and decisions can be fully automated. It enables users to configure workflows to automate actions based on machine learning predictions or specific data values. The solution can also help automatically block bad users, remove friction for good ones, or assign users to manual review queues, therefore streamlining fraud prevention practices.

Stripes Group invests in internet, software and branded consumer products businesses around the world. In the FinTech space, the investor has previously backed Remitly, which provides secure cross-border digital money transfer services on a best-in-class mobile technology platform. The firm has also backed GoFundMe, an online platform for social giving.

Copyright © 2018 FinTech Global

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