Socure has announced its acquisition of Effectiv, a dynamic real-time risk decisioning firm, for a total of $136m.
This acquisition, set to finalize in November, marks a significant step in combining top-tier identity verification technologies with advanced AI orchestration, uniquely positioning Socure ahead of its competition in the fraud prevention landscape.
Effectiv, renowned for its developer-friendly platform, facilitates the seamless integration of various risk solutions, including identity and payment fraud controls, KYB (Know Your Business), and AML (Anti-Money Laundering) measures. This capability allows for real-time, critical decision-making across some of the most challenging risk domains such as identity theft and real-time payment fraud.
This strategic move will solidify Socure’s esteemed position within the $200bn enterprise fraud sector, which spans payments fraud, credit underwriting, and AML transaction monitoring. Socure boasts a robust customer base, having verified over 2.26bn identities in the past year, serving more than 2,700 clients.
Effectiv was founded in early 2021 by a group of FinTech veterans—Ravi Sandepudi, Ritesh Arora, Jonathan Doering, and Anupam Tarsauliya—who have extensive experience creating risk platforms for major players like PayPal, Google, and Walmart. The acquisition not only brings Effectiv’s innovative technology under Socure’s umbrella but also sees the entire Effectiv team join Socure, enhancing its platform product, engineering, and data science capabilities.
The integration of Socure and Effectiv is expected to unlock new market opportunities, deepen enterprise partnerships, and extend services to the midmarket. Effectiv’s early success in penetrating banks and FinTechs is likely to boost Socure’s rapid commercial adoption across its vast network of over 1,000 banks and 500+ FinTech partnerships.
The combined strength of Socure and Effectiv will lead to a unified platform that covers the entire customer journey—enhancing user experience at every touchpoint through advanced AI and a comprehensive view of identity. This unified approach aims to streamline processes from onboarding to regulatory compliance, making it a game-changer in the realm of digital identity verification.
Socure founder and CEO Johnny Ayers said, “As we attained identity certainty to stop attacks and ensure trust at new account opening, many large partners asked us ‘why not apply the same view of identity to login, payments, authentication, account recovery and regulatory reporting?’ With a world-class platform from Effectiv and analytics that allows for adaptive and progressive risk decisioning, we will be able to help our partners with a single view of identity to drive instant risk and trust decisions anytime, anywhere.”
Jim Mortensen, strategic advisor, fraud & AML at Datos Insights, highlighted the impact of the acquisition, noting, “Socure’s acquisition of Effectiv expands the company’s capabilities beyond onboarding and identity verification to include full risk process optimization. This acquisition allows Socure to offer a more comprehensive solution that enables organizations to consolidate their technology stacks and develop a more integrated approach to fraud prevention.”
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