FiVerity, which offers cyber fraud detection and threat intelligence services, has closed a $2m funding round to help it expand its platform.
The investment was supplied by Mendoza Ventures and a number of angel investors, including serial entrepreneur Doug Levin. As part of the deal, Levin has been named as the company’s executive chairman.
Capital from the round will be used to expand its product suite and bolster its sales and marketing efforts.
FiVerity leverages machine learning technology to detect and prevent new and existing types of fraud aimed at banks, credit unions, credit card providers and other financial institutions. Its platform stops threats in real-time, including synthetic identity fraud.
FiVerity founder and CEO Greg Woolf said, “The increasing seriousness of synthetic identity fraud provided the initial focus for our market entrance. We’ve seen great results in preventing this type of cyber fraud, upwards of 40%, for our bank and credit union customers.
“But SIF detection and prevention is just for starters, our Platform has much broader applicability. This funding will help build momentum with our existing solutions, while also expanding to other types of financial cyber fraud and threat intelligence needs.”
A report from the Federal Reserve claims that synthetic identity fraud is the fastest growing financial fraud at 25% per year and accounts for 20% of consumer credit losses. It claims the fraud cost the industry more than $20m last year.
Synthetic identity fraud combines real and fake information to build an entirely new fraudulent identity. They often use automation tools to generate thousands of fake identities and apply for accounts and loans, overwhelming banks’ prevention efforts, it said.
Mendoza Ventures founder and general partner Adrian Mendoza said, “While the fraudsters are mounting an AI arms-race, FiVerity has enabled banks and credit unions to stay ahead of the hackers and their cyber fraud schemes.
“We’ve seen significant customer growth and market acceptance with FiVerity since their launch and expect major growth in the year ahead. They are attracting great advisors and world-class talent while forging deep ties within the AI community, financial institutions, the Federal Reserve, government agencies and law enforcement.”
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