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Jumio, an AI platform that offers identity verification as a service, today announced it has closed a fundraiser of more than $ 150 million, bringing its total raised to $ 163 million. The company, which claims the tranche is one of the largest ever awarded to an identity verification startup, plans to allocate capital to hiring and expanding its customer base.
Javelin Strategy reported that 6.64% of consumers, or roughly 16.7 million people, were victims of identity fraud in 2017, up 1 million from 2016. In 2018, more than 2 , 6 billion records have been stolen or exposed in more than 1,100 data breaches worldwide. Perhaps this is why by 2022, 80% of organizations will be using document-centric proof of identity as part of their onboarding workflows, which is an increase from around 30% today. ‘hui, according to Gartner.
Jumio, based in Palo Alto, Calif., Was relaunched in 2016, when the company emerged from bankruptcy while under investigation by the United States Securities and Exchange Commission after restating its 2013 and 2014 financial statements. In 2019, the agency fined Jumio founder and former CEO Daniel Mattes more than $ 17 million to settle charges of defrauding investors, including Facebook co-founder , Eduardo Saverin.
Jumio is now owned by private equity firm Centana Growth Partners and says its products have verified more than 300 million identities for hundreds of customers, including Airbnb, Coinbase, United Airlines and Instacart. In 2018, Montreal-based Jumio AI Labs was founded, dedicated to the creation, experimentation and large-scale deployment of machine learning and deep learning technologies related to identity verification in line, data mining, fraud detection and risk scoring. And in 2020, Jumio claims to have achieved record revenues, culminating in the acquisition of the San Francisco-based anti-money laundering platform from Beam Solutions, which focuses on mobile transaction monitoring and case management.
Jumio integrates with websites, iOS and Android apps, etc. The platform combines biometrics for identity verification and “continuous” 3D facial authentication, powered in part by technology from Nevada-based FaceTec. Users first take a photo of their driver’s license, passport, or ID card, then use a mobile device camera or webcam to capture their face. During authentication, Jumio compares the “selfie” – a 3D face card containing 100 times the vividness data of a 2D photo – with the image on the aforementioned ID and resumes the selfie for good measure. .
Jumio claims to leverage 10 years of real-world data, hundreds of millions of domain-specific data points from 3,500 ID types in 200 regions, AI for vividness detection and face-based biometrics to power its authentication products. Beyond identity verification, Jumio offers services that monitor transactions and customers to identify suspicious or unusual activity. The company also provides solutions that automatically determine address credentials from images of utility bills, credit cards, and bank statements to validate and corroborate addresses with independent third-party sources.
“Jumio takes advantage of AI in every identity verification we process,” CEO Robert Prigge told VentureBeat via email. “Jumio uses AI to align the images of identity documents so that we can reliably optical character recognition (OCR) data. Jumio uses AI to inspect ID for signs of fraud or forgery. Jumio uses AI as part of its liveliness detection to make sure the person is physically present and to compare the photo of the selfie with the photo of the ID document. We’ve implemented dozens of AI and machine learning models to improve user experience, detect fraud, and accelerate customer experience. Powered by knowledgeable AI, Jumio’s OCR engine overcomes many limitations of traditional OCR and is capable of extracting very precise data – data that can be used to ping third-party databases or to verify age. of a person (depending on the date of birth). “
The pandemic has resulted in an increase in the types of frauds that Jumio claims his platform can actively prevent. A recent report from Socure found that fraudulent credit card applications jumped 93% from March to April 2020. Between March and the end of June, money transfer fraud attempts rose 43%, as banks competed. having experienced a 200% increase in fraud attempts on demand deposit accounts.
“The pandemic has accelerated digital transformation efforts as physical locations and face-to-face verifications have become impossible. When consumers turned to digital transactions during the pandemic, the need for businesses to verify user identities skyrocketed. Jumio processed its highest volume of identity checks in 2020, compared to any other quarter in company history, ”said Prigge. “Growth has also been driven by companies’ shift from data-centric to document-centric approaches to identity verification. This exodus was caused, in large part, by large-scale data breaches of personally identifiable information that made data-centric approaches less reliable. “
For example, Jumio recently partnered with delivery startup Rappi to help verify the identities of its new customers and couriers. Since the partnership with Jumio, more than 750,000 users have opened new Rappi payment accounts, according to Prigge. “At a time when remote operations have made it difficult to verify online identity, we pride ourselves on providing a secure solution for businesses to detect fraud and confirm that their users are who they claim to be,” did he declare.
Great Hill Partners led this latest investment in Jumio, one of the largest digital identity fundraisers. Jumio, a former funder of Millennium Technology Value Partners, now employs more than 1,500 people in offices in North America, Latin America, Europe and Asia-Pacific.
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