Effectiv, a real-time fraud and risk management platform for financial institutions and fintech companies, has raised an additional $4.5 million in seed funding, bringing its total raise to more than $9 million.

The funding round which was led by Better Tomorrow Ventures, also saw participation from Accel and angel investors.

Effectiv provides AI-driven solutions such as payment fraud detection, customer and business onboarding verification, and compliance management.

Combating AI-generated fraud

With a clear vision to combat the escalating challenge of AI-generated fraud, such as deep-fakes and voice synthesizing, the company has decided to utilise the funds to develop innovative models tailored to counter these emerging threats. Furthermore, it plans to expand its offering to other geographies in the future.

“We recognise that the financial world is rapidly digitising, changing how consumers and organisations interact. At the same time, advanced generative AI technologies are attacking organisations at a scale we have never seen. It’s a critical problem, and one that our team is committed to fighting,” said Ravi Sandepudi, CEO and co-founder of Effectiv.

According to the platform, it has helped organisations process more than $27 billion in financial products and is currently processing more than $100 million daily. Sandepudi attributes the company’s success to its technology, the team, and its growing customer base, which includes BHG Money, Cardless, Pomelo, USALLIANCE Financial, Peapack-Gladstone Bank, and more. The company claims to have crossed a revenue threshold of $1 million a year after its launch.

“It is proving advanced technology that can withstand one of the biggest challenges we face today in the financial industry. They are experts not only in the fraud space but also in machine learning and AI. This combination makes them the most formidable team in the industry to tackle this problem,” said Sheel Mohnot, Co-founder of Better Tomorrow Ventures.