SAN FRANCISCO — (Marketwired – July 19, 2016) — Today, Sift Science announced a $30M Series C funding round led by Insight Venture Partners. Prior investors Union Square Ventures and Spark Capital also participated, bringing the company’s total funding to $54M. The company also launched a new set of products designed to detect and mitigate additional types of fraud and abuse.
Sift Science helps companies make decisions in real time about who they can trust online. Their machine learning software automatically learns and detects fraudulent behavioral patterns, alerting businesses before they or their customers are defrauded. When businesses have a clear picture of which customers are legitimate and which are trying to commit fraud, they can build better online experiences that customers love, while saving millions of dollars in lost revenue. Sift Science’s customers include industry leaders in retail, financial services, travel and ticketing, online marketplaces, on-demand services and more, including Twitter, Airbnb, Yelp, Twilio, Jet.com, Indeed, Zillow and Wayfair. Sift Science helps customers deny over 9 million fraudulent charges each year, saving them more than $1 billion. Sift Science saves merchants an average of $140 per fraudulent transaction prevented.
While it will continue to lead the industry in payment fraud prevention, Sift Science’s new products will target the following areas:
- Account abuse: Keeping bad actors with malicious intentions from creating fake accounts
- Content abuse: Preventing scammers and spammers from posting fraudulent listings, messages, and other content
- Promo abuse: Stopping users from manipulating online coupons and rewards programs
“Five years ago, fraud prevention was done by software that operated on static rules. They had to be manually adjusted, and they were easily beaten,” said Sift Science CEO and co-founder Jason Tan. “Machine learning and data technology allowed us to move beyond rules and focus on behaviors. Now we can address the core issue when it comes to fraud: Helping companies figure out who they can and can’t trust so they can build incredible customer experiences online. Our new products will extend those possibilities to a whole new set of companies.”
“Sift Science is actually realizing the huge possibilities of machine learning and big data, putting it to use instead of simply treating it like a buzzword,” said Jeff Lieberman, managing director of Insight Partners. “A recent LexisNexis study found that as of 2016, fraud losses were the equivalent of 1.47 percent of a retailer’s revenue. With consumers set to spend $1.7 trillion online this year, Sift Science has a huge opportunity to bring that number closer to zero.”
Sift Science plans to use the financing to expand sales, marketing, and engineering teams, deepen its product capabilities and expand their offering to new types of fraud.
About Sift Science
Sift Science is the leading provider of real-time machine learning fraud prevention for online businesses across the globe. Every day, thousands of websites and apps rely on Sift Science to eliminate fraud and abuse, streamline and automate fraud-prevention workflows and provide legitimate users with a seamless experience. Launched in 2011, Sift Science is headquartered in San Francisco, California. Visit us at https://siftscience.com and follow us on Twitter @SiftScience.