Identiq Raises $47M Series A to Revolutionize Fraud Prevention

Identiq Secures $47 Million in Series A Funding for Global Expansion

Identiq, an Israeli startup specializing in fraud prevention, has successfully raised $47 million in a Series A funding round. This investment will primarily fuel the company’s international growth initiatives, capitalizing on the significant increase in online transactions observed during the pandemic.

Investment Details

The funding round was spearheaded by Insight Partners and Entrée Capital. Additional participation came from Amdocs, the Sony Innovation Fund by IGV, and existing investors including Vertex Ventures Israel, Oryzn Capital, and Slow Ventures.

The Growing Fraud Prevention Market

The market for fraud prevention is experiencing substantial growth, projected to reach $145 billion by 2026. This represents an eightfold increase compared to the market size in 2018. However, this industry is inherently data-intensive and presents considerable security and privacy challenges.

Traditional fraud prevention methods often necessitate the sharing of extensive consumer data to differentiate legitimate customers from fraudulent actors.

Identiq’s Privacy-Focused Approach

Identiq distinguishes itself through a more privacy-conscious approach to fraud prevention. It achieves this without requiring the sharing of customer data with external third parties.

“Historically, companies have had to expose user data to third-party providers for validation, which creates significant privacy concerns,” explained Itay Levy, CEO of Identiq, in an interview with TechCrunch. “Our solution enables companies to verify data consistency across a network of trusted partners, all without disclosing any sensitive personal information.”

How Identiq’s Network Functions

When a new customer interacts with an Identiq client – for example, an online retailer – the client can query the Identiq network. This query asks if other participating businesses recognize or trust the new customer.

This peer-to-peer network leverages cryptographic techniques to allow online stores to anonymously assess new customers. This helps identify and prevent fraudulent activity without the need to gather private user data.

The company has already established a client base that includes prominent Fortune 500 companies.

Future Plans

Identiq intends to allocate the $47 million in funding towards expanding its workforce and enhancing support for its growing international customer base.

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