Socure Inc., an identity verification service provider whose functional solutions are used by companies such as Chime Financial Inc. and Robinhood Markets Inc., has agreed to acquire Effectiv, a fraud prevention platform.
The cost of the mentioned deal will be $136 million in cash and equity.
Effectiv helps companies coordinate fraud prevention tools from multiple providers.
It is worth noting that the problem of cybersecurity continues to be relevant. Scammers operating in the virtual space leverage advanced technologies, which is why their methodology becomes more sophisticated. In this context, it is worth noting that one of the tools for countering the relevant threats in the digital environment is the personal awareness of users. For example, a query in an Internet search engine, such as how to know if my camera is hacked, will allow anyone to get information about signs of unauthorized access to the device.
By acquiring Effectiv, Socure aims to become a one-stop fraud prevention shop for enterprise customers. The implementation of the relevant deal will add new features to the company’s product suite. In this case, among other things, functional solutions such as transaction monitoring in the framework of anti-money laundering practices and tools of the Know Your Business category are meant. The platform allows users to perform tasks such as verifying the authenticity of a person’s identity when contacting a help center or checking whether attempts to open a new account are fraudulent.
