Fraud Detection Company Inscribe Raises $10.5 Million In Series A
Fraud detection company Inscribe, cofounded by Irish twin brothers and Under 30 honorees Ronan and Conor Burke, announced today that it has raised $10.5 million in a Series A funding round. The round was co-led by Uncork Capital, Foundry Group, and Crosslink Capital, with participation from Y Combinator.
Inscribe is a fraud detection company that detects fraud in costumer supplied information, such as documents that a customer gives to business to prove things about themselves when they are applying about something like mortgage or online insurance.
“Moving these processes online opens up the flood gates for frauds,” Ronan Burke, who serves as the company’s CEO, says. “These systems become even more vulnerable as these businesses strive for automated decisioning so giving customers answers in a couple of hours or minutes, it’s good customer experience but it brings about a lot of fraud.”
Burke says that the issues they are dealing with usually involve application fraud, such as individuals inflating their revenue or income for their business to try to get better terms or a larger loan. Other examples include international fraudsters pretending to live in the U.S. by tampering an address on a utility bill in order to open a merchant account or account on crypto exchange.
One of Ronan Burke’s favorite example of fraudsters they’ve caught is a man from Florida who had received nearly $4 million in federal loans, used it to buy a Lamborghini among other things, and was eventually charged for bank fraud. In July of last year, his story made it to the New York Times.
At the moment, Inscribe is focused on document fraud, following three steps to confirm the veracity of a certain document or point out its falsehoods.
The first one is document forensics, where the company examines every detail of the document, including font structures and pixels in the document to uncover evidence of fraud. This also includes suspicious behavior in the metadata and the non-visual evidence in the file. The second one is the company’s data network, as throughout their previous work they have found strong patterns for fraud from prolific fraudsters and organized fraud rings. The final thing we do is validation and verification of the information on the document, where Inscribe checks things like names, dates, addresses, income, to make sure they match with what the financial institutions have on file.
The company’s revenue model is such that they charge on a per document basis. Since launching in March of last year, the company had grown 12x YoY, and clients include fintechs like Amount and BlueVine.
Ronan and Conor, native Dubliners, cofounded Inscribe in 2017 (Conor serves as the CTO). They participated with the idea in Y Combinator in the summer class of 2018. The company raised a $3.2 million seed round and went live in the beginning of 2020.
Jeff Clavier, a managing partner at Uncork Capital, who co-led the round says that they were attracted by Inscribe because of the magnitude of the problem, the technology they’ve introduced, and the founding team.
“Everywhere you look people are finding ways to cheat by forging documents and faking their income or financials and thats true for individuals, companies, businesses of all sizes,” Clavier says. “The naked eye can’t see it, you need a machine, and Inscribe has the technology. What the company has done so far is just a drop in the bucket.”