Deduce: $9 Million Raised To Prevent AI-Generated Identity Fraud

By Dan Anderson • Sep 18, 2023

Deduce – the only patented technology platform designed for preventing AI-generated identity fraud – recently announced $9 million in funding led by Freestyle Capital, with additional investment by Foundry and True Ventures. The funding round will launch Deduce’s GenAI Identity fraud solution out of stealth and help the company scale to prevent large-scale SuperSynthetic identity fraud across multiple verticals, including the financial service industry, fintech, and e-commerce.

The rise of Generative AI accelerated efficiency across industries, including organized fraud, with the introduction of platforms such as FraudGPT. Driven by these new technologies, fraudsters can utilize AI and stolen PII to create batches of credible digital identities, authenticate those identities with deep fake biometrics, and create online transactional histories. Utilizing this technology, cybercriminals can leverage automation to create a virtual army of SuperSynthetic identities that are indistinguishable from legitimate identities.

Detecting AI-generated identities requires a massive identity graph that sees the majority of the online U.S. population several times each week. And Deduce will utilize multi-contextual activity-backed intelligence to help organizations identify Super Synthetic identities during account opening and “sleeper” identities already onboarded.

Deduce utilizes multi-contextual intelligence for gathering and analyzing extensive real-time data from diverse sources to recognize identity patterns and flag the digital forensics patterns created by AI-generated fraud. By utilizing these patterns, Deduce can identify unusual behavior in otherwise normal-looking identities and flag them for review.

The Deduce AI-generated identity fraud solution is now available through industry-leading partners, including Experian, ForgeRock, Auth0, and Ping Identity.


“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.”

– Ari Jacoby, CEO of Deduce

“We know the rapid adoption of generative AI will enable bad actors to use new technologies to perpetrate fraud. Every company that cares about customer data and identity will need a solution like Deduce provides immediately. Deduce has built a proprietary solution to tackle this new type of threat, so our decision to invest in scaling that solution was simple.”

– Jenny Lefcourt, Partner at Freestyle Capital