Deduce, described as the sole patented technology platform dedicated to curbing AI-generated identity fraud, has raised $9m in a recent funding round.
Leading the investment was Freestyle Capital, with Foundry and True Ventures also chipping in. This funding round is pivotal, enabling Deduce to roll out their GenAI Identity fraud solution, pulling it out of stealth mode. The fresh infusion of capital will propel the company’s efforts in countering widespread SuperSynthetic™ identity fraud, affecting a range of sectors such as the financial service industry, FinTech, and e-commerce.
Generative AI’s emergence has revolutionised various industries, fraud detection included. Platforms like FraudGPT have emerged, offering fraudsters new tools. Armed with AI and stolen PII (Personal Identifiable Information), these fraudsters can craft credible digital identities in batches, validate those identities with sophisticated deep fake biometrics, and even curate online transaction histories. This advancement allows cybercriminals to forge a multitude of SuperSynthetic identities, nearly indistinguishable from genuine ones.
Ari Jacoby, CEO of Deduce, commented on the situation, “We stand at a critical juncture where the security and privacy of our most important data is being threatened at an unprecedented level. Legacy fraud prevention methods will no longer be able to protect us from AI-generated fraud. Leveraging this new investment, we can take our solution to the market with the speed necessary to prevent this type of fraud from overtaking the organizations we serve.”
In the fight against AI-generated identities, Deduce recognises the need for an expansive identity graph. This graph should encapsulate a significant chunk of the online U.S. populace, viewing them multiple times weekly. With the aim of spotting Super Synthetic identities during account creations and locating “sleeper” identities that have already been integrated, Deduce is banking on multi-contextual activity-backed intelligence.
Freestyle Capital’s Partner, Jenny Lefcourt, shared her insights, “We know the rapid adoption of generative AI will enable bad actors to use new technologies to perpetrate fraud. Every company that cares about customer data and identity will need a solution like Deduce provides immediately. Deduce has built a proprietary solution to tackle this new type of threat, so our decision to invest in scaling that solution was simple.”
Deduce employs multi-contextual intelligence in its approach, sourcing and examining real-time data from an array of sources to discern identity patterns and detect the digital forensic patterns induced by AI-generated fraud. Through these patterns, Deduce can pinpoint anomalies in seemingly regular identities and flag them for a thorough review.
Keep up with all the latest FinTech news here.
Copyright © 2023 FinTech Global
