COVID-19 has surged the usage of digital services. With the rise of this adoption, there has been a recorded 67% rise in identity fraud as more consumers bank and shop online and use online services to maintain social distancing. However, Ari Jacoby (Co-founder, and CEO of Deduce) confirmed that by harnessing the power of data and artificial intelligence, these bad actors can be eliminated. Ari with his team of experts at Deduce are harnessing the network effects of data for the good.
Ari was formerly the co-founder & CEO of Voicestar, Solve Media, and Circulate. He holds expertise in building large data networks, identity, risk, cybersecurity, CXO-level sales, business development, corporate development, corporate strategy, licensing, International strategic alliances, fundraising, M&A, and product development. Ari was also named the EY Entrepreneur of the Year in 2014. Being a victim of identity fraud, he has first-hand experience of how an invasion of privacy can lead to both a financial and emotional toll. “My commitment to preventing bad actors from getting away with other people’s money gets me up at 5 am most mornings and underpins our mission here at Deduce,” said Ari. His personal principles align with Deduce’s value where privacy is prioritized, the technology is accessible to innovators and together the team is motivated to make a difference in the world.
The story of Deduce began in the Ad-tech world where the founders battled bots and grew increasingly frustrated with legacy products that neither provided useful attack data nor made a concerted approach to security possible. This led to building a platform that harnessed the network effects of data for good. The growing Deduce organization comprises a diverse team of 14 passionate people who are motivated to turn off the funding for bad actors. As the founder and CEO Ari has built and run three previous Identity Graph-based businesses resulting in successful exits; twice to public companies. Other key team members include: Andy Pruss, VP Finance; Andy Sheldon, VP Marketing; Adish Kasi, VP Sales and Robert Panasiuk, CTO
For over 16 years the leadership team has built several successful companies. They have built a deep friendship that goes beyond business and is a rare sight in the business world. This also enables the team to bridge the gap between each other’s roles and strategic inputs to look out for and after each other as well as Deduce’s shareholders and clients. Their deep friendship has also resulted in nurturing a corporate culture that is transparent and open. The team members can openly share their ideas and no one is afraid to challenge the conventional wisdom. Ari adds, “I have learned from experience to hire smart people and to get out of their way. We function collaboratively and with an open communication channel where everyone feels empowered to help make the right decisions.”
Deduce offers the world’s first, real-time online identity fraud prevention technology, safeguarding over 400 million online consumer profiles called the Deduce Identity Network. It is a secure, privacy-compliant data network incorporating a consortium of over 150,000 participating websites that captures over 1.2 B daily online activities in the United States. This creates a real-time, AI-driven identity graph that tells a company if the person logging in or signing up is whom they claim to be.
Furthermore, companies can also utilize Deduce Identity data to offer their customers a frictionless log-in or sign-up process. Powered by the Deduce Identity Network, the company delivers two seamlessly integrated products to stop identity fraud and create a Trusted User Experience.
Deduce Identity data offers their customers a frictionless log-in or sign-up process. For instance, Deduce tells the company that this new subscriber is legitimate, the company can then fast track their onboarding to the service rather than forcing the “verify your email” step of account creation. This represents a win-win for the company and the customers they serve.
Deduce tools are exceptional in comparison to other competitors in the market. While other typical fraud tools focus on identifying bots and automated traffic Deduce leverages dynamic data. Focusing on identifying bots and automated traffic cannot reveal the identity of the users. By depending on dynamic data like networks, IP addresses, geography, activities and devices used to log in to identify and prevent suspicious login activity, in a fraction of a second.
By combining the volume of data generated by the Deduce Identity Network with the real-time nature of Deduce algorithms and AI, creates the identity graph that businesses can use to combat bad actors and cut off their funding source. Both the products of Deduce i.e. Deduce Identity Insights and Deduce Customer Alerts can either replace or augment other fraud/risk tools by leveraging the Deduce Identity Network and layering on powerful algorithms to crunch real-time data and spot fraudulent activity before bad actors wreak havoc on a business and its users. For example, Deduce Insights can be integrated into existing authentication platforms such as Auth0 to inform MFA challenges and reduce the number of false positive challenges to legitimate users, a common source of consumer frustration that can ultimately lead to churn. This cutting-edge solution has earned several awards and accolades, let alone in 2021 Deduce has been a winner of 11 awards among which is “Cyber OSPAs-Outstanding New Cyber Security Product”, “Stratus Awards-Artificial Intelligence”, and “Fortress Cyber Security Award-Software & Applications-Authentication & Identity”.
Deduce offerings cover beyond prevention of account take over or new account creation fraud. The deployment of Deduce of data and AI delivers a new horizon for frictionless user experience built on identity management. “We achieve this frictionless experience by leveraging our game-changing Identity intelligence and the trust signals therein, providing secure password-less authentication that’s the account login equivalent of TSA PreCheck and Global Entry This results in a much faster, easier, and more intuitive process than competitors,” explained Ari.
Deduce has pioneered the culture shift from siloed data to data sharing in the fraud prevention and fraud risk industry. Ari and his team are striving to make Identity Intelligence a share data currency. The aim is to stamp out account takeover fraud forever, and Deduce enables every company to contribute to achieving this collective protection.
Deduce has experienced 500% user growth over the past year and in the coming year the team is motivated to grow further 1900%. However, the company’s most important and impactful achievement this year has been to democratize access to big data so businesses can make intelligent real-time decisions to prevent identity fraud and account compromise. “Every bad actor we shut down today helps to shut down the financial crimes economy both today and longer-term,” concludes Ari.
Key takeaway: “The most valuable lesson I’ve taken from my career so far is that business is about people.”
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