The Israeli start of anti-fraud Identiq has raised $ 47 million in Series A as the company sees international growth, largely driven by the rise in online spending during the pandemic.
The round was led by Insight Partners and Entrée Capital, with participation from Amdocs, Sony Innovation Fund by IGV, as well as existing investors Vertex Ventures Israel, Oryzn Capital and Slow Ventures.
Anti-fraud is a big deal, thought to be worth $ 145 billion in 2026, eight times larger than 2018. But it is a data-hungry industry, fraught with security and privacy risks, that must rely on sharing huge sets of consumer data for to find out which legitimate customers are to clear the fraudsters, and therefore.
Identiq takes a different, more privacy-friendly approach to preventing fraud, without having to share a customer’s data with a third party.
“Before now, the only way companies could solve this problem was by exposing the information they received from the user to a third-party data provider for validation, which created huge privacy issues,” Identiq CEO Itay Levy told TechCrunch. “We solved this by having these companies confirm that the information they received matched the information from other companies that already know and trust the user without sharing any sensitive information at all.”
When an Identiq customer – like an online store – sees a new customer for the first time, the store can ask other stores in Identiq’s network if they know or trust the new customer. This peer-to-peer network uses cryptography to help online stores anonymous new customers to clear out bad actors, such as fraudsters and fraudsters, without having 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 $ 47 million fundraiser to hire and increase the company’s workforce and aims to increase its support for its international customers.