THANK YOU FOR SUBSCRIBING
× 
Enterprise Security Mag Weekly Brief
Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from Enterprise Security Mag
Enterprise Security Magazine
Deduce
Democratizing Cybersecurity with Identity Behavioural Analysis
Ari Jacoby, CEOAs a leader in identity fraud prevention, Deduce gives companies of all sizes access to key identity insights that are applied at account creation on returning user authentication processes. This channels a massive volume of data describing risk and trust signals for over 450M unique, privacy compliant U.S.-based identity profiles (many online users have more than one email address).
“Cybercriminals have access to the same technology as defenders and are certainly more coordinated. Our goal at Deduce is to equip businesses with real-time identity intelligence to make informed security decisions to block identity fraud and provide a frictionless Trusted User Experience,” says Ari Jacoby, CEO at Deduce.
Deduce Identity Insights acts as cybersecurity radar and plays a vital role in both validating good users and detecting fraudulent activities. The solution is fuelled by the Deduce Identity Network, an ever-growing consortium of over 150,000 websites and applications that capture the activities of the transactional US population several times per week.
The Identity Network captures and processes over 1.4 billion digital interactions daily to build a diverse identity graph based on four discrete elements: Device, Network, Geography and Activity (login, checkouts, account creation, reset password etc).
“It takes a network to beat a network,” says Jacoby.
Identity Insights provides businesses with actionable data pertaining to a user’s behaviour over time. This is analysed by Deduce to determine “normal” activity. The Deduce Identity Network is usually the first to see identity fraud, such as Account Takeover fraud as a profile’s activity departs the norm. “If you neighbour started mowing their lawn at 10:00pm this would not be normal and you’d be suspicious, the same is true for identities on our network,” explains Jacoby.
Deduce Insights is used in both account creation or first-look scenarios as well as returning user authentication. Deduce integrates with leading Identity Verification platforms and Consumer Identity Access Management platforms, making implementation and configuration quick and simple. For first-look use cases behavioural analysis data becomes part of a layered defence offering unique identity insights into the historical behaviour of an identity prior to completing the onboarding process. For returning customer authentication Deduce Insights can be used to inform the authentication process, determining whether a Multi-Factor-Authentication or manual review is required based on dynamic risk and trust signals. Notably, Deduce Trust signals can be used to overwrite risk signals to reduce false positive MFA challenges, that is, the challenge of a legitimate customer - an action that not only caused frustration but can lead to reduced shopping cart completions and even churn.
Looking ahead, Deduce will amplify its platform to incorporate additional signals on both the risk and the trust side. The company also plans to add more partners into its identity graph, a database that stores critical identifiers including email, phone, and cookies that correlate with individual customers.
Most companies have a data poverty problem when it comes to fighting identity fraud. Deduce Insights addresses that in a unique way as part of a layered defence and the foundation for building a trusted user experience
Company
Deduce
Management
Ari Jacoby, CEO
Description
Deduce Identity Insights acts as cybersecurity radar and plays a vital role in both validating good users and detecting fraudulent activities. The solution is fuelled by the Deduce Identity Network, an ever-growing consortium of over 150,000 websites and applications that capture the activities of the transactional US population several times per week. The Identity Network captures and processes over 1.4 billion digital interactions daily to build a diverse identity graph based on four discrete elements: Device, Network, Geography and Activity (login, checkouts, account creation, reset password etc).
Deduce News
Deduce nabs $9m investment to challenge AI-generated identity fraud
Deduce Named a Winner at the Banking Tech Awards USA 2024
Deduce Wins the ‘Tech of the Future - Fighting Fraud’ Designation In FinTech Futures-Sponsored Awards
NEW YORK - Deduce, announced it was named the winner of the Tech of the Future - Fighting Fraud category at the 2024 Banking Tech Awards USA.
“At Deduce, we aim to equalize access to vital identity data, empowering businesses of all sizes to distinguish genuine customer actions from fraudulent activities with our proprietary Trust Score. This has become even more challenging, given the recent rise of AI-generated fraud, stated Ari Jacoby, founder and CEO of Deduce. “We are grateful that the judging panel has recognized our advancements in fraud prevention. Through our Deduce Identity Network, which processes over 1.5 billion authenticated events daily, our customers can enhance their fraud detection processes, resulting in improved customer experiences and reduced identity fraud.”
Generative AI technology can create fake identities with realistic-looking documents, biometrics, credit histories, and other characteristics that can deceive traditional identity fraud solutions and analysts. Deduce provides the only solution to prevent these “SuperSynthetic” identities from signing up as new accounts and to flag those already embedded among existing customers. Deduce uses the largest activity-backed U.S. fraud and risk identity graph to conduct multi-contextual, real-time data forensics at scale, adding critical context to the decision-making process.
“The Banking Tech Awards USA judging panel has awarded the highest scores to Deduce in the Tech of the Future – Fighting Fraud category,” said Tanya Andreasyan, Editor-in-Chief at FinTech Futures, the global media platform behind the awards. “Deduce stood out because of its ability to help financial institutions solve a critical problem – preventing AI-generated identity fraud. As technology advances and new types of fraud make their way to the forefront, solutions like the one Deduce provides can help organizations stay ahead of the curve.”
NEW YORK - Deduce, announced it was named the winner of the Tech of the Future - Fighting Fraud category at the 2024 Banking Tech Awards USA.
“At Deduce, we aim to equalize access to vital identity data, empowering businesses of all sizes to distinguish genuine customer actions from fraudulent activities with our proprietary Trust Score. This has become even more challenging, given the recent rise of AI-generated fraud, stated Ari Jacoby, founder and CEO of Deduce. “We are grateful that the judging panel has recognized our advancements in fraud prevention. Through our Deduce Identity Network, which processes over 1.5 billion authenticated events daily, our customers can enhance their fraud detection processes, resulting in improved customer experiences and reduced identity fraud.”
Generative AI technology can create fake identities with realistic-looking documents, biometrics, credit histories, and other characteristics that can deceive traditional identity fraud solutions and analysts. Deduce provides the only solution to prevent these “SuperSynthetic” identities from signing up as new accounts and to flag those already embedded among existing customers. Deduce uses the largest activity-backed U.S. fraud and risk identity graph to conduct multi-contextual, real-time data forensics at scale, adding critical context to the decision-making process.
“The Banking Tech Awards USA judging panel has awarded the highest scores to Deduce in the Tech of the Future – Fighting Fraud category,” said Tanya Andreasyan, Editor-in-Chief at FinTech Futures, the global media platform behind the awards. “Deduce stood out because of its ability to help financial institutions solve a critical problem – preventing AI-generated identity fraud. As technology advances and new types of fraud make their way to the forefront, solutions like the one Deduce provides can help organizations stay ahead of the curve.”
Freestyle Capital led the investment, joined by Foundry and True Ventures. This funding round holds significant importance as it enables Deduce to unveil their GenAI Identity fraud solution, marking its emergence from stealth mode. The fresh injection of capital will bolster the company's efforts in combatting the pervasive SuperSynthetic™ identity fraud that impacts various sectors, including the financial services industry, FinTech, and e-commerce.
The emergence of Generative AI has brought about a transformative shift in multiple industries, including fraud detection. Platforms such as FraudGPT have surfaced, providing fraudsters with new tools. These cybercriminals armed with AI and pilfered Personal Identifiable Information (PII) can now create plausible digital identities in large quantities. They can validate these identities using sophisticated deep fake biometrics and even craft online transaction histories. This advancement allows them to forge numerous SuperSynthetic identities that are nearly indistinguishable from genuine ones.
Ari Jacoby, CEO of Deduce, emphasized the gravity of the situation, stating, "We find ourselves at a critical juncture where the security and privacy of our most vital data face an unprecedented threat. Traditional fraud prevention methods are no longer sufficient to shield us from AI-generated fraud. With this new investment, we can introduce our solution to the market swiftly, a necessity to prevent this type of fraud from overwhelming the organizations we serve."
In the battle against AI-generated identities, Deduce recognizes the necessity for an extensive identity graph. This graph should encompass a substantial portion of the online U.S. population, with regular monitoring. To detect Super Synthetic identities during account creation and identify "sleeper" identities that have already infiltrated, Deduce relies on multi-contextual activity-driven intelligence.
Freestyle Capital’s Partner, Jenny Lefcourt, shared her insights, “We know the rapid adoption of generative AI will enable bad actors to use new technologies to perpetrate fraud. Every company that cares about customer data and identity will need a solution like Deduce provides immediately. Deduce has built a proprietary solution to tackle this new type of threat, so our decision to invest in scaling that solution was simple.”
Deduce employs multi-contextual intelligence in its approach, sourcing and examining real-time data from an array of sources to discern identity patterns and detect the digital forensic patterns induced by AI-generated fraud. Through these patterns, Deduce can pinpoint anomalies in seemingly regular identities and flag them for a thorough review.