Q3 has wrapped up! It’s time for our quarterly investment update. Explore the latest funding rounds and acquisitions in the world of fraud and risk mitigation!

Funding

Descope

Descope has announced the extension and closing of its seed round with an additional US $35 million in new funding, bringing its total funding to US $88 million.
The round was offered to existing investors including Notable Capital, Lightspeed Venture Partners, Dell Technologies Capital, Unusual Ventures, Cerca Partners and Triventures.
In addition, Descope announced the formation of a new advisory board, which includes executives from major customer and partner organizations such as GoFundMe, Databricks, GoodRx, and MongoDB.

Seon

SEON, a fraud-prevention and AML compliance platform based in Austin, Texas and Budapest, Hungary, has raised US$80 million in a Series C funding round led by Sixth Street Growth, with participation from existing backers including IVP, Creandum and Firebolt, plus new investor Hearst Ventures.
The company uses a unified API-driven platform combining fraud detection and AML workflows, powered by 900+ real-time data signals, to serve thousands of customers including major digital brands such as Revolut, Plaid, Nubank, Afterpay and Spotify.

Feedzai

Feedzai secured $75 million in fresh funding, which has propelled its valuation to over US $2 billion. The company, which focuses on AI-driven financial crime prevention (fraud, AML, etc.), also announced a key role with the European Central Bank (ECB) for providing fraud detection for the digital euro. This milestone underscores the growing investor confidence in fintech/RegTech firms that leverage AI for highly regulated, high-stakes environments.

IVIX

The New York-based startup IVIX, which uses artificial intelligence to help governments and law-enforcement agencies detect complex financial crimes, has raised US $60 million in a Series B funding round. The round was led by O.G. Venture Partners, with participation from investors including Insight Partners, Citi Ventures, Team8, Disruptive AI, Cardumen Capital and Cerca Partners. With this investment the company’s total funding since founding in 2020 rises to about US $85 million. IVIX says its software leverages large-language models, graph-analytics and publicly-available data to uncover illicit offshore assets, layered money-laundering schemes, cryptocurrency networks and other forms of financial fraud that are challenging for traditional investigative methods.

1Kosmos

1Kosmos, a digital identity and passwordless authentication platform, has raised US $57 million in a Series B funding round led by Forgepoint Capital and Oquirrh Ventures, with participation from NextEra Energy Ventures, Gula Tech Adventures, and others, bringing its total funding to over US $72 million. The company will use the capital to accelerate global expansion across North America, EMEA, and APAC; enhance integrations with IAM, CIAM, PAM, and zero-trust platforms; and advance its AI-driven identity verification, biometric authentication, and blockchain-based identity proofing technologies. Positioned as a leader in “identity-first security,” 1Kosmos aims to help enterprises combat fraud, impersonation, and account takeover by combining verified digital identities with secure, frictionless authentication.

Adaptive

Adaptive Security announced a US $43 million Series A funding round, co-led by Andreessen Horowitz (a16z) and the OpenAI Startup Fund (marking OpenAI’s first investment in a cybersecurity company). The startup specialises in protecting organisations from AI-driven social engineering attacks — including deepfakes, vishing and smishing — by using AI-powered simulations, real-time risk scoring and tailored training. The fresh capital will be used to scale R&D, expand its engineering team, and evolve its platform ahead of increasingly sophisticated AI-powered threats.

Workfusion

WorkFusion has raised US $45 million in a funding round led by Georgian, with participation from investors including Serengeti Asset Management, Nokia Growth Partners, and others. The company, which pivoted in 2022 to focus on “agentic AI” specifically for financial crime compliance (AML, KYC, sanctions screening, transaction monitoring), says its AI Agents are deployed at 10 of the top 20 global banks and process over 1 million alert-hits daily; the new funding will support scaling these tools, expanding market reach and accelerating development for the roughly US $155 billion compliance operations market.

Casap

Casap has secured US$25 million in a Series A funding round led by Emergence Capital, with participation from Lightspeed Venture Partners, Primary Ventures, and the fintech arm of SoFi, bringing its total funding to about US$33.5 million. Casap aims to transform the payments-disputes process and tackle first-party fraud by using AI to automate the lifecycle of disputes—from intake through chargeback filing—delivering faster resolutions, cutting fraud losses by more than half, and improving the customer experience.

Vouched

Vouched has raised US $17 million in a Series A funding round led by Spring Rock Ventures. The investment will fuel the expansion of its “Know Your Agent” (KYA) platform, aimed at verifying and continuously monitoring both human and AI-agent identities, supporting open frameworks like the Model Context Protocol (MCP). Vouched positions the funding as an opportunity to scale globally, deepen product development, and set new standards of trust and compliance in environments where autonomous agents are increasingly active.

Contactable

Contactable, a South African digital identity and eKYC platform founded in 2012, has raised US $13.5 million in funding to scale its onboarding, identity verification, fraud-prevention and compliance solutions across Africa. The round was led by Venture Capitalworks, with participation from co-investors including Fireball Capital, Ke Nako Capital and Mavovo. The funding will support expansion into new African markets and fuel product development in areas such as ultimate beneficial ownership (UBO) verification, AI-powered risk signalling, self-sovereign identity (SSI) models and payments integration.

Yal.ai

YAL.ai, a UAE-based startup focused on secure digital communication, has raised $12 million to advance its mission of making scam-free online interactions the global standard. Founded in response to the rise of digital scams and impersonation threats, the company has developed an on-device AI platform that proactively detects and blocks fraud attempts before they reach users—without storing data externally. Positioned as more than just a fraud detector, YAL.ai aims to rebuild digital trust by offering privacy-first, real-time protection that prevents scams before they happen and empowers safer, more authentic online conversations.

CAF

CAF, a Brazilian startup specializing in digital identity and anti-fraud intelligence, has secured an investment of R$ 50 million in a funding round led by L4 Venture Builder (a fund backed by B3). The funding will support CAF’s growth strategy in Brazil and across Latin America, including the development of new AI-powered fraud-detection tools like “Deepfake Detector”, “Image Similarity Check” and “VerifAI Docs”. This marks L4’s first published investment in 2025, reinforcing its security-technology thesis and expanding its portfolio into digital-onboarding security.

Revel8

Revel8, a Berlin-based cybersecurity startup founded in 2024 that builds an AI-native platform to simulate deepfakes, phishing, vishing, and multi-channel attacks for enterprise employee training, has raised a €5.7 million seed funding round (bringing the company’s total funding to €7 million) led by Peak with participation from Fortino Capital, Merantix Capital and several business-angels.
The new capital will be used to expand its product development, scale its enterprise features, grow internationally, and help organizations build resilience in the face of increasingly sophisticated AI-powered social engineering attacks.

Acquisition

Incode

Incode has acquired AuthenticID, uniting two major players in digital identity verification to create what they call a global AI-first identity leader. The merger combines Incode’s advanced AI technologies—such as real-time personhood verification, deepfake detection, and multimodal fraud analysis—with AuthenticID’s strong enterprise implementation expertise in regulated industries. Together, they aim to strengthen defenses against emerging threats like synthetic identities, AI-powered fraud, and deepfakes, while expanding their global trust network to better distinguish genuine users from bots. The companies collectively processed over 4.1 billion identity checks in 2024 and serve most of the top U.S. banks, positioning them to capitalize on the identity verification market projected to reach $116 billion by 2027. The acquisition underscores growing demand for secure, scalable identity infrastructure in an era of increasingly sophisticated digital fraud.