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Vendor Signifyd Inc. said it lined up $100 million in funding to fuel its growth as an e-commerce fraud-prevention specialist. Announced this week, the Series D funding comes as retailers struggle to find effective ways to counter sophisticated online criminals amidst burgeoning online sales.
E-commerce fraud over a two-year period through the end of 2017 increased 7% across all merchant categories, found Signifyd’s Ecommerce Fraud Index released in March. Account takeover fraud, in particular, is a problem for online retailers. Signifyd said this fraud increased 80% in the two-year study period.
Investors like Signifyd’s approach, which includes guaranteed fraud protection. This service puts a merchant’s transactions through Signifyd’s network to evaluate it for potential fraud. Chargeback protection kicks in with fraud or unauthorized charges. The service uses machine-learning algorithms, proprietary behavior technology, and data science to identify fraudulent orders. Signifyd says it serves more than 10,000 retailers globally.
This latest funding round follows a Series C total of $56 million a year ago. Lead investor in the current round is Premji Invest. Existing investors Bain Capital Ventures, Menlo Ventures, American Express Ventures, IA Ventures, Allegis Cyber, and Resolute Ventures participated, too.
