Uncovering Strategies: The Bureau's Persistent Battle Against Global Deceit, Identity by Identity
Uncovering Strategies: The Bureau's Persistent Battle Against Global Deceit, Identity by Identity
Who's going to stop the surge of deception buzzing around the globe? Nasdaq's latest study suggests that financial scams have managed to pocket a mind-boggling $485 billion annually, thanks to fraudsters exploiting digital connectivity and leveraging new tech to prey on their victims.
One entity claiming to fight these swindlers is FraudBuster. Based in California, this emerging startup, recently announcing the completion of a successful $30 million Series B financing round, asserts that its risk intelligence platform is equipped to aid enterprises and other organizations in combating advanced fraud assaults.
Our Publication initially reported on FraudBuster back in July 2023, highlighting news of its $16.5 million Series A round. Since then, the company's customer base and revenues have both tripled, states Ranjan Reddy, founder and CEO. They have authenticated over 600 million identities on behalf of more than 150 clients, Reddy adds.
“The world is grappling with a substantial problem as the cost of acquiring identities for deceit just keeps decreasing,” says Reddy. In certain parts of the world, an individual's identity details required to commit identity fraud can be procured online for a few dollars, he cautions. “I anticipate that in the near future, consumers will demand a trustworthy banking experience, which demands businesses to invest in advanced risk infrastructure that spotlights and prevents compliance, fraud, and security risks in real-time.”
Enter FraudBuster’s platform, which primarily focuses on nipping identity frauds in the bud. FraudBuster's methodology begins with analyzing a customer's digital persona – this could be a mobile number or email address received from a client; then it attempts to link this persona to a real-life individual, to verify their existence; ultimately, the platform reviews the behavioral data related to that identity and individual, to determine if the identity request made to its client merits investigation.
The objective is to assist organizations in quickly and securely verifying the identities of new and returning clients. Suspicious clients can be rejected while legitimate ones can proceed without unnecessary checks hindering their operations.
This is a multi-faceted challenge, requiring integration of various tools and technology, such as analytics and AI-driven solutions. The goal is to offer a unified platform to tackle challenges like money mule detection, account takeover prevention, fraud ring risk, and onboarding compliance. The outcomes of each identity verification seamlessly feed into the enterprise's workflows.
FraudBuster's clientele hails from assorted industries, but banking, lending, gaming, and e-commerce businesses comprise a significant portion of their clientele. Their technology aids gaming businesses in detecting collusion, supports fintechs and other credit providers when lending to first-time clients, and streamlines the client-onboarding process for other businesses.
“Historically, compliance, fraud, security, and credit risks have been compartmentalized within companies, each category served by individual solutions,” Reddy elaborates. “With digital-centric and increasingly digital-exclusive customer journeys, these risks have become interlinked and demand continuous observation of customer identities and transactions; we can address this need with a single, comprehensive platform.”
The company's exponential growth post-Series A round underscores the demand for such solutions. FraudBuster anticipates that their additional fundraising will bolster their technology capabilities, particularly in sectors where client numbers are escalating the most, and fuel an expansion in their go-to-market activity. The organization currently employs 85 people, but Reddy predicts this number will surge to 120 by the end of 2025.
Today's Series B round is led by Sorenson Capital, a renowned investor in the identity sector, with contributions from PayPal Ventures. It also features further investments from existing backers Commerce Ventures, GMO Venture Partners, Village Global, Quona Capital, and XYZ Ventures.
Rob Rueckert, a partner at Sorenson Capital, highlights the company's potential for swift growth. “FraudBuster utilizes a distinctive amalgamation of device, behavior, financial, and alliance data to swiftly quash swindlers without inflicting inconvenience upon users,” he remarks. “By warding off fraud while preserving customer retention, revenue, and expansion, FraudBuster boasts a unique edge in the extensive and critical fraud prevention realm.”
Entrepreneurs in the fraud prevention sector are seeing significant opportunities, with companies like FraudBuster experiencing exponential growth. The small business sector, in particular, is recognizing the need for advanced risk infrastructure to combat identity fraud and ensure a trustworthy banking experience for their customers.