$4.5M seed round closed for anti-fraud firm Effectiv

Fraud and risk-management software maker Effectiv says it has raised $4.5 million in a seed round led by Better Tomorrow Ventures.

Effectiv makes a platform to connect AI algorithms for buyer onboarding, payment fraud detection and other functions for financial institutions and fintech firms. The company had previously raised $4.5 million in pre-seed investment, bringing the total to $9 million.

Well-known early-stage venture fund Accel and angel investors participated in the latest round. Accel has participated in a previous round.

Executives say they will spend the money on corporate expansion.

Effectiv claims to have worked with organizations to process $27 billion since launching in 2021. Its big claim is that it can help companies shorten how long it takes to adapt to fraud developments while minimizing business friction.

Executives say they are near the release of their DeviceAI biometrics software, which is designed to find suspicious behavior by a device user. It does this by matching device attributes and user behavior. They see it as tying into the Federal Reserve’s just-launched FedNow instant payment service.’

The company also provides KYC compliance, document verification and liveness checks, and mentions Socure amongst its integration partners.

Jonathan Doering, co-founder of the company, has written about the growing challenges he sees.

Generative AI is democratizing fraud, according to Doering, making it easier for non-experts to target victims online. His company’s software consists of multiple tools and strategies to better match the ever-changing attack strategies.

Article Topics

biometrics  |  Effectiv  |  fraud prevention  |  funding  |  identity verification