FAAMG-like fraud prevention for companies of any size
Deduce, the leading provider of cybersecurity solutions powered by real-time identity network data, today announces its successful $10M Series A round led by Foundry Group with participation from True Ventures. The company is also announcing the launch of Deduce Insights, a first-of-its-kind platform that increases digital identity telemetry and acts as cybersecurity radar to give early warning of fraudulent behavior before it affects a company’s customers.
Insights provides real-time analytics profiling and scoring based on over 1.4 billion daily user interactions drawn from over 150,000 websites and 450 million user profiles. Powerful fraud-spotting tools once reserved for the world’s largest tech companies, like Facebook, Apple, Amazon, Microsoft, and Google (FAAMG), are now available to companies of any size.
“Following the success of our Customer Alerts product, companies told us that they wanted a platform to plug gaps in the data needed to proactively spot fraudulent behavior so they could stop it before their customers were affected,” explains Ari Jacoby, Deduce CEO and co-founder. “We developed Insights to answer that call with a level of real-time user behavior data unprecedented outside the walls of the world’s largest tech companies.”
The innovative approach of Deduce’s Customer Alerts product — that directly alerts customers about suspicious account activity — resulted in the company’s selection as a finalist in the RSA Innovation Sandbox competition along with an honorable mention from Fast Company’s World Changing Ideas Awards.
“Identity fraud is a huge problem facing any industry that registers or logs in customers. Account takeover fraud alone is expected to triple over the next five years,” points out Lindel Eakman, a partner at Foundry Group. “Few companies outside of the FAAMG club have the data and resources to counter that threat but Deduce’s innovative approach levels the playing field to let any company proactively protect its customers — and its reputation — as the pandemic-accelerated shift online becomes the new norm.”
Insights draws from the same pool of innovation as Customer Alerts and is powered by the Deduce Identity Network that works within global data privacy rules, including GDPR and CCPA, to analyze vast troves of real-time user behavior data. The data network provides ground truth for determining whether a user is who they claim to be at the point of online interaction. Powerful algorithms crunch the data to spot potentially fraudulent activity and provide early warning to detect and prevent threats including:
Account Opening/New Registration Fraud — augments a company’s existing fraud or know-your-customer (KYC) solutions with digital insights to stop fraudsters from impersonating compromised user identities
Account Takeover — detects and allows quick responses to irregular or anomalous user account activity, bolstering defenses and stopping account takeover in its tracks
Account Anomalies — measures deviations against known and expected account interactions to detect security threats
Customers from eCommerce and fintech to social and entertainment rely on Deduce to detect and stop potentially fraudulent behavior before consumer accounts are affected. Untappd, a networking service for beer lovers around the world, uses Deduce’s Customer Alerts to protect its users against suspicious account activity and enhances its fraud-spotting with Insights by adding critical factors to forecast potentially fraudulent behavior, like:
Activity Data — determine what the expected point of origin, interaction type, and typical behavior is for a particular user
Device Metrics — identify suspicious changes in device type and parameters including OS and browser data
Network Intelligence — detect anomalous and suspicious network types that are involved in fraudulent activity and anomalies like proxy servers, TOR browsers, or datacenters
Geolocation — assess a user’s point of origination across countries, states, cities, and time zones to spot suspicious behavior
Threat Signals — easily consume trust indicators, and risk signals to affect a user’s online journey
Recurrent Ventures, an innovative digital media company, will soon start using Deduce to protect its user and visitor data across its portfolio of high-profile media properties such as The Drive, Domino, Popular Science, SAVEUR, Task & Purpose, and more.
“In an increasingly complex online world where users are highly mobile, own multiple email accounts or use services like VPNs, it’s very difficult to discern legitimate behavior from fraudulent behavior,” explains Matt Young, Recurrent’s CRO. “Deduce’s unparalleled technology addresses the critical cybersecurity issues but most importantly, it will help us protect our users and our brands.”