Israeli fraud prevention startup Identiq has raised $ 47 million in Series A, as the company expects international growth, driven in large part by a spike in online spending during the epidemic.
The round was led by Insight Partners and Entry Capital, with participation from IGV by Amadok, Sony Innovation Fund, as well as existing investors Vertex Ventures Israel, Orizen Capital and Slow Ventures.
Fraud prevention is big business, likely to be $ 145 billion by 2026, eight times larger in size than in 2018. But it is a hungry industry, fraught with security and privacy risks, relying on sharing vast sets of consumer data. To find out who the legitimate customers are, and therefore to take out the fraudsters.
Identiq takes a different, more privacy-friendly approach to fraud prevention, without sharing customer data with a third-party.
Idee CEO Ete Levy told TechCrunch, “Before now, companies could solve this problem by exposing data given to third-party data providers to users for verification.” “We solved this by allowing these companies to verify that the data given to them matches the data of other companies, who already know and trust the user without sharing any sensitive information . “
When an Identiq customer – such as an online store – sees a new customer for the first time, the store may ask other stores in Identiq’s network whether they know or trust that new customer. This peer-to-peer network uses cryptography to sell online stores anonymously to help new customers such as fraudsters and scammers, without the need to collect private user data.
So far, the company says it already counts Fortune 500 companies as customers.
Identiq said it plans to use the sum of $ 47 million to grow and grow the company’s workforce, and aims to increase its support for international customers.