Capital One acquires digital id and fraud alert startup Confyrm – TechCrunch

Fundings and Exits

Capital One has acquired the San Francisco-based digital id and fraud alert startup Confyrm, the corporate introduced by a weblog put up on Thursday. The deal will convey Confyrm’s know-how to the financial institution with the intention to assist velocity its improvement and implementation of shopper id providers at scale.

CEO Andrew Nash based Confyrm in 2013, together with Dale Olds and Emma Lindley, with a imaginative and prescient of restoring belief in digital identities, he says.

“We acknowledged that regardless of an growing reliance on digital identities, shopper belief in these identities continued to erode,” explains Nash. “We needed to make an actual distinction to decreasing on-line fraud and to make the web a safer place for everybody engaged in it, however critically to do that with out abusing buyer privateness and storing private knowledge.”

The corporate created a system to supply early notifications of suspicious account exercise, with the intention to mitigate the impression of fraud or account theft for id suppliers and shoppers alike. The system additionally makes use of privacy-enhancing mechanisms to guard the identities of the person shoppers and the occasion publishers.

For instance, if a monetary service was processing a password reset request however detected that the patron’s e-mail account had been taken over by a fraudster, it might cease the assault on the patron’s account instantly. In the meantime, the patron could possibly be alerted on the similar time to take extra steps to safe their account.

Earlier than beginning Confyrm, Nash had beforehand served as Director of Identification Providers at Google, one of many largest suppliers of shopper id providers on the earth, with over a billion shopper and enterprise accounts. He additionally served as Senior Director of Client Identification at PayPal, managing over 350 million identities validated to be used within the monetary providers house, and was Director of Applied sciences at RSA Safety.

So for Capital One, the acquisition of Confyrm isn’t simply concerning the know-how itself – it’s about bringing Nash on board.

Following the deal’s shut, Nash will turn into Managing Vice President of Client Identification Providers.

He says working at Capital One will assist the staff attain extra shoppers than a startup might by itself, permitting them to “massively enhance the set of shoppers that we might help to guard.”

It’s unclear how far alongside Confyrm was on truly bringing its product to shoppers – its web site touted a couple of pilot packages a number of years in the past, however hadn’t been up to date in a while. A number of the web site’s textual content remains to be “Lorem Ipsum” filler textual content, in truth, and there’s been little protection by press within the years since its founding. The corporate hadn’t talked a lot about its pilot companions, however the checklist was reported to incorporate an web e-mail supplier, cell operator, monetary providers firm, and a number of e-commerce websites. Seemingly, Capital One was the early companion, which is what later led to this acquisition.

On the Nationwide Institute of Requirements and Know-how (NIST) web site, one in all Confyrm’s pilot packages was listed, noting pilot companions included InCommon, Google, AOL, LinkedIn, and Microsoft. (AOL merged with Yahoo to kind Oath, which additionally now owns TechCrunch.)

Deal phrases relating to the Capital One acquisition weren’t being shared, however Confyrm had raised $1.2 million, based on Crunchbase, which attributes the funding to a grant. (One other supply states the grant was for $2.four million, nevertheless).

Buying an early stage startup isn’t uncommon for Capital One, which frequently picks up younger corporations to gas its firm with contemporary expertise and distinctive IP. Over the previous a number of years, it’s acquired cell financial savings startup BankOns, native enterprise listing Bundle, budgeting app Stage Cash, design and improvement agency Monsoon, design agency Adaptive Path, value tracker Paribus (which launched at TechCrunch Disrupt), and safe container orchestration platform Essential Stack. 

There’s a video of Nash explaining how Confyrm works, right here.

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