CertifID, an anti-wire-fraud tech startup, has announced $20 million in funding led by Arthur Ventures. This latest investment has doubled CertifID’s valuation.
Founded by Thomas Cronkright in 2017, CertifID emerged in response to Cronkright’s personal experience—a $180,000 loss to fraud in his Grand Rapids, Michigan-based real estate title agency. Real estate wire fraud has been surging, with the FBI reporting over 13,000 victims and $213 million in losses in 2020, a 380% increase since 2017.
Cybercriminals often gain access to email accounts, frequently those of prospective homeowners. Subsequently, they act as legitimate representatives of financial institutions, sending counterfeit wire transfer instructions to unsuspecting homebuyers.
CertifID provides protection against wire fraud for homebuyers, home sellers, and real estate enterprises. They offer secure transaction management, up to $1 million insurance coverage, detailed buyer wiring guidance, and seller identity verification protocols. The company also relies on AI to enhance its fraud prevention efforts.
Source: CertifID
“Despite a downturn in the housing market, CertifID continued to see increased demand in its products and services. Fraud has continued to increase through a pandemic, a bank crisis and ongoing twin threats of inflation and recession. And it’s expected to continue to rise into the foreseeable future. With the majority of the real estate industry yet to adopt anti-fraud technology, the company expects continued growth ahead,” shared the CEO, Adam.
So far, CertifID has attracted a varied client base, including hundreds of title agents and real estate firms. They also collaborate with federal law enforcement to assist in fraud recovery when their verification software isn’t employed. Using this recent funding, CertifID intends to enhance product development efforts and scale operations to meet the growing demand for its real estate anti-fraud solutions.