Deduce, a leading fraud prevention company headquartered in the United States, has successfully raised $9 million in a recent funding round dedicated to the prevention of AI-generated identity fraud.
In a strategic move following this funding milestone, Deduce is poised to unveil its groundbreaking GenAI Identity Fraud Service. This cutting-edge service promises to revolutionize the landscape of identity protection by enhancing its scalability in countering large-scale SuperSyntheticTM identity fraud schemes, a pressing concern across diverse sectors including fintech, e-commerce, and the broader financial services industry.
The funding round was spearheaded by Freestyle Capital, a prominent venture capital firm known for its investments in transformative technology ventures. Additionally, Deduce garnered support from esteemed partners Foundry and True Ventures, further cementing its position in the fight against evolving cyber threats.
As the launch of generative AI accelerated across industries, fraudsters can leverage artificial intelligence and stolen PII in order to create branches of credible digital and online identities, as well as authenticate those identities with deep fake biometric tools and develop online transactional histories. Moreover, cybercriminals have the possibility to also use automation in order to design a virtual suite of SuperSynthetic identities that cannot be distinguished from legitimate ones easily. For this matter, Deduce is set to leverage a multi-contextual activity-backed type of intelligence that can optimise the way organisations and firms identify Super Synthetic identities during the process of account opening, as well as `sleeper` identities that were already onboarded.
Furthermore, Deduce will utilise multi-contextual intelligence in order to gather and analyse real-time data and information from multiple sources for recognising identity patterns and for flagging any forensics patterns that are created by AI-generated fraud. Deduce will use these patterns in order to recognise unusual, fraudulent behaviors in identities that seem normal and flag them for a review process.
The Deduce AI-generated identity fraud product is currently available for multiple partners of the company, such as Ping Identity, Auth0, ForgeRock, or Experian.
Deduce’s recent partnerships
Deduce announced in January 2023 its strategic collaboration with fraud operations platform Authsignal in order to allow the latter to use the Deduce Identity Network. The partnership aimed to strengthen its fraud and authentication capabilities and offerings while also prioritising the process of meeting the needs, preferences, and demands of its clients and the overall industry.
Authsignal was enabled to provide its users with the possibility to benefit from multiple features, such as fraud insights and alerts, efficient and secure authentication flows, and ID verification tools, all of them being focused on offering customers a frictionless experience.
Deduce was set to reduce new accounts and synthetic identity fraud while utilising its Deduce Identity Network. Furthermore, the identity intelligence tool aimed to give corporations and enterprises the possibility to mitigate risk, reduce identity fraud, and provide an overall frictionless payment experience for their clients and customers while using Deduce’s behavioral intelligence at scale.
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