San Francisco-based startup Effectiv raises $4.5 million in seed funding to combat AI-generated fraud and enhance real-time fraud and risk management solutions.
San Francisco-based startup, Effectiv, specializing in real-time fraud and risk management, has successfully secured an additional $4.5 million in seed funding, bringing its total funding to over $9 million. The recent funding round was led by Better Tomorrow Ventures, with participation from Accel and undisclosed angel investors. Effectiv’s primary objective with this funding is to combat the increasing challenge of AI-generated fraud, including deepfakes and voice synthesis.
Ravi Sandepudi, CEO and Co-founder of Effectiv, emphasized the critical issue of fraudsters using advanced technology to manipulate voices, images, and videos to gain unauthorized access to financial accounts and perform fraudulent banking transactions. The company’s AI-driven solutions currently cover payment fraud detection, customer and business onboarding verification, and compliance management. Having already facilitated over $27 billion in financial product transactions and managing over $100 million daily, Effectiv is preparing to introduce DeviceAI. This new feature will analyze and flag suspicious user behavior on devices, enhancing the payment fraud solutions ahead of the financial industry’s adoption of FedNow, an instant payment service launched by the US Federal Reserve.
Effectiv’s founding team consists of Anupam Tarsauliya, Jonathan Doering, Ravi Sandepudi, and Ritesh Arora, who previously worked together at fraud detection software company Simility, acquired by PayPal in 2018. Their combined expertise in fraud prevention, machine learning, and AI, with experience at companies like Google and Walmart, has positioned Effectiv as an expert in the field.
Sheel Mohnot, Co-founder of Better Tomorrow Ventures, praised Effectiv for their cutting-edge technology and their ability to address significant challenges faced by the financial industry, affirming their expertise in fraud detection and AI.
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The Entrepreneur Today Desk