In an era when fraud incidents are increasing at an alarming rate, companies tend to take more and more preventive measures in order to reduce the chances of falling victim to fraud. The rise of technology and digitalization significantly contributes to the prevention and detection of fraud. In particular, AI has numerous applications that provide the ability to detect fraud incidents in various sectors and especially where personal and confidential information is present, such as credit cards. More generally, AI technology is mainly used for task automation, behavioral analysis, customer service and fraud detection. Over time, there has been more and more investment in companies specializing in AI technology. At this point, it is worth mentioning the top fast-growing fraud detection companies in Europe for 2020, according to Dealroom.
First on the list is Nethone, a company founded in Poland in 2016 by a team of experienced data scientists, commercial security experts and risk managers, with CEO Hubert Rachwalski and funding of €910,000. It is a data science company specializing in fraud prevention and business intelligence driven by AI technology. Nethone operates on a global scale with the aim of detecting fraud incidents mainly involving customers’ credit cards.
Second on the list is Shift Technology in France, founded in 2013 by David Durrleman, Eric Sibony and Jeremy Jawish, with funding of over €89 million. The company was created to use AI technology, which can “unlock” the future of insurance, address automation challenges and facilitate fraud detection, while also enabling insurers to deliver exceptional customer experiences. It focuses on creating solutions based on AI technology and aims to transform the insurance industry with this technology.
Third on the list is Red Points, founded in Spain in 2011 by Josep Coll and with approximately 58 million euros in funding. Red Points protects brands and their content in the digital world. It uses its proprietary technology, which is based on machine learning algorithms, to scan the internet and detect incidents of infringement and fraud. The company provides its clients with full visibility and intelligent intelligence through a real-time reporting tool.
Fourth on the list is buguroo in Spain, founded in 2010 by Pablo de la Riva with funding of 16,000,000 euros. The Spanish cybersecurity platform buguroo detects all types of fraud. Initially, it was created as a CaaS (CyberCrime as a Service) startup. Gradually, as the activities of fraudsters change and evolve, protection against these attacks requires improvement. buguroo offers protection against hackers with deep learning technology that combines malware detection, device evaluation and biometric behavior.
Fifth on the list is Authenteq in Iceland, founded in 2015 by Adam H. Martin, Kari Thor Runarsson and Runar Karlsson and has approximately €7 million in funding. It is an authentication and digital identity platform that allows anyone to verify their identity directly and use their digital biometric passport on any platform or website to prove their identity. The Authenteq ID is owned and controlled by users with their personal information stored on the blockchain. The initial registration takes less than 90 seconds and is fully automated, helping to prevent identity theft and fraud.
Sixth on the list is Fraugster in Germany, founded in 2014 by Max Laemmle, with funding of around €17 million. Fraugster is an AI-based software that prevents fraud in online retail. It has developed a proprietary technology that takes data from various sources and analytics and verifies whether a transaction is fraudulent or not directly. It does this by monitoring thousands of data points and building a picture of the user’s trustworthiness and verifying the actual transaction.
Seventh and last on the list is Calltic, founded in 2017 in Belgium by Guy Van der Meeren, with funding of 1,500,000 euros. This is a startup that has developed a promising new technology for detecting fraud in the telecommunications sector. Its solution for telecommunications fraud is advertised to outperform existing solutions based on CDR. The company assures that its solution is capable of detecting fraud quickly, effortlessly and accurately.
