Boston-based financial technology firm FiVerity Inc. has raised $2 million to expand its cyber fraud detection and threat intelligence platform for banks, credit unions and credit card providers.
FiVerity said in a statement last week that it had completed a $2 million financing round with investments from Boston-based venture capital firm Mendoza Ventures and a class of super-angels from the cybersecurity and financial services industries. The individual investors included serial entrepreneur Doug Levin, who has been appointed as the company’s executive chairman.
The company’s SynthID platform uses machine-learning to detect and prevent new and existing types of fraud – including synthetic identity fraud – at banks, credit unions, credit card providers and other financial institutions. FiVerity said it will use the funds to expand its products, sales and marketing.
Synthetic identity fraud combines real and fake information to create new fraudulent identities, often using automation tools to generate thousands of identities to apply for fraudulent accounts and loans, FiVerity said. The company’s platform overlays existing systems and data services with a layer of machine learning to provide a holistic perspective on fraud. The results are distributed across a community of financial institutions, regulators and law enforcement through secure information sharing to help thwart fraudsters.
“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 percent, for our bank and credit union customers,” Greg Woolf, founder and CEO of FiVerity, said in the statement. “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.”
FiVerity said it also added members to its advisory board with this funding round, including Harvard Business School professors and former executives from the Securities and Exchange Commission, U.S. Department of the Treasury and U.S. Navy Intelligence.
“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,” said Adrian Mendoza, founder and general partner with Mendoza Ventures. “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.”
