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Deduce Raises $9 Million to Combat AI-Generated Identity Fraud

Deduce Raises $9 Million to Combat AI-Generated Identity Fraud

In today’s interconnected digital world, the battle to protect sensitive personal data and prevent identity fraud has reached a critical point. Cybersecurity startup Deduce Inc. has just announced a significant milestone by securing $9 million in funding for its innovative generative AI identity fraud solution. This groundbreaking technology promises to revolutionize the way businesses safeguard their customers’ identities across various industries.

The Genesis of Deduce

Founded in 2019, Deduce Inc. has been on a mission to fortify businesses against unauthorized account access, data breaches, and identity fraud. Their solution harnesses the power of cutting-edge risk algorithms and behavioral analytics, creating a robust network of consumer identity data that acts as a real-time fortress against fraudulent activities. Notably, Deduce’s platform is also designed to thwart identity fraud perpetrated by artificial intelligence, a growing concern in the digital realm.

The Rise of Generative AI in Fraud

The advent of generative AI has brought about remarkable efficiencies across various sectors, including the ominous world of organized fraud. Platforms such as FraudGPT have paved the way for cybercriminals to employ AI in generating fake identities using stolen personal information. These malevolent actors can then authenticate these fabricated identities with the help of deep fake biometrics, creating deceptive online transaction histories.

To combat this new breed of fraud, Deduce argues that a solution must be able to scrutinize an identity graph that encompasses a substantial portion of the U.S. online population. This frequent monitoring is essential to identify AI-generated identities at the point of account creation and to uncover dormant “sleeper” identities already in the system.

How Deduce’s Solution Works

Deduce’s platform utilizes multi-contextual intelligence, drawing data from diverse sources in real-time. This data is then meticulously analyzed to identify distinct identity patterns and expose the digital forensic footprints left behind by AI-generated fraud. By recognizing subtle anomalies in what might otherwise appear to be typical user profiles, Deduce can flag these potentially fraudulent identities for further investigation.

Ari Jacoby, Deduce’s CEO, emphasized the urgency of their mission: “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. 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.”

Backing from Prominent Investors

Deduce’s latest funding round was led by Freestyle Capital Management LLC, with participation from Foundry Group LLC and True Ventures Management LLC. This Series B funding brings Deduce’s total funding to an impressive $27.3 million, as reported by CB Insights.


In conclusion, Deduce Inc.’s generative AI identity fraud solution represents a significant step forward in the ongoing battle against identity fraud, particularly in the era of AI-generated deception. With the backing of substantial investment and a powerful platform that employs multi-contextual intelligence, Deduce is well-positioned to help businesses safeguard their valuable data and protect their customers from the ever-evolving threats of the digital age. As technology continues to advance, it is reassuring to know that innovative solutions like Deduce are working tirelessly to ensure our online identities remain secure.


1. What is Deduce Inc.’s primary focus?

Deduce Inc. specializes in providing a generative AI identity fraud solution. Their primary focus is to help businesses prevent unauthorized account access, data leakage, and identity fraud by using cutting-edge technology and behavioral analytics.

2. How does Deduce identify AI-generated identity fraud?

Deduce identifies AI-generated identity fraud by leveraging multi-contextual intelligence. They gather real-time data from various sources, analyze it for identity patterns, and flag any digital forensic footprints left behind by AI-generated fraud. This allows them to detect subtle anomalies in user profiles that may indicate fraudulent activity.

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