AI anti-fraud detection software company, Lynx , has recently announced it secured a Series A funding round of EUR 17 million, with the participation of Forgepoint Capital . Forgepoint Capital, a venture capital firm focused on digital infrastructure software and cybersecurity was joined by Banco Santander.

The funds will be used to create new and advanced AI and ML learning solutions to further expand globally and build out a competitive platform. The current costs of global digital fraud Digital fraud remains the fastest-growing type of fraud, especially in a post-pandemic world and with the acceleration of ecommerce. A report by TransUnion suggests that between 2023 and 2027, cumulative merchant losses to online payment fraud will exceed USD 343 billion, while fintechs spend close to USD 206 billion annually on financial crime compliance.

At the same time, a report by the UN Office of Drugs and Crime suggests that the total amount of money laundered ranks between 2% and 5% of the global annual GDP or anywhere between USD 800 billion to USD 2 trillion. Lynx’s solution to fighting fraud and money laundering With over two decades of existence, Lynx focuses on deploying advance AI and machine learning techniques to prevent digital fraud and efficiently fight money laundering. It does so by predicting and detecting behavioural patterns and attributing fraud scores in real-time.

Currently, the company helps financial institutions across the Europe, the US, and Latin America to validate over 58 billion transactions from 300 million bank customers per year. Lynx is specialised in fraud prevention solutions tailored for cards, digital banking, ecommerce, physical branches, telephony, and even ATMs. At the same time, the company uses insights from fraud prevention to continuously increase its data sets and enhance its AI and ML models, aiming to improve fraud risk scores and detect fraudulent activities in real-time, before putting a financial string on companies and banks.

Lynx also helps consumers safely and securely conduct transactions without delays, while financial institutions benefit from fewer false positives and increased approval rates. Lynx will use its Series A funds to boost its global expansion strategy and further develop, create, and implement new AI and ML models for 360-degree visibility of risk. Back in 2022, Forgepoint Capital and Banco Santander announced a strategic partnership to boost cybersecurity innovation across the globe, and Lynx is their first joint investment.

About Lynx Headquartered in Spain, Lynx’s solutions leverage academic expertise and high-end engineering developed over the span of two decades to deliver customisable AI and ML fraud prevention solutions. The company developed a ‘Daily Adaptive Model’ that allows the model to continuously learn new behaviours daily, enhancing the accuracy of risk scores. .