Investment demonstrates increasing momentum of cybersecurity startup in the online fraud prevention space
Arkose Labs, providers of online fraud prevention technology combining user risk assessment and sophisticated enforcement challenges, today announced PayPal (NASDAQ: PYPL) has made a strategic investment in the company. With this investment, Arkose Labs plans to expand its product roadmap to include additional fraud prevention and digital identity capabilities.
“When it comes to online e-commerce and financial transactions, PayPal is the titan of the industry,” said Kevin Gosschalk, CEO of Arkose Labs. “Their strategic investment in Arkose Labs signals their continued commitment to fighting fraud and ensuring that millions of users around the world can confidently complete transactions whether they are online, on a mobile device, in an app, or in person.”
Arkose Labs helps some of the world's most targeted businesses solve online fraud that can cost billions of dollars each year in financial losses with its sophisticated global telemetry, user behavioral risk assessment and patent-pending enforcement challenges. The certainty around the Arkose Labs enforcement challenge provides immediate feedback on the telemetry, allowing unprecedented insights into attacker identification and classification.
“With this additional infusion of capital, we plan to accelerate our product roadmap in digital identity capabilities that will make it possible for enterprises to establish trust with their online customers in a way never before possible,” added Gosschalk.
One factor driving growth for Arkose Labs has been the dramatic increase in Account Takeover (ATO) Fraud in the last year. The
2018 Identity Fraud Study by Javelin Strategy and Research concluded that account takeover losses more than tripled in the last year to $5.1 billion.
“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,” said Gosschalk. “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.”
Arkose Labs technology exclusively stops abuse before it occurs without adding friction to the user experience. Arkose Labs is the only solution provider to offer a 100 percent service level agreement that includes a money-back guarantee for customers in the event that the technology does not stop an automated attack. With the prevalence of more sophisticated automated attacks, adoption of Arkose Labs technology is accelerating across sectors including online communities and marketplaces, travel, banking, social media, ticketing and gaming.
Today’s news comes just weeks after the company announced it had successfully closed a
$6 million Series A round led by US Venture Partners. This funding expansion brings total outside investment to $14 million. Current customers include Electronic Arts, Singapore Airlines, Roblox, Kik and more.
About Arkose Labs
Arkose Labs is solving multi-million dollar online fraud problems for major global businesses in sectors including online communities and marketplaces, travel, banking, social media, ticketing and gaming. Our bilateral approach combines global telemetry with a patent pending enforcement challenge that stops fraud without false positives and without friction for users. Arkose Labs is based in San Francisco, Calif., with offices in Brisbane, Australia. For more information, visit
www.ArkoseLabs.com or on Twitter @ArkoseLabs.