Effectiv, a scam detection and safety solution for banking institutions and fintechs, has secured $4.5 million in a seed fundraising round led by Better Tomorrow Ventures. Accel was one of the participants in the investment round, along with others.
“With a clear vision to combat the escalating challenge of AI-generated fraud, such as deep-fakes and voice synthesizing, the company has decided to utilise the newly acquired funds to develop innovative models tailored to counter these emerging threats,” Ravi Sandepudi, cofounder and CEO, Effectiv, said in a statement. The company is considering expanding its offerings to other geographies, it added.
Effectiv has assisted businesses in processing financial goods worth over $27 billion and handles over $100 million every day at present, as reported by The Economic Times.com
“While mechanisms such as one-time passwords or voice authentication were functional in the past, we are repeatedly seeing that they are easily compromised and no longer sufficient. For instance, a customer’s voice can now be forged in a few seconds with off-the-shelf AI. Therefore, taking a holistic evaluation approach is necessary,” Ritesh Arora, cofounder and COO, said.
“Effectiv is an expert not only in the fraud space but also in machine learning and AI. This combination makes them the most formidable team in the industry to tackle this problem,” Sheel Mohnot, cofounder of Better Tomorrow Ventures, said.
In 2021, Anupam Tarsauliya, Jonathan Doering, Ravi Sandepudi, and Ritesh Arora established Effectiv. It is a platform that FIs and Fintechs may use to manage risk and fraud in real-time. Enable solutions powered by AI for transaction monitoring, underwriting, and authentication. It assists clients in reducing the time, cost, and stress associated with fraud while automating compliance duties with a top-notch solution that combines human and artificial intelligence.