Startup that uses AI to foil online money laundering raises $35 million

Investors in EverC, formerly called EverCompliant, include Israeli VC Red Dot Capital Partners, Viola Ventures, Arbor Ventures, and American Express Ventures

Shoshanna Solomon is The Times of Israel's Startups and Business reporter

The team of Israeli startup EverC, formerly EverCompliant (Courtesy)
The team of Israeli startup EverC, formerly EverCompliant (Courtesy)

EverCompliant, a startup that gleans online data intelligence to detect and prevent money laundering via online transactions, said it has raised a $35 million in Series B funding.

The money raised will help the startup meet growing demand from banks, credit card companies, payment processors, payment facilitators, online marketplaces, and law enforcement agencies, the company said in a statement. The firm has also rebranded to EverC.

Red Dot Capital Partners, an Israel-based early growth stage venture capital firm, led the round. Maor Investments joined the round, as did the company’s existing backers, among them Joey Low, Viola Ventures, Arbor Ventures, and American Express Ventures.

While the volume of global e-commerce transactions was already rising pre-COVID-19, the pandemic has accelerated the adoption of digital payments, and an increase in criminal activities online has followed in its wake. Recent high-profile cases have only highlighted what has already become an unprecedented level of online money laundering, EverC said in a statement.

Figures provided by the startup show that some $500 billion is laundered annually through fraudulent e-commerce transactions. In addition, there are 6 to 10 million online merchants currently using existing online payment systems to process transactions without the knowledge or consent of the financial institution they are processing through.

EverC believes its data intelligence capabilities will help reduce online crime and help boost e-commerce growth. The firm uses artificial intelligence to look into its client’s portfolios and identify links with potential criminals using its cyber intelligence capabilities.

“Many types of serious criminal activities are trying to hide behind legitimate-looking facades that are very difficult to track and unmask, digital technology has made it easier for potential fraudsters to hide in plain sight,” said Ron Teicher, EverC’s co-founder and CEO. “We believe that light is the best disinfectant and transparency and visibility are critical in doing business in the digital age. EverC aspires to be a source of confidence for organizations who facilitate payments online, providing them the tools, data, and insights needed to navigate risk and capitalize on new opportunities.”

“As commerce moves increasingly online so does the crime associated with it. EverC is at the forefront of machine learning and AI research to develop technology that addresses a problem of epic magnitude, with a direct impact on the wellbeing of all of us,” said Barak Salomon, managing partner at Red Dot Capital Partners. Salomon is joining EverC’s board.

Founded in 2008 by Ron Teicher, Noam Rabinovich and Raz Abramov, the firm is headquartered in New York City with offices in Tel Aviv and Shanghai.

EverC’s products, MerchantView for detecting online money laundering and MarketView for keeping marketplaces clean from illegal products, are being used by the financial institutions and payment service providers, including Fortune 500 companies in North and South America, EMEA and Asia Pacific, the statement said.

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