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Have you ever wondered how fraud prevention firms protect businesses from malicious activities?

Arkose Labs, the world’s leading online fraud and abuse prevention solutions provider, has just raised $70 million. In this article, we discuss the unique business model behind Arkose Labs – and why it is so successful in protecting companies from fraud.

You will discover a comprehensive way to protect your business from malicious threats.

Introduction to Arkose Labs

Arkose Labs is a fraud prevention firm that helps companies protect their customers and users from fraud. Founded in 2015, the company has recently announced a $70M Series C funding round. This funding increase demonstrates industry confidence in the company’s business model and its ability to help businesses reduce losses from cyberattacks, payment fraud, account takeover, and other malicious behavior.

Arkose Labs aims to detect emerging threats and malicious activities through advanced data visibility, machine learning analytics, risk scoring technology, and real-time enforcement capabilities. The company works with enterprises across many industries, including retail banking, payment processors, e-commerce platforms and digital marketplaces. In addition to helping protect against fraudulent activities, the company’s services also aid in providing user experience enhancements related to identity verification processes.

By leveraging a powerful technology backbone with human analysis when needed and optimizing client experience during interaction with user-facing digital assets (mobile devices), boxes of workstations or public/private clouds – Arkose Labs offers an enterprise-grade solution tailored to specific needs of clients. Their services are designed for ultimate scale and extensibility for custom applications on an enterprise level. This means less time spent for customization tasks and more cost efficiency for businesses that prefer agility in reaction to cyber security threats.

What is Arkose Labs’ Business Model?

Arkose Labs is a fraud prevention firm specializing in providing its clients with real-time analytics and actionable insights to detect, stop, and mitigate account takeover, fraudulent payments, account creation abuse, and other forms of fraud. Founded in 2017 by CEO Kevin Gosschalk and Randy Watchmaker, the company employs over 100 people across six countries.

Arkose Labs’ business model is predicated on analyzing big data sets from everyday users to identify patterns of fraudulent activity. The company’s software then takes action based on the user’s behavior, whether it be authentication measures such as two-factor authentication or dynamic challenge questions that require the user to answer correctly before allowing access.

The company is able to offer these measures by utilizing its patented technology specifically designed for fraud prevention and detection. That technology contains a combination of advanced machine learning algorithms which monitor billions of user events per day to detect suspicious activities while simultaneously providing legitimate users with fast responses when interacting with websites or mobile applications. Therefore, not only can Arkose Labs prevent fraud but they can also speed up transactions while ensuring customer experience remains unaffected.

By deploying its comprehensive suite across multiple industries ranging from digital banking and payments to travel platforms, Arkose Labs has quickly established itself as a leader in digital security services. Their ability to provide scalable solutions tailored for each client allows them to effectively meet customer needs no matter how large or small their current threat landscape may be. Ultimately allowing them not just protect businesses from cyber criminals but also reduce their bottom line losses when operating digitally in today’s internet age.

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Features of Arkose Labs’ Fraud Prevention Solutions

Arkose Labs is a fraud prevention firm that focuses on helping organizations protect their digital channels, preserving customer trust and leveraging the power of online transactions. The company has developed sophisticated solutions to stop fraud before it reaches the end-user, offering superior protection that allows businesses to remain competitive while reducing operational costs.

Arkose Labs’ fraud prevention solutions are based on a set of features and capabilities which include:

1. Behavioral biometrics: Arkose Labs’ behavioral biometrics engine analyzes millions of interactions and learns from them to detect fraudulent activity in real-time. It measures multiple attributes across each session – including mouse movements, typing cadence, text entry speed and other signals – to identify anomalies as they happen.

2. Dynamic challenge questions: Arkose Labs’ interactive challenge questions dynamically adapt to be more difficult or easier based on a user’s specific characteristics, creating an intuitive and interactive user experience that helps discourage automated malicious actors trying to break into accounts or game systems.

3. Fraud pattern analysis: Arkose Labs analyzes patterns in user behavior data over time looking for signs of potential malicious activities such as device spoofing, account takeover attempts and IP address proxies. The system can detect bots attempting to access barred accounts by mimicking legitimate users’ journeys through websites or applications in real time.

4. Automated responses: Based on the patterns identified through fraud pattern analysis, Arkose Labs’ systems can make automated decisions without human intervention such as blocking transactions, applying additional verification steps or flagging accounts for closer scrutiny by security teams – all within milliseconds of detection for maximum efficiency and effectiveness.

Benefits of Implementing Arkose Labs’ Solutions

Arkose Labs offers prevention-first and automated fraud control solutions to help organizations protect their services and customers from emerging threats. Arkose Labs’ fraud challenges enable organizations to take an active stance against online fraud. In addition, Arkose Labs can instantly deploy advanced challenges requiring no engineering, implementation, or ongoing maintenance with its cloud-based platform.

As a result, organizations benefit from faster time to market for key security initiatives and improved user experience on their platforms or digital assets. With Arkose Labs’ solutions, business owners achieve improved customer satisfaction through seamless account security with minimal user disruption. Additionally, they gain advanced analytics through the platform’s AI-driven segmentation capabilities that allow them to baseline fraud and build custom challenges tailored to their specific customers and business objectives.

Arkose Labs’ solutions come with the most up-to-date fraud protection technologies such as multi-factor authentication (MFA), behavior biometrics, challenge puzzles, and device intelligence so businesses can confidently ensure their assets are secure from automated threats and abuse in real time. These features also promptly identify malicious activities by enacting trigger points that respond to suspicious activity and cease fraudulent activity quickly based on configurable thresholds. Lastly, through its proprietary global threat intelligence layer called ArkoShieldTM Arkose Labs is constantly monitoring fraudulent actors worldwide and keeps companies informed of global attack patterns providing strong actionable protections directly implemented into the platform allowing firms to adjust quickly when needed.

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Fraud prevention firm Arkose Labs raises $70M

In December 2020, fraud prevention firm Arkose Labs raised $70 million in its latest funding round. This brings the company’s total funding to $106 million. The Series C financing was led by new investor Sapphire Ventures, with participation from existing investors Andreessen Horowitz and PayPal Ventures. The funds will be used to accelerate product development and global expansion plans.

“We believe fraud is a solvable problem if approached proactively, with the right technology and team expertise,” said Arkose Labs CEO Kevin Gosschalk. “This round of funding is a tremendous vote of confidence from our investors in our mission.”

The Series C financing underscores clear urgency for next-generation solutions that can accurately detect suspicious activity without compromising user experience or customer engagement. With current strategies failing in the face of sophisticated fraud methods, the influx of capital will help bolster reinvestment into research, development and innovation of high performance tools that can protect user accounts against certain types of fraud.

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How Arkose Labs is Positioning Itself in the Fraud Prevention Market

Arkose Labs is positioning itself as the leading fraud prevention business in the industry, focused on delivering real-time on-demand security for digital storefronts. Arkose Labs’ unique business model first identifies malicious attacks and attackers, then takes proactive steps to protect customer accounts and systems from future theft or damage. The company’s proprietary algorithms are designed to consider the factors related to each transaction, including user behavior and session activity. This information allows Arkose Labs to create better-informed decisions, detect potential threats before they occur, and allow merchants to remain sure their customer data is safe from hacking or exploitation.

The company’s comprehensive portfolio of services includes:

  • Identity verification tools that protect users from account takeover and deactivation of accounts.
  • Real-time fraud detection for accelerating transaction processing speed.
  • Analytics that provide insight into fraud trends.
  • Compliance solutions such as KYC (know your customer) protocols.
  • Security scans for detecting malware.
  • Multi-factor authentication for two-factor authorization.

These solutions enable Arkose Labs to remain a frontrunner in fraud prevention by meeting customers’ needs with advanced technology and proactive protection measures.

Advantages of Arkose Labs’ Solutions

Arkose Labs is a global provider of fraud-prevention and risk-analysis services that protect businesses from cyber threats, account takeover attacks, payment abuse fraud and more. The company’s platform combines machine learning, forensic analytics and real-time web interception to accurately detect and protect users against online threats.

Arkose Labs provides businesses with a comprehensive solution that protects the business itself and its end customers. The platform offers a variety of advantages for its clients:

• Automated Accuracy: Arkose Labs’ automated systems employ advanced machine learning algorithms to accurately identify suspicious activity in real time. This allows businesses to quickly detect suspicous activity and begin prevention measures before it leads to fraud or other unwanted incidents.

• Security Benefits: Arkose Labs provides clients with secure authentication methods that allow companies to securely manage user accounts without compromising data security or privacy. In addition, the platform also helps ensure legitimate transactions are not blocked due to false positives or negatives.

• Low Infrastructure Cost: As the platform does not require on-premise hardware or software, companies benefit from significantly lower infrastructure costs than traditional cyber security solutions. This ensures higher ROI for their investments in fraud protection and reduces risk exposure.

• Scalability: Arkose Labs’ solutions are designed for scalability so companies can maintain their operations at any scale – from small businesses to large multinational corporations – that necessitate high levels of security at all times but also have varying demands for capacity and availability as needed. This ensures that clients have the flexibility they need for their business needs without worrying about additional cost or complexity in implementation.


In conclusion, Arkose Labs offers an innovative business model that has enabled them to provide effective fraud prevention solutions to various industries. By harnessing the power of cloud technology, the company’s solutions can process millions of transactions daily while maintaining the highest level of security. This has enabled them to rapidly expand their customer base and attract additional investors who are eager to finance the company’s future growth.

The successful fundraising round for $70 million will allow Arkose Labs to continue building on its success and further expanding its influence in the fraud prevention sector.