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Moonsense lands $4.2 million in seed funding

Fraud prevention innovator Moonsense has announced they have raised $4.2 million in seed funding and the general availability of its user behavioral and network intelligence solution to help organizations future-proof their fraud detection and prevention.

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Moonsense’s new approach allows companies to better customize fraud management based on their unique business and is actively being used across several security and risk-sensitive industries including financial services, fintech, online merchants, online gambling, among others.

E-commerce losses to online payment fraud have significantly increased over the past year and were estimated to be at USD 41 billion globally, in 2022. The figure is expected to grow further to USD 48 billion in 2023 and keep increasing by 131% from 2022 to 2027. Even with escalating fraud KPIs and revenue losses in recent years, companies have generally maintained their fraud management expenses at a constant proportion of total revenue. Organizations need to do more with less, optimizing their fraud prevention strategies without increasing their financial burden. This is where Moonsense steps in. Moonsense offers these risk-focused organizations the means to identify and combat even the most advanced fraud schemes, such as account opening fraud using synthetic IDs and account takeover attacks (ATO).

“Our vision is to deliver a next-level data management and AI/ML solution for personalized fraud detection,” said Andrei Savu, Moonsense CEO and Co-founder. “When humans interact with a site, they establish predictable patterns of behavior and this is what is referred to as digital body language. How quickly people enter a password, how hard they press on a touch screen, the way they swipe - these are all data points for validating legitimate users versus bots and bad actors. With Moonsense, businesses can more accurately detect fraudulent behavior this way without creating additional user friction. That’s the key.”

“Moonsense has been pivotal in our identity verification and risk scoring analysis to help us tailor bot and bad actor prevention to the needs of our business,” said Jordan Shamir, Co-Founder of Yofi. “Moonsense eliminates the heavy lifting while still providing us with a high degree of control over our bot and bad actor detection triggers and response rules. Our reaction time is faster with no negative impact on the user experience, which has allowed us to identify millions of bots and help our partners prioritize their loyal customers.”

Moonsense also announced that it has raised $4.2M in seed funding to fuel operations. Seed funding was co-led by XYZ Ventures and Race Capital with participation from TheGP, Foothill Ventures, and individual investors including Sekhar Sarukkai, John Lilly and Josh Wills.

“We believe user behavioral analytics is the future for fraud prevention,” said Ross Fubini, founder and Managing Partner at XYZ Venture Capital. “We are partnering with Moonsense because they are pushing the industry forward. Andrei and his team deliver on the need for personalization for organizations truly committed to fighting new account fraud, account takeovers, and sophisticated bots.”

With the general availability of the Moonsense platform and the company’s public launch, Moonsense meets an identified gap in the cybersecurity marketplace, providing highly contextual user behavioral intelligence and network intelligence data built for fraud prevention and risk management teams and data scientists.

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