San Francisco-based Effectiv, a real-time fraud and risk management startup, has secured an additional $4.5 million in seed funding, bringing its total funding to over $9 million.
The latest funding round was led by Better Tomorrow Ventures, with participation from Accel and several undisclosed angel investors. With the funding, Effectiv’s primary focus will be to develop solutions to combat the escalating challenge of AI-generated fraud, such as deepfakes and voice synthesising.
“Fraudsters are using technology like deepfakes to clone an individual’s voice, alter images or videos, access financial accounts, and perform unauthorised banking transactions. It’s a critical issue, and one that our team is committed to fighting,” said Ravi Sandepudi, CEO and Co-founder of Effectiv, in a statement.
Currently, the company’s AI-driven solutions include payment fraud detection, customer and business onboarding verification, and compliance management. Effectiv said it has aided organisations in processing more than $27 billion in financial products, currently handling over $100 million daily.
Ahead of the financial industry’s adoption of FedNow, an instant payment service launched by the US Federal Reserve, the company is gearing up to introduce DeviceAI, a feature that will analyse and flag suspicious user behaviour on devices, enhancing Effectiv’s payment fraud solutions.
“DeviceAI is the result of months of research and product development, and we are very excited to launch it, as it will significantly enhance our solutions,” said Ritesh Arora, COO and Co-founder of Effectiv.
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Effectiv was founded by Anupam Tarsauliya, Jonathan Doering, Ravi Sandepudi, and Ritesh Arora, who all worked together at fraud detection software company Simility (acquired by PayPal in 2018). Before joining Simility and PayPal, the founding members had worked in developing fraud prevention and machine-learning products for companies like Google and Walmart.
“Effectiv has done an incredible job proving the cutting-edge technology they are building can withstand one of the biggest challenges we face today in the financial industry. They are experts not only in the fraud space but also in machine learning and AI,” said Sheel Mohnot, Co-founder of Better Tomorrow Ventures.
Edited by Kanishk Singh
