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Deduce Raises $9M to Tackle AI-Generated Identity Fraud

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Cybersecurity Company Leverages Activity-Backed Intelligence to Thwart AI-Generated Identity Fraud

NEW YORK, September 13, 2023-- Deduce, the only patented technology platform designed to prevent AI-generated identity fraud, today announced $9M in funding led by Freestyle Capital, with additional investment by Foundry and True Ventures. The funding will launch Deduce’s GenAI Identity fraud solution out of stealth and help the company scale to prevent large-scale SuperSynthetic™ identity fraud across multiple verticals, including the financial service industry, fintech, and e-commerce.

The rise of Generative AI has accelerated efficiency across industries, including organized fraud, with the introduction of platforms such as FraudGPT. Bolstered by these new technologies, fraudsters can leverage AI and stolen PII to create batches of credible digital identities, authenticate those identities with deep fake biometrics, and create online transactional histories. Utilizing this technology, cybercriminals can leverage automation to create a virtual army of SuperSynthetic identities that are indistinguishable from legitimate identities.

“We stand at a critical juncture where the security and privacy of our most important data is being threatened at an unprecedented level. Legacy fraud prevention methods will no longer be able to protect us from AI-generated fraud,” noted Ari Jacoby, CEO of Deduce. “Leveraging this new investment, we can take our solution to the market with the speed necessary to prevent this type of fraud from overtaking the organizations we serve.”

Detecting AI-generated identities requires a massive identity graph that sees the vast majority of the online U.S. population several times each week. Deduce will leverage multi-contextual activity-backed intelligence to help organizations identify Super Synthetic identities during account opening and “sleeper” identities already onboarded.

“We know the rapid adoption of generative AI will enable bad actors to use new technologies to perpetrate fraud,” said Jenny Lefcourt, Partner at Freestyle Capital. “Every company that cares about customer data and identity will need a solution like Deduce provides immediately. Deduce has built a proprietary solution to tackle this new type of threat, so our decision to invest in scaling that solution was simple.”

Deduce utilizes multi-contextual intelligence to gather and analyze extensive real-time data from diverse sources to recognize identity patterns and flag the digital forensics patterns created by AI-generated fraud. By leveraging these patterns, Deduce can identify unusual behavior in otherwise normal-looking identities and flag them for review.

The Deduce AI-generated identity fraud solution is currently available through industry-leading partners, including Experian, ForgeRock, Auth0, and Ping Identity. To learn more about Deduce and AI-generated fraud prevention, visit

About Deduce

Deduce detects SuperSynthetic customers–AI-generated identities so realistic they fool legacy fraud solutions. Deduce unmasks SuperSynthetic identities using patented technology and the largest purpose-built, activity-backed identity graph, with 840M US-based email identities, generating 1.5B+ authenticated online events per day across 150,000+ websites and apps. Deduce Identity Graph data drives real-time multi-contextual digital forensics to protect new account opening workflows and expose “Sleeper” SuperSynthetics already in customer databases.

Recent Deduce awards include the #1 Security spot in Fast Company’s World’s 50 Most Innovative Companies 2022 and the 2022 CISO Choice Award for Fraud Prevention. Learn more about the SuperSynthetic threat and Deduce's solution at

Ashley Mann, Pinegrove PR

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