Amsterdam-based ThreatFabric, a cyber fraud startup, announced on Thursday, May 11, that it has raised €11.5M in a Seed round of funding co-led by ABN AMRO Ventures, Motive Ventures, with participation from 10xFounders and 14Peaks capital.

This capital infusion will help ThreatFabric expand its technical capabilities, support its growth and accelerate its international expansion.

A large part of this investment will be used to extend two separate protection layers of ThreatFabric’s Fraud Risk Suite — behaviour-based location intelligence and behavioral biometrics by using advanced AI models that forecast potential fraudsters’ online footprint inside payment journeys.

It consists of the fraudster’s footprint with advanced AI models that include continuous threat modelling of attack paths inside online signup and payment journeys.

What does ThreatFabric solve?

The battle against online fraud has intensified in recent years, as continuous data breaches and AI-driven tools have empowered fraudsters.

A report from UK Finance sheds light on the alarming surge in online fraud cases. It emphasises that fraud remains a significant threat to individuals and businesses in the UK.

To address this escalating issue, ThreatFabric has developed advanced software to help banks and financial institutions protect their end-users from fraud and malware using various protection layers, such as on-device malware detection and behavioral analytics.

ThreatFabric: Combating complex online fraud

ThreatFabric provides a software-as-a-service (SaaS) solution to the financial services sector, enabling banks and financial institutions to gain comprehensive fraud visibility across both web and mobile channels.

Founded by Han Sahin and Yorick Koster, the company focused on extending its Fraud Risk Suite product, co-developed with ABN AMRO Bank, to create ThreatFabric.

The company has grown rapidly since its inception in 2015 and now has a global presence with over 40 employees.

Han Sahin, CEO at ThreatFabric, says, “The ever-changing online fraud threat landscape can be proactively protected by including AI-driven threat modelling in behavioral-based defence layers. Fraudsters also have a strong need which is strongly reflected in their digital footprint.”

“This Seed Round with investment capital from ABN AMRO Ventures, Motive Ventures, and participation from 10xFounders and 14Peaks capital will be used for further expansion and to extend our Fraud Risk Suite platform focused on new proactive fraud controls,” says Sahin.

The investors

ABN AMRO Ventures is ABN AMRO’s corporate venture fund. It invests in technology companies that specialise in digital financial products, services, and infrastructure.

With 150M of assets under management, the fund has invested in over 20 companies including Quantexa, DFNS, Doconomy, Oper, Solaris, and Upvest. Previous investments include BehavioSec (exit 2022), Tink (exit 2021), OpenInvest (exit 2021), and Trifacta (exit 2022).

Hugo Bongers, Managing Director at ABN AMRO Ventures says, “The fraud issue is a large and complex problem, which is only expected to get bigger in the future, as technologies like AI further develop. As a long-standing partner of ThreatFabric, ABN AMRO Bank has seen ThreatFabric’s profound understanding of the fraud issue and the high-quality solution the company offers.”

Motive Ventures is the early-stage investment arm of Motive Partners, focused on pre-seed through to Series A financial technology investments in North America and Europe.

Motive Partners is a specialist investment firm focusing on venture, growth equity, and buyout investments in technology-enabled financial and business services companies.

Michael Hock, Partner & Head of Portfolio Management at Motive Ventures says, “Best-in-class fraud detection technology is required to understand the ever-changing landscape of fraud vectors and threat actors in the digital financial services sector. ThreatFabric’s team impressed us with their deep domain expertise and sticky product suite. This detects new and imminent threats tailored to digital banks and payments services.