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IIFL Fintech Fund backs fraud detection firm TrustCheckr
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Fraud analytics solution provider TrustCheckr on Thursday said it has secured $1 million (around Rs 7 crore) from IIFL Fintech Fund.

The Bengaluru-based startup plans to use the fresh proceeds to scale its usage across banks, non-banking financial companies, fintechs, payment companies and bureaus in India.

It also aims to deploy the fundraise to enhance existing social scoring and social fraud detection capabilities.

Founded in 2017 by IIM Lucknow alumnus Adhip Ramesh and University of Liverpool alumnus Shivraj Harsha, TrustCheckr is a fraud analytics solution provider that enables businesses to identify fraud, fake or bot profiles using image processing and artificial intelligence. 

Its custom algorithm uses the capabilities of artificial intelligence, image processing and machine learning to come up with a ‘trust score’ based on certain factors of a person’s profile, such as age, gender, interests and income range. 

“Right from the beginning, we aspired to challenge the existing normative bureau centric framework of fraud prevention as it fails to capture digital frauds of different mediums. 

However, when TrustCheckr fraud and the social score is mapped against the corresponding credit score of a bureau; combined along with the Aadhar data, it can offer a fraud prevention framework that cannot be bypassed easily. Our data is complimentary to the prevailing system," said Harsha. 

The startup claims to have already completed more than 10 million TrustChecks. 

In 2018, the startup raised $100,000 (around Rs 65 lakh) from a city-based conglomerate and two high net-worth individuals.

“We have been using TrustCheckr in our digital lending business and the solution has aided us in identifying digital frauds. In today’s era where technology is going to be the driver for financial services- mitigating fraud will take center stage," said Mehekka Oberoi, Fund Manager IIFL Fintech Fund.

IIFL Group launched IIFL Fintech Fund in August 2021, with commitments from two of its group companies-IIFL Finance and IIFL Securities. The fund already has made five investments - Leegality, FinBox, Trendlyne and DataSutram, Finarkein Analytics.

Last year in December, IIFL Group said that the company is planning to invest Rs 300 crore through its IIFL Fintech Fund in early-stage fintech startups over the next two years. 

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