Unit21 raises $45m to strengthen fraud detection with Fintech Fraud DAO

Unit21, a risk and compliance infrastructure firm, has revealed raising $45 million in a Series C funding round in 2022, steered by Tiger Global and South Park Commons.

This investment has buttressed the burgeoning Fintech Fraud DAO consortium, now overseeing more than 10% of adult consumer transactions in the U.S. Amid a sharp rise in financial fraud, from $1.9 billion in 2019 to $8.8 billion in 2022 according to the Federal Trade Commission, Unit21 and its partners are pioneering more intelligent, proactive fraud prevention strategies.

Fraud prevention ideally demands cooperation among fraud and compliance professionals across the industry. Unit21 is crafting risk and compliance infrastructure that arms its partners with the capabilities to detect, halt, and upgrade their systems rapidly and effectively to battle fraud and money laundering. The fresh funding is directed towards buttressing the company’s collaborative strategy to confront these escalating threats.

In the previous fall, Unit21 initiated the Fintech Fraud DAO, allowing fintechs to aggregate and share data to detect fraud in its infancy. The consortium, which counts Drivewealth, Uphold and Gusto among its members, now supervises over 10% of adult consumer transactions in the U.S.

Unit21’s infrastructure saw brisk adoption in 2022, aiding clients to supervise a total of 4.8 billion transactions, or $693 billion in value, marking a 5.2-fold increase from the preceding year. The company also dealt with 16,000 suspicious activity reports representing $8.9 billion in value, successfully deflecting fraud attempts worth over $764 million.

Trisha Kothari — Unit21 Co-founder and CEO said: “Our mission is to champion fraud prevention over detection. The evolution of fraud calls for an evolution in our approach and must be achieved through collaboration.

“With the unwavering support of our partners and customers, and the backing of our investors, we’re eager to spearhead the fight against fraud and money laundering, striving to make the financial world a safer place for all through our shared commitment to the cause.”