Stopping online fraud and nefarious activity is becoming an increasingly essential task for enterprises and governments. Arkose Labs, a startup focusing on innovative technology to help “bankrupt the business of fraud.”
The startup’s platform is drawing attention from big investors. The company recently closed a $70 million Series C funding round, which was led by the SoftBank Vision Fund 2. Wells Fargo Strategic Capital, M12, PayPal Ventures, and other investors invested in the company outside of the Series C to bring the total funding amount to $114 million to date.
Management notes the latest funding will be allocated towards the continued development of its proprietary platform, global expansion, and expand employee count. The San Francisco-based startup previously closed its Series B in March 2020 and has since seen strong expansion.
Arkose Labs Notches Major Milestones in 2020
In 2020, the Arkose Labs platform analyzed over 15 billion online sessions, which led to 4.6 billion cyber-attacks being stopped and “wasted 40 million hours of fraudsters’ time,” according to the company.
“As more companies conduct business online, they become more vulnerable to online fraud. We believe Arkose Labs has cracked the code in fighting cybercrime, by making it financially non-viable for criminals,” said Nagraj Kashyap, managing partner at SoftBank Investment Advisers.
Gartner recognized the startup as a “2020 Cool Vendor,” as headcount doubled and the company opened a regional EMEA headquarters in London.
How Its Technology Differs
Unlike other cybersecurity applications, Arkose Labs developed its platform by working backward and understanding how digital thieves attack digital platforms. Once this is understood, the startup’s technology “implements strategies to make it more difficult for fraudsters to profit from attacks,” according to the company.
The idea behind taking a more proactive approach, as opposed to the industry-standard reactive programming, is to essentially curb and eliminate the economic incentive of launching cyber-attacks.
Arkose Labs’ technology has shown to be effective in defeating both automated and human-led cyber-attacks. The platform’s real-time traffic analyzer combines risk classification with enforcement challenges counter-measures. This allows regular, genuine traffic to pass through uninterrupted, while the targeted friction destroys the attacker’s profitability.