Since the number of digital transactions has gone up over the last year, cybercriminals have been having a field day. According to the FBI’s 2020 Internet Crime Report, the number of possible crimes that may have happened online rose by 61% to 791,790 in 2020.
Victims lost more than $4.2 billion because of these crimes, including credit card fraud, phishing, identity theft, and personal and business data breaches.
Because of this rise in crime, more and more people are using the services of the companies like Sift, which tries to predict and stop online fraud even faster than criminals can come up with new ways to do it.
The Company Sift Insight
In 2018, the San Francisco-based company Sift looked at the risk of more than $250 billion worth of transactions, which is twice as much as it will do in 2019.
The company has over a few hundred clients, including Twitter, Airbnb, Twilio, DoorDash, Wayfair, and McDonald’s. It also has a worldwide data network that processes 70 billion events every month as per Fraud detector software sift 50m 1bazevedotechcrunch.
Global network fraud detector software Sift said today that it has successfully finished a $50 million financing round. This means that the company is now worth more than $1 billion.
Insight Partners led the funding, and Union Square Ventures and Stripes participated.
Since Marc Olesen became President and CEO of the company in June 2018, the business has grown by a factor of three, according to Olesen, even though the company refused to give specific sales data. Sift graduated from the Y Combinator incubator in 2011, and since then, the company has been able to raise a total of $157 million.
The Company Sift Goal
The goal of the company Sift’s Digital Trust & Safety platform is not just to help retailers fight online fraud and abuse but also to reduce friction for consumers. There seems to be a thin line between looking out for a business owner’s best interests and annoying a client just trying to do their job.
They cleaned the money by giving a small amount to themselves, and at the same time, they tested the validity of the stolen cards so they could use them on another site to make much bigger purchases he said. Laundering money means moving it from one place to another without anyone knowing.
In a separate incident, the business discovered that dishonest people were using stolen credentials to access services like meal delivery through the social media platform Telegram.
Sift says that its models get smarter with each new client and that the data it has been collecting since the beginning has allowed it to serve as the central nervous system for fraud teams.
The Comments Made by the Directors
Jeff Lieberman, a member of the Sift board of directors and the managing director of Insight Partners, said that his company first invested in Sift in 2016 because it was clear that online fraud was “rapidly growing.” He said that it was growing in terms of the amount of money stolen and the number of ways that cybercriminals stole from consumers and businesses.
Sift has an innovative way to fight fraud that combines vast data sets with machine learning, and hundreds of online companies have used it and found it helpful, he wrote in an email. Sift has proven its worth to hundreds of online companies in the past.
Lieberman said, Because the product and company are so solid and the growth potential is so great, Insight contacted Olesen and the Sift team before they started talking to outside investors as part of the current process of financing
Olesen said that Sung’s experience guiding businesses through a growth period like what Sift is going through would be helpful to the company. This made people wonder if it meant that Sift would go public soon. Also, the corporation is looking into possible mergers and acquisitions for the first time.