ThreatFabric has raised 11.5 million euros (about $12.5 million) to grow its fraud detection solution.
The Amsterdam-based startup aims to expand internationally and add artificial intelligence (AI)-powered behavioral-based fraud detection to its Software-as-a-Service (SaaS) solution for the financial services sector, ThreatFabric said in a Thursday (May 11) press release.
ThreatFabric CEO Han Sahin said in the release that the new capital raised in the seed round will be used “for further expansion and to extend our Fraud Risk Suite platform focused on new proactive fraud controls. For example, with behavior-based location intelligence and behavioral biometrics that use advanced AI models that forecast potential fraudsters’ online footprint inside payment journeys.”
ThreatFabric’s fraud detection solution is designed to give banks and financial institutions comprehensive fraud visibility across both web and mobile channels, according to the press release.
The solution also uses different protection layers, including on-device malware detection and behavioral analytics, to help clients protect their end users from fraud, the release said.
“Best-in-class fraud detection technology is required to understand the ever-changing landscape of fraud vectors and threat actors in the digital financial services sector,” Motive Ventures Partner and Head of Portfolio Management Michael Hock said in the release. “ThreatFabric’s team impressed us with their deep domain expertise and their sticky product suite, which detects new and imminent threats tailored to digital banks and payments services.”
PYMNTS research has found that 62% of all financial institutions have experienced an increase in financial crime.
An even greater share of smaller financial institutions — those with between $5 billion and $25 billion in assets — experienced such an increase, according to “The State of Fraud and Financial Crime in the U.S.,” a PYMNTS and Featurespace collaboration.
In a recent example of ThreatFabric’s fraud detection capabilities, the firm found in February that cybercriminals are attempting to circumvent fraud prevention measures that rely on biometric authentication.
For banking apps to protect consumers from this type of threat, more attention needs to be paid to how people authenticate themselves, rather than just assuming that because biometric login was offered, that makes the authentication secure, Sahin told PYMNTS in an interview posted Feb. 7.
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