Israeli fraud prevention company Identiq announced today the completion of a seed funding round of $5 million led by Entrée Capital, with the participation of Slow Ventures, Vertex Ventures and Oryzn Capital. The Tel Aviv-based company also announced the launch of its Anonymous Verification Network, enabling companies to work together to fight fraud.
Identiq has created a distributed network allowing members to positively validate new users, and vouch for ones they already know, without sharing any personal user data whatsoever. Identity can be verified at critical moments in the customer journey, like onboarding or first payment, by making crucial connections between data points such as email, phone, address, IP, device or funding source, etc. This new approach leads to more accurate decisions, lower decline rates, reduced fraud, and better user experience for consumers.
Until now solutions attempted to validate identity information using large databases of private and personal user information, which by nature involve the risk of data being shared without user consent, or even stolen. Companies using these centralized solutions must expose their own user data, putting them at risk of breach-by-proxy, disclosing trade secrets, and violating privacy regulations.
Identiq, on the other hand, does not collect, share or store any user data whatsoever. Their FAIR (Fully Anonymous Identity Resolution) technology uses proprietary cryptographic protocols to obtain validation from other network members while preserving complete consumer privacy. This makes it fully compliant with GDPR, CCPA, and other privacy regulations, and the first solution designed to complement the new sensitivities arising around such data privacy issues.
Published by Globes, Israel business news - en.globes.co.il - on May 28, 2019
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