Category: identity theft

Early Affirm employees raise $70M for SentiLink, an identity verification startup



SentiLink, an identity verification technology startup, has raised $70 million in a Series B funding round led by Craft Ventures.

Felicis Ventures, Andreessen Horowitz (a16z) and NYCA also participated in the financing, which brings the company’s total raised to $85 million since its 2017 inception. The company declined to reveal at what valuation the money was raised, saying only it was “at a very high multiple” of its 2019 $15 million Series A led by a16z.

Naftali Harris and Max Blumenfeld founded SentiLink in mid-2017 after their experience working as data scientists at Affirm, where they built out the company’s risk function. At one point during their tenure at the installment loan provider, they came across a “peculiar” fraud case, where 12 identities applied for loans using the same name and date of birth but 12 different Social Security numbers. 

The pair was surprised to discover that all 12 of the identities had real credit reports with 750+ credit scores despite not being real people. It was then they realized how big a problem identity verification was and how poorly it was done, and founded SentiLink with Affirm CEO and founder Max Levchin’s blessing and investment.

San Francisco-based SentiLink aims to help banks, lenders and financial institutions detect fraud at the point of application through a real-time API. Specifically, those APIs detect fake and stolen identities for new account applications. For example, before a bank issues a new credit card, it will send the application information to SentiLink. SentiLink’s (Read more...)

Brazil’s idwall raises $38M for identity validation platform



Online fraud and identity theft is a global problem that has only been exacerbated with increased online transactions amid the COVID-19 pandemic. In particular, it is estimated that Brazilian companies lose over $41 billion due to fraud every year.

In an attempt to tackle this problem head on, Lincoln Ando and Raphael Melo started idwall in mid-2016. São Paulo-based idwall started as an automated background check solution and has since grown into a suite of data and identity validation and risk analysis products. For the consumer market, its “MeuID” app is aimed at users who want to change the way they identify themselves and share their data.

And now the Brazilian regtech has raised $38 million in a Series C round led by Endurance.

GGV Capital, monashees, Canary, Qualcomm Ventures, ONEVC, Peninsula and Norte also participated in the funding, bringing its total raised to nearly $50 million.

The company says it has grown 1,458% between 2017 and 2020, with average growth of 144% per year. Its more than 300 clients include 10 unicorns, two out of the three biggest banks in Brazil and companies such as iFood, Claro, Cielo, Loggi, Ebanx, QuintoAndar and OLX, among others.

Fintechs make up a significant portion of its client base, and in 2020, the company saw its revenue from clients in the financial industry alone climb by 588% compared to 2019.

Idwall uses machine learning and AI to automate the onboarding process via its face match, background check, risk analysis, ID validation and automated (Read more...)

SpecTrust raises millions to fight cybercrime with its no-code platform



Risk defense startup SpecTrust is emerging from stealth today with a $4.3 million seed raise and a public launch.

Cyber Mentor Fund led the round, which also included participation from Rally Ventures, SignalFire, Dreamit Ventures and Legion Capital.

SpecTrust aims to “fix the economics of fighting fraud” with a no-code platform that it says cuts 90% of a business’ risk infrastructure spend that responds to threats in “minutes instead of months.” 

“In January of 2020, I got a bug in my ear to, instead of an API, build a cloud-based service that handles all this complex orchestration and unifies all this data,” said CEO Nate Kharrl, who co-founded the company with Bryce Verdier and Patrick Chen. “And, it worked. And it worked fast enough that you can’t even tell it’s there doing its work.”

For example, he says, SpecTrust even in its early days was able to pull identity behavior information in seconds.

“Today, it’s more like five and seven milliseconds,” he said. “And, engineers don’t have to lift anything or adjust data models.”

Since the San Jose, California-based startup’s offering is deployed on the internet, between a website or app and its users, an organization gets fraud protection without draining the resources of its engineers, the company says. Founded by a team that ran risk management divisions at eBay and ThreatMetrix, SpecTrust is banking on the fact that companies — especially financial institutions — will be drawn to the flexibility afforded by a no-code offering.

SpecTrust raises millions to fight cybercrime with its no-code platform



Risk defense startup SpecTrust is emerging from stealth today with a $4.3 million seed raise and a public launch.

Cyber Mentor Fund led the round, which also included participation from Rally Ventures, SignalFire, Dreamit Ventures and Legion Capital.

SpecTrust aims to “fix the economics of fighting fraud” with a no-code platform that it says cuts 90% of a business’ risk infrastructure spend that responds to threats in “minutes instead of months.” 

“In January of 2020, I got a bug in my ear to, instead of an API, build a cloud-based service that handles all this complex orchestration and unifies all this data,” said CEO Nate Kharrl, who co-founded the company with Bryce Verdier and Patrick Chen. “And, it worked. And it worked fast enough that you can’t even tell it’s there doing its work.”

For example, he says, SpecTrust even in its early days was able to pull identity behavior information in seconds.

“Today, it’s more like five and seven milliseconds,” he said. “And, engineers don’t have to lift anything or adjust data models.”

Since the San Jose, California-based startup’s offering is deployed on the internet, between a website or app and its users, an organization gets fraud protection without draining the resources of its engineers, the company says. Founded by a team that ran risk management divisions at eBay and ThreatMetrix, SpecTrust is banking on the fact that companies — especially financial institutions — will be drawn to the flexibility afforded by a no-code offering.

Fraud prevention platform Sift raises $50M at over $1B valuation, eyes acquisitions



With the increase of digital transacting over the past year, cybercriminals have been having a field day.

In 2020, complaints of suspected internet crime surged by 61%, to 791,790, according to the FBI’s 2020 Internet Crime Report. Those crimes — ranging from personal and corporate data breaches to credit card fraud, phishing and identity theft — cost victims more than $4.2 billion.

For companies like Sift — which aims to predict and prevent fraud online even more quickly than cybercriminals adopt new tactics — that increase in crime also led to an increase in business.

Last year, the San Francisco-based company assessed risk on more than $250 billion in transactions, double from what it did in 2019. The company has over several hundred customers, including Twitter, Airbnb, Twilio, DoorDash, Wayfair and McDonald’s, as well a global data network of 70 billion events per month.

To meet the surge in demand, Sift said today it has raised $50 million in a funding round that values the company at over $1 billion. Insight Partners led the financing, which included participation from Union Square Ventures and Stripes.

While the company would not reveal hard revenue figures, President and CEO Marc Olesen said that business has tripled since he joined the company in June 2018. Sift was founded out of Y Combinator in 2011, and has raised a total of $157 million over its lifetime.

The company’s “Digital Trust & Safety” platform aims to help merchants not only fight all types of internet (Read more...)