Arkose Labs, a provider of online fraud prevention technology, has received a strategic investment from PayPal.
San Francisco-based Arkose Labs provides businesses with anti-fraud tools which combine user risk assessment and sophisticated enforcement challenges. The certainty around the company’s enforcement challenge gives immediate feedback on the telemetry, providing unprecedented insights into attacker identification and classification, the company claims.
Clients can use the technology to protect themselves from account takeovers, fake users, spam, carding (multiple payment authorisation attempts which verify the validity of stolen gift cards), auction house abuse, ticket scalping, fake ratings, game hacking and scraping. The solution also empowers its users to block transactions.
Its services are used by businesses in sectors spanning the online communities and marketplaces, travel, banking, social media, ticketing and gaming.
This capital injection will be used to expand its product roadmap to include additional fraud prevention and digital identity capabilities.
Arkose Labs CEO Kevin Gosschalk said, “Our customers are some of the most respected global brands, and we are seeing some alarming statistics when we look at the combined data on our platform.
“We see a 10-to-1 ratio in automated, fraudulent login attempts versus legitimate account logins. Furthermore, these attacks are only one method that bad actors are using to commit fraud. We have prevented over $100 million of fraudulent activity within our customer base over the last 12 months.”
This new investment comes just weeks after Arkose Labs closed its Series A round on $6m. The round was led by US Venture Partners and was raised to support the hiring of more staff and build on its roadmap.
Arkose Labs’ total capital funding from external backers has reached $14m.
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