Allure Security raises $6.8 million seed round in fight against digital fraud
Allure Security has raised a $6.8 million seed round as the company progresses in a $76 billion battle against digital fraud.
The online brand abuse detection and protection solution provider has announced the close of its $6.8 million seed funding round. Gutbrain Ventures led the round, joined by new Allure Security investors PBJ Capital and Impellent Ventures, and existing investors Glasswing Ventures, Zetta Venture Partners, and Portage Partners.
The investment comes amidst increasing demand for Allure Security's technology, with online fraud surging - $56 billion in identity theft and $20 billion in online payment fraud losses. The company plans to use the capital to accelerate go-to-market activities, grow its team, and continue product innovations.
The US Department of Defense initially funded allure Security, and its investors have decades of experience funding numerous companies in fraud detection and prevention, threat intelligence, and artificial intelligence (combined estimated market size of $92.9 billion).
Allure Security opens 2022 having achieved significant milestones:
- Increased go-to-market capacity by growing the sales and marketing teams.
- New offerings for identifying fraudulent mobile apps and social media accounts.
- Leadership team appointments including vice president of sales Jason Gonzales (Tenable, Cylance, and McAfee), vice president of operations Molly DeQuattro (Akamai and Harvard University), and field chief technology officer Mark Trinidad (Trustwave, Varonis, and McAfee).
"There's a 76 billion-dollar digital fraud problem that legacy technology can't seem to stop," says Josh Shaul, chief executive officer at Allure Security.
"Allure Security's AI-based approach to targeting the scam source destroys criminals' business models, something traditional methods fail at," he says.
"Legacy approaches to deceptive online content, such as domain monitoring, fail to identify 71% of malicious websites. Instead, Allure Security takes the fight to the enemy's gate with faster, more accurate detection and a unique method for neutralising the threat."
Shaul says the company's AI-powered engine outperforms traditional mechanisms and other offerings in both speed and accuracy. Allure Security shortens a scam's lifespan to reduce fraud losses, curtail brand damage, increase customer satisfaction, and mitigate staff burnout.
Bob Davoli, Gutbrain founder and managing director, says, "Every second that a counterfeit website, mobile app or social media account lives online, the victim brands and consumers take a hit, losing significant time and money.
"I look forward to working with Josh and the growing team to continue innovating to protect brands and their customers and make digital commerce trustworthy and secure," he says.
Allure Security aims to safeguard digital brands, mitigate fraud, and reduce the workload for security teams. The company's patented artificial intelligence system automates the analysis of tens of millions of websites, apps, and other online content and powers a multi-faceted response to disrupt and eliminate brand abuse before damage occurs.