Arkose Labs, a cybersecurity startup located in San Francisco, has recently raised $70 million in a Series C round of funding. This brings the total of funds raised by the startup to a staggering $115 million.
The fresh capital will be used to further develop Arkose Labs’ fraud detection platform and expand their reach into the global market.
Overview of Arkose Labs
Arkose Labs delivers fraud and abuse prevention technology that enables businesses to eliminate account takeover, fake accounts and payment fraud, while providing excellent customer experiences. Its unique approach combines real-time collective intelligence, machine learning technology and a knowledge of global internet threats. Using this approach, the company can familiarise itself with users’ behaviours on its platform and detect any suspicious activities in real time.
Arkose Labs’ solution works in the background to accurately detect threats without user tagging or manual triage by business owners or operations teams. This makes it easy to deploy without disrupting existing user experiences, which reduces customer drop off rates. In addition, the solution is backed by multiple layers of defence that protect businesses against advanced threats such as automation, botnets and targeted attacks that circumvent traditional rule-based systems.
If a threat is detected, the platform automatically blocks access. The user must prove their identity through additional steps such as challenge-response questions, phone verification or biometric authentication. This helps ensure businesses have reliable protection against automated attacks at scale with minimal disruption for users’ online experience.
Arkose Labs nabs $70m Series C
Arkose Labs, the pioneering fraud and abuse prevention technology provider, has announced it closed a $70 million Series C funding round led by Vintage Investment Partners. The round also saw participation from current investors Sorenson Capital and Stripes Group, with Hawaiian super angel investor Eric Munro joining as a new strategic investor. This current funding brings Arkose Labs’ total capital raised to date to $110 million.
The new capital will accelerate product development initiatives and fuel global expansion of the company’s robust platform for tackling the rise of online account takeover and application fraud, bad bot attack protection and real-time man-in-the-browser protection capabilities. Arkose Labs has pledged to expand into markets outside the United States in 2021 with regional operations in London, Tokyo and Seoul, among others, as part of its series C funding announcement.
The company’s unique approach uses advanced risk analytics and dynamic challenges that prevent fraudsters using stolen data or bots from taking over accounts or executing malicious transactions in real-time on web and mobile applications. Since founded in 2016, the secure technology developed by Arkose Labs has been adopted by leading eCommerce companies including E&Y Global Limited., Twitch, Electronic Arts (EA), Singapore Airlines and WordPress Jetpack among others who have leveraged cost savings up to 90 percent compared to traditional fraud mitigation technologies.
What is Arkose Labs?
Arkose Labs is a fraud detection technology company that uses innovative methods to detect and mitigate online fraud and abuse. Founded in 2015, the company has seen tremendous success, recently closing their Series C funding round at $70 million in November 2020.
This article will look at what Arkose Labs does and how their technology works.
Arkose Labs’ fraud detection technology
Arkose Labs is an advanced fraud detection and protection platform that can help businesses identify and prevent data breach attempts, attacks from bots and automated scripts, payment fraud, account hijacks and other malicious activity. The company has developed a powerful cloud-based solution that uses multiple factors, such as behavioural analytics, machine learning models, geolocation data and more to identify legitimate user interactions and detect suspicious activity.
Arkose Labs’ innovative technology provides valuable insight into how customers interact with brand websites, mobile applications or APIs in real time. To give clients complete protection from online criminals trying to abuse their services or products with malicious intent, the platform offers layers of analysis that create an adaptive security envelope around web and mobile properties it is protecting. With this technology, businesses can rest assured that their websites are safe from fraudulent activities.
Once detected by the fraud detection solution of Arkose Labs, all malicious activities are timely blocked before access to resources is granted; this will ensure no harm occurs even when there is a breach attempt. The award-winning platform also adapts to changing behaviour patterns over time to accurately detect new threats and continuously protect customers’ experience on the digital assets within the scope of protection.
Features of Arkose Labs’ fraud detection technology
Arkose Labs’ fraud detection technology is a powerful cloud-based solution that helps reduce user risk and eliminates fraudulent activity. It uses advanced machine learning (ML) algorithms to perform real-time, adaptive detection of fraud tactics. In addition, these algorithms are constantly updating to identify new threats as they emerge, which makes it an excellent choice for businesses wanting to stay one step ahead of criminals.
The solution offers intuitive plugins into popular platforms, helping users deploy their defences quickly and efficiently. In addition, an automated risk score can also assess user sessions based on the analysed traffic behaviour. This helps ensure a safer online experience for users by screening out suspicious activities.
Overall, Arkose Labs’ fraud detection technology is designed to improve security outcomes while reducing operational costs associated with manual operations and manual responses typically required when dealing with fraud attempts. With its reliable ML algorithms and ability to integrate quickly into existing platforms, this system ensures that users get real-time protection against sophisticated threats while keeping operational costs down.
Benefits of Arkose Labs’ Fraud Detection Technology
Arkose Labs’ fraud detection technology is designed to help companies protect their customers from fraudulent activities. The technology uses a multi-layered approach to detect, mitigate, and respond to fraudulent activities. With the help of state-of-the-art machine learning technology, the system can quickly and accurately detect suspicious activities. The system also allows companies to customise their fraud detection strategies to manage risk better.
This article will discuss the key benefits of Arkose Labs’ fraud detection technology and why companies should invest in it.
Improved user experience
Arkose Labs’ robust fraud detection technology provides businesses with improved user experience and significantly reduces fraud losses. By leveraging proprietary risk analytics and a range of advanced data elements, Arkose Labs can accurately distinguish between genuine and high-risk user activities to ensure that only legitimate customers can access online accounts and websites.
Arkose Labs’ fraud prevention system identifies dynamic user behaviours outside of acceptable parameters for legitimate users. The system responds in real time, applying custom challenge requests on suspicious behaviour such as access through proxy services, multiple device logins, simultaneous logins from different geographic locations, or using significantly different access speeds. These challenges deter malicious actors from exploiting the system.
The challenging mechanism also helps ensure that legitimate customers can easily pass the security checks without entering complex CAPTCHAs or OTPs which can be inconvenient or annoying. This improves the overall user experience while providing robust security to websites and platforms against attackers.
Arkose Labs’ fraud prevention technology is highly configurable with customizable techniques according to specific business requirements, allowing businesses to tailor their fraud detection solutions according to their specific needs or preferences. With integrated support for risk segmentation management, adaptive tuning resources and abundant analytics about fraudulent behaviour over time, Arkose Labs helps businesses stay ahead of bad actors and prevent potential losses from online fraud without compromising on convenience for authentic users.
Enhanced security
Arkose Labs’ fraud detection technology provides enhanced security to companies by leveraging advanced AI and machine learning algorithms. This technology is designed to detect and mitigate fraudulent activities in real time and provide a secure platform for businesses to operate on.
The ability to quickly identify fraudulent activity allows organisations to confidently decide that their operations are protected from malicious actors. The technology combines risk assessment and monitoring capabilities with data profiling, user behaviour analytics, and threat intelligence for a comprehensive fraud prevention solution.
As a result, businesses can experience improved customer trust and loyalty, cost savings through reducing manual reviews, faster detection of anomalous activity, greater operational efficiency from automation, and better compliance with applicable regulations. In addition, the platform provides insight into how customers interact with the company’s digital products for better customer engagement throughout the customer lifecycle.
Reduced costs
The fraud prevention technology provided by Arkose Labs helps businesses safely reduce their costs associated with fraud. The technology leverages an advanced machine learning platform that has been trained on over 10B in transactions. This allows for an accuracy of 99%+ in identifying fraudulent transactions, making it a reliable solution for reducing the costs associated with fraud prevention.
Arkose Labs’ technology also enables businesses to proactively protect themselves from malicious actors attempting to commit fraud, rather than having to respond after the fact. With the help of AI-driven analytics, it uses thousands of data points that enable a more complete understanding of a transaction and provide greater accuracy when detecting suspicious activity.
The technology also provides detailed insights into suspicious behaviours, including IP addresses, geolocation and device data, which allow businesses to take more timely and accurate decisions to stop criminals quickly and cost-effectively. No matter your business size or whether you are running B2B or B2C solutions – Arkose Labs helps you reduce your costs associated with deterring fraudsters.
Use Cases
Arkose Labs’ fraud detection technology is a powerful tool for businesses to detect and prevent fraudulent activity. It is based on a system that combines behavioural biometrics and machine learning to detect fraudulent activity.
In this section, we will explore different use cases for the fraud detection technology provided by Arkose Labs.
Online banking
Arkose Labs’ fraud detection technology provides customised solutions to help online banking platforms protect customers from fraud. This expands beyond traditional fraud prevention methods, such as two-factor authentication, by incorporating behavioural analytics and dynamic challenges. This multifaceted approach allows a more comprehensive security system to detect and respond to an ever-evolving threat environment.
The first layer of defence helps prevent fraudulent attempts from entering the system. Arkose Labs utilises advanced Machine Learning algorithms to identify anomalies by comparing customer activity to existing profiles and expected behaviours, allowing for accurate identification of potentially malicious requests.
The next part of the solution is a set of dynamic challenge responses designed to deter attackers. For example, depending on the risk posed by an individual user’s request, the system may ask them to answer a series of questions or provide additional authentication documentation to verify their identity and legitimacy. The goal is to make it difficult enough for attackers that they will abandon their efforts and target an easier victim instead.
Finally, Arkose Labs employs continuous monitoring techniques which allow financial institutions to use its service to protect themselves in real-time against new threats as they arise without needing any manual intervention or alerting process. This ensures a seamless experience for customers while providing peace of mind that all suspicious actions are being addressed proactively by the security system in place.
E-commerce
E-commerce is one of the key use cases for Arkose Labs’ fraud detection technology. The technology is designed to identify malicious web traffic in real time and block fraudsters from exploiting e-commerce sites.
Through its combination of challenge response, risk analytics, IP reputation scoring, and machine learning algorithms, Arkose Labs’ solution can accurately detect malicious activity — such as account hijacking — quickly and with high accuracy. It can even detect repeat offenders attempting similar attacks across multiple e-commerce sites.
With its powerful protections in place, business owners can increase the safety of their customers’ data and prevent fraudulent transactions from occurring on their site. In addition, by reducing fraudulent activity allegations near-impossible chargebacks from online transactions, Arkose Labs’ solution also helps businesses reduce costs associated with e-commerce fraud prevention activities while improving customer experience through improved security.
Gaming
The gaming industry faces unique challenges in fraud prevention. In response to massive growth and rising costs, companies need to maximise fraud detection accuracy while ensuring player experience is not adversely impacted.
Arkose Labs’ fraud detection technology is well-suited for the gaming industry, providing effective defences against large-scale attempts to game the system.
Arkose Labs’ advanced anomaly and challenge-response capability allows gaming companies to accurately detect fraudulent activity without compromising player experience. In addition, our risk engine combines various risk factors from device information, IP address, and behaviour analytics to identify and properly mitigate suspicious activities. This empowers companies to offer seamless gaming experiences for users while detecting and eliminating malicious accounts for zero tolerance towards fraudulent activities.
Our platform also uses Arkose Labs’ proprietary techniques such as adaptive fingerprinting and real-time reCAPTCHA which enable accurate rate limiting decisions with minimal user friction, thereby reducing the number of legitimate players wrongly impacted by false positives. Additionally, with risk data from multiple sources further enhanced by Arkose Labs threat intelligence database, our cloud API enables an efficient and secure response in milliseconds across all verticals among which Gaming is a major one.
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