Deduce, a patented technology platform designed to prevent AI-generated identity fraud, has announced US$9M in funding led by Freestyle Capital, with additional investment by Foundry and True Ventures. The funding will launch Deduce’s GenAI identity fraud solution out of stealth and help the company scale to prevent large-scale SuperSynthetic identity fraud across multiple verticals, including the financial service industry, Fintech and e-commerce.
The rise of Generative AI has accelerated efficiency across industries, including organised fraud, with the introduction of platforms such as FraudGPT. Bolstered by these new technologies, fraudsters can leverage AI and stolen PII to create batches of credible digital identities, authenticate those identities with deep fake biometrics and create online transactional histories. Utilising this technology, cybercriminals can leverage automation to create a virtual army of SuperSynthetic identities that are indistinguishable from legitimate identities.
“We stand at a critical juncture where the security and privacy of our most important data is being threatened at an unprecedented level,” said Ari Jacoby, CEO of Deduce. “Legacy fraud prevention methods will no longer be able to protect us from AI-generated fraud. Leveraging this new investment, we can take our solution to the market with the speed necessary to prevent this type of fraud from overtaking the organisations we serve.”
Detecting AI-generated identities requires a massive identity graph that sees the vast majority of the online US population several times each week. Deduce will leverage multi-contextual activity-backed intelligence to help organisations identify SuperSynthetic identities during account opening and sleeper identities already onboarded.
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