Resistant AI Raises $11 Million for AI Security Solutions

Resistant AI has raised more funding for its artificial intelligence (AI) and machine learning (ML) security solutions.

The company has added $11 million from venture capital (VC) firm Notion Capital to its Series A funding, bringing the total to $27.6 million, Resistant AI said in a Tuesday (June 27) press release.

It will use the new funding to continue expanding its product, team and geographic presence to help FinTechs and financial institutions protect their onboarding and transaction systems from the growing number of automated, AI-driven malicious attacks, according to the release.

“The old methods of fighting financial crime cannot keep up and Resistant AI’s unique application of machine learning successfully tackles these ever-changing threats,” Resistant AI CEO and founder Martin Rehak said in the release. “With this investment from Notion Capital we are able to build on this success and bring our solution to more institutions in the face of these increasingly pernicious threats.”

Resistant AI’s solutions look for anomalies in documents, transactions and behaviors, according to the press release.

The solutions augment financial service companies’ existing risk tech stacks — and double the number of threats detected — by analyzing digital documents for signs of forgery or fraud, adding alert prioritization and new risk discovery to existing rules-based anti-money laundering (AML) transaction monitoring systems, and taking in outputs from data sources across an organization, the release said.

“Synthetic identity fraud has been named the fastest growing financial crime in the U.S., with $6 billion in total losses to the banking sector in 2021 alone, and the Resistant AI product is the only comprehensive solution out there that moves as fast as the fraudsters do,” Notion Capital Principal Kamil Mieczakowski said in the release. “We’re excited to be working with them so they can meet the growing demand for their solution.”

PYMNTS research has found that AI-based fraud prevention systems have proven to be some of the most effective at stopping identity fraud, as they can pinpoint minute inconsistencies in stolen or manufactured identities that would pass unnoticed by human analysts.

Seventy-five percent of acquiring banks are currently leveraging AI to fight fraud, including identity fraud, according to “Fraud Takes On A New Identity,” a PYMNTS and DataVisor collaboration.