Allure Security announced the close of its $6.8 million seed funding round. Gutbrain Ventures led the round, joined by new Allure Security investors PBJ Capital and Impellent Ventures, and existing investors Glasswing Ventures, Zetta Venture Partners, and Portage Partners.
The investment comes amidst surging online fraud ($56 billion in identity theft and $20 billion in online payment fraud losses)– increasing demand for Allure Security’s technology. The company will use the capital to accelerate go-to-market activities, grow its team, and continue product innovations.
Originally funded by the US Department of Defense, Allure Security’s investors have decades of experience funding numerous companies in fraud detection and prevention, threat intelligence, and artificial intelligence (combined estimated market size of $92.9 billion).
Allure Security opens 2022 having achieved significant milestones:
- Increased go-to-market capacity by growing the sales and marketing teams
- New offerings for identifying fraudulent mobile apps and social media accounts
- Leadership team appointments including Vice President of Sales Jason Gonzales (Tenable, Cylance, and McAfee), Vice President of Operations Molly DeQuattro (Akamai and Harvard University), and Field Chief Technology Officer Mark Trinidad (Trustwave, Varonis, and McAfee)
“There’s a 76 billion-dollar digital fraud problem that legacy technology can’t seem to stop,” said Josh Shaul, CEO of Allure Security. “Allure Security’s AI-based approach to targeting the scam source destroys criminals’ business models – something traditional approaches fail at.”
Legacy approaches to deceptive online content, such as domain monitoring, fail to identify 71% of malicious websites. Instead, Allure Security takes the battle to the enemy’s gate with faster, more accurate detection and a unique method for neutralizing the threat. The company’s AI-powered engine outperforms traditional mechanisms and other offerings in both speed and accuracy.
Allure Security shortens a scam’s lifespan to reduce fraud losses, curtail brand damage, increase customer satisfaction, and mitigate staff burnout.
Gutbrain Founder and Managing Director Bob Davoli said, “Every second that a counterfeit website, mobile app or social media account lives online, the victim brands and consumers take a hit, losing significant time and money. I look forward to working with Josh and the growing team to continue innovating to protect brands and their customers and make digital commerce trustworthy and secure.”