Socure, an US based provider of artificial intelligence for digital identity verification, fraud prevention and sanction screening, has signed an agreement to acquire Effectiv, a real-time risk decisioning company, for $136M.
Effectiv’s open platform integrates any risk solution, including identity and payment fraud controls, credit underwriting, Know Your Business (KYB) and anti-money laundering (AML), to drive real-time decisions that solve the toughest risk challenges of our time – identity theft, account takeover, scams, and real-time payment fraud.
With this acquisition, Socure – which serves more than 2,700 customers and has verified more than 2.26B identities over the past 12 months – further solidifies its leadership position in the identity verification and fraud prevention market, and is propelled into the $200B enterprise fraud industry, which additionally encompasses payments fraud, credit underwriting, and AML transaction monitoring.
Effectiv was founded in early 2021 by Ravi Sandepudi, Ritesh Arora, Jonathan Doering, and Anupam Tarsauliya, fintech veterans who previously built risk platforms for industry giants like PayPal, Google, and Walmart. Socure first worked closely with the Effectiv founders during their time at Simility, a fraud platform that PayPal acquired for $120 million in 2018.
The entire Effectiv team will join Socure, spearheading Socure’s platform product, engineering and data science innovation, as well as contributing immediately to its enterprise go-to-market strategy.
“As we attained identity certainty to stop attacks and ensure trust at new account opening, many large partners asked us ‘why not apply the same view of identity to login, payments, authentication, account recovery and regulatory reporting?’”
said Socure founder and CEO Johnny Ayers.
Featured image credit: edited from freepik
