A Polish Solution to Plague of Online Account Takeovers Powered by $6.7M Series A
Atmos Ventures and ARIA are leading Nethone's most recent fundraising alongside Innovation Nest, Plug and Play Ventures, Firlej Kastory and several business angel investors. Series A will allow Nethone to accelerate its go-to-market efforts and further strengthen its proprietary Know Your User (KYUTM) profiling technology to equip global leaders with the right tools against fraudsters.
COVID-19 boosted the significance of cybersecurity given the pandemic-induced growth of demand for direct-to-customer online commerce (both web and mobile) and the associated next-generation financial services. The past 12 months provided Nethone with sufficient momentum to more than double its client base, but also enjoy increasing volumes in onboarded accounts across eCommerce, digital goods & services and financial services verticals.
Fighting fraud in the COVID era
The last year has seen an unprecedented spike in fraudsters’ activities. COVID-19 has fueled a "professionalization of fraud" trend that Nethone has been observing systematically escalate since the company’s inception in 2016. “Barriers to entry for fraudster-wannabes have been steadily decreasing. More and more sophisticated SaaS-based tools became available for anyone with some financial resources at their disposal. Today, these are advanced technical solutions built by well-organized, highly experienced groups of rogue IT experts. Wrapped in a user-friendly interface and excellent customer support they allow for complex anonymisation and automation functionalities as well spoofing of historically trusted digital identities that most of the incumbent fraud detection solutions stand no chance of spotting” – states Hubert Rachwalski von Rejchwald – Nethone’s CEO.
“The forward-looking answer to anyone who wishes to effectively transact online is to deeply understand every single user, as they browse the website or use a mobile app. Our KYU profiling technology gives access to first-hand real-time insights about what is really happening with the device, how this device interacts with the servers of the platform and, last but not least, what is the raw behavior - keystrokes, mouse movements, gyro or accelerometer readings, touches on mobile). These are currently over 5000 attributes that we are extracting passively in the background about every single user thanks to years of targeted research and engineering, Importantly our goal is never to affect the customer journey by staying invisible in the background nor invade end-user privacy thanks to the low-level nature of the attributes we collect” – adds Aleksander Kijek, Nethone’s CPO.
Besides expanding its go-to-market efforts, the plan is to use the capital to increase the velocity of roadmap progression with a constructive obsession with features that will maximize perceived utility among the company’s target segments.
Series A led by international investors
Today Nethone’s market success is fueled by: (i) first-hand expertise concerning modus operandi of fraudsters automatically converted into engineering; (ii) unique profiling capabilities on mobile; (iii) state-of-the-art passive behavioural biometrics for recurring user authentication; and (iv) explainability of its machine learning that boosts client adoption.
Nethone’s new investors are internationally known for their investments in transformational high-tech scale-ups focused on research, development and commercialisation of cutting-edge technologies.
“With the post-COVID critical significance of fraud prevention and the fierce competition in creating the frictionless user experience, Nethone has a novel approach to profiling technology fueled by machine learning. And since Atmos is focusing on developing deep technologies in ML-driven commercial solutions, Nethone Profiler combined with the explainability of the machine learning models was an obvious choice for us,” said Hadi Solh, Managing Partner at Atmos. “We are elated to join the team to arm online merchants with deep tech tools against fraudsters.”
“The accelerated growth of eCommerce in the pandemic era - up 30% in value by 2020, naturally increases the scale of fraud in the digital space. Nethone solves the problem of online payment and identity fraud, with annual losses worth around $50 billion. Their technology provides maximum protection without affecting the end-user experience. I see huge potential for the application of this technology, including other companies in our portfolio - wherever payments are involved. I am impressed with Nethone’s highly motivated team, as well as the organizational maturity for an early-stage company. Nethone has proven successful in onboarding clients ranging from traditional banks to fast-growing start-ups across the globe" - highlights Dariusz Lewandowski, CEO of ARIA.
Diego Montes, Venture Capital Investor from Plug and Play Ventures underlines that Nethone’s innovative user profiling, which encompasses more than 5,000 attributes, combined with ML and a specialized team of data scientists, has demonstrated the strength of Nethone's products. These unique elements have allowed Nethone to win clients over its competitors proving their immediate ROI.
Check our website: www.nethone.com
This webinar discusses how email verification and fraud prevention solutions can help businesses improve their email deliverability rates, reduce spam, and increase ROI while protecting their email reputation by identifying spam traps. As well as the benefits of having a frictionless user experience for businesses.
This webinar will cover key learning points, including:
- The benefits of email reputation scoring in identifying fake accounts, high-risk payments, chargebacks, bots, and similar high-risk behavior.
- Leveraging email intelligence to identify newly created email addresses, bot-generated accounts, and high-risk behavior.
- How email verification and fraud prevention solutions can help businesses improve email deliverability rates and inboxing rates (less hitting of the spam folder). This can in turn boost customer engagement and revenue.
- The role of fraud prevention solutions in identifying and preventing fraudulent activity related to email, including phishing attacks, account takeover attempts (ATO), business email compromise (BEC), and other scams.
- How fraud prevention solutions can help businesses achieve a frictionless user experience while maintaining strong security measures. This reduces the risk of fraud while improving the customer experience.
Fraud fighters at marketplaces must identify and mitigate fraud from multiple directions: buyers, sellers, businesses, drivers, and more. In this session, two experts in marketplace fraud will discuss increasingly complicated forms of two-sided fraud, from money laundering to account takeovers to the tools available for criminals to purchase on the deep and dark web. You'll hear real stories from the front lines and come away with actionable fraud solutions for your own company, even if you don't work for a marketplace.
Passwords are broken. Relying on a username/password combination for user authentication and security is like expecting a screen door to keep intruders out of a house. Fraudsters can easily break username/password combinations to take over good user accounts.That’s why biometrics will play a key role in the future of digital authentication and security, especially for companies in highly regulated industries. Biometric systems that rely on facial recognition and other methods provide strong identity protection for users – and help keep business compliant with KYC and similar regulations.
Sift's Brittany Allen will provide a transparent look into how merchants can tackle one of the most challenging forms of fraud. With real use cases of collusion fraud from across multiple companies' experiences, plus examples of criminal chatter from the deep and dark web, attendees will leave with clear takeaways to improve their own team's fraud prevention processes by leveraging internal data, machine learning, and partnering with knowledgeable fraud fighters.
During the session, Brittany will discuss the inner workings of the most prevalent and emerging types of fraud marketplaces encounter, including:
ATO's and Merchant Fraud: Whether it's a new account or the ATO'd account of an inactive seller, we'll cover the potential risk of marketplace collusion.
BNPL Fraud: A fraudster controlling both a seller and buyer account who selects installment payments at checkout, eventually building to $200,000 in payouts.
Empty Package/ Item Not Received Fraud: As a marketplace, when it comes to empty package claims, how do you know which side to believe? And what if both sides are actually fraudulent and your marketplace isn't the target, but the postal service is?
Voucher and Points Cashout: How to prevent fraudsters from abusing vouchers and promos.
27% of the global merchants that participated in MRC's 2022 Global Payments and Fraud Report experienced some form of ATO fraud, and this attack method now ranks as the fifth most prevalent for North American merchants. This session will explore some of the inventive ways that accounts-based attacks are carried out and monetized. We will deep-dive into the strategies merchants can employ to reduce their exposure to ATO fraud, to better protect customer accounts and their own brand.
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While this change in consumer behavior has led to an increase in revenue through online and mobile channels, it has also come with a sinister partner: an increase in digital fraud losses.
In an increasingly anonymous purchasing environment, businesses and platforms need to take precautions to reduce risk while avoiding placing undue friction on good, low-risk customers. The key is connecting consumers’ digital information to their devices, understanding device risk and identifying signals of fraudulent behavior.
In this webinar, we will discuss:
Join Vesta’s very own Chief Product Officer, Hrishi Talwar and VP, Machine Learning Engineering, Jack Kohoutek, as they discuss the eCommerce fraud landscape (threats and trends) and the strategies merchants should be taking to prepare for this holiday season.
Don’t miss out on this opportunity to get ahead of fraud this holiday season!
What were the trends that we saw in the digital commerce sector in 2022?
Spoiler alert - there was the old favorites of Account Takeover (ATO) and Account Opening (AO) fraud. But there were also innovative efforts to combat fraud by unifying security and fraud teams, eliminating unwanted, automated traffic, understanding the intent of the end-user behind the keyboard, and reducing friction for legitimate customers.
Join us on our journey through what 2022 looked like for merchants who transact online.
- Protecting customers by aligning your security and fraud strategies
- Blocking tactics used by criminals to bypass defenses like CAPTCHAs and browser fingerprints
- Neutralizing cybercrime retooling attacks that lead to ATO
Journey Orchestration has become a "buzz-term"; in fraud prevention, but what does it actually mean and why does it matter? In this webinar we'll take a look at some of the key fraud use cases, and unpick how viewing these via the lens of customer journey orchestration, rather than a point-in-time risk assessment, can make a huge difference to revenue and customer experience.
- How is Account Takeover influenced by behavior pre-authentication?
- Why does understanding bot behavior help better prevent New Account fraud?
- What makes purchase scams unique in the fraud prevention world, and how can they be detected and blocked?
- Have a new understanding of some common fraud threats, and why they have become harder to tackle
- Be able to articulate why understanding user behavior across an entire digital session, rather than at a moment-in-time, is important
How iGaming Industry Growth and Fraud Correlate:
The global online gambling market size has a compound annual growth rate of 13.2%. Driven by the popularity of mobile gaming, the market value is projected to generate just over $117 billion by 2025.
This massive industry growth has led to fraud increases. For example, bonus abuse rose 72% between 2018 and 2019, and account takeovers increased by 90% from 2020 to 2021, costing an estimated $11.4 billion in damage. Balancing fraud prevention with a positive customer experience is a big challenge for operators. But there is a solution. And awareness of common types of fraud and how to stop them is the first step.
At SEON Technologies we have released new information on the collection countries that are most and least at risk of cyberattacks. We have also taken a close look at the most common types of cybercrime occurring in the US.
Dubbed the Global Cybercrime Report, the report explains how several countries are the safest in the world from fraud and other cybercrime. and why others are not. Our methodology for this research was based on how companies and public infrastructure are all being fairly well protected through both legislation and technology at their disposal.
Understanding the intent of bad bots vs. humans or good bots is vital as all industries face new challenges in acquiring the necessary visibility of their traffic, and subsequent analysis required for rapid and effective attack response that doesn’t sacrifice the user experience.
In this guide, Netacea takes an in-depth look at what bots are doing on your website, evolving bot threats and what you need to know to mitigate risks in your industry.