Arkose Labs, a San Francisco, CA-based provider of online fraud prevention technology combining user risk assessment and sophisticated enforcement challenges, received a strategic investment from PayPal (NASDAQ: PYPL).
The amount of the deal was not disclosed.
The company plans to expand its product roadmap to include additional fraud prevention and digital identity capabilities.
Led by Kevin Gosschalk, CEO, Arkose Labs is solving online fraud problems for major global businesses in sectors including online communities and marketplaces, travel, banking, social media, ticketing and gaming via a bilateral approach that combines global telemetry with a patent pending enforcement challenge that stops fraud without false positives and without friction for users. The company’s technology stops abuse before it occurs without adding friction to the user experience.
Current customers include Electronic Arts, Singapore Airlines, Roblox, Kik and more.
The company, which also has offices in Brisbane, Australia, closed a $6m Series A round led by US Venture Partners some weeks ago. This funding expansion brings total outside investment to $14m. Considering a previous $1.5m seed round, PayPal’s investment could amount approx. $6.5m.