How GMO-Backed Bureau ID Is Revolutionizing Business Security Against Financial Fraud

In the wake of the post-pandemic digital surge, industries, both traditional and modern, have embraced the online realm to enhance reach and boost profits. However, this shift has exposed businesses to an escalating threat of cybercrimes, particularly financial fraud. According to a survey by the Future Crime Research Foundation (FCRF), cyber-financial fraud accounted for a staggering 77.4% of all cybercrimes in India between January 2020 and June 2023. Startups and SMEs emerged as the primary targets, with banking and financial institutions witnessing 9.5% of all cyberattacks in the last three years.

Amid this landscape, serial entrepreneur Ranjan R Reddy introduced Bureau ID, a B2B SaaS startup offering a real-time risk decisioning platform for identity verification, fraud prevention, and compliance management. With a focus on aligning with country-specific cybercrime laws and anti-money laundering checks, Bureau ID empowers banks, fintechs, and enterprises to combat fraud and compliance abuse across the entire customer journey.

Bureau ID utilizes advanced techniques, including link analysis and predictive AI models, to build an identity graph that detects fraud networks. The platform leverages proprietary technology and alternative data points to validate digital identifiers, match them to physical identities, and analyse unique behavioural patterns in real-time. This process results in the creation of an identity network, securing businesses against cyberfraud throughout users' life cycles.

The startup's mission is to provide an all-in-one risk decisioning platform that ensures digital trust. Through no-code workflows and a single API integration, businesses can validate customer identities and receive continuous fraud monitoring during onboarding and transactions. Reddy claims that Bureau's solutions can reduce fraud by 80% and accelerate identity decisioning time by 95%.

Having served organizations globally, including banks, NBFCs, micro-finance institutions, BaaS platforms, and companies in various sectors, Bureau ID boasts a customer base across India, Southeast Asia, the Middle East, and North America. The startup claims to have successfully verified over 400 million identities and protected over $500 million in digital transactions to date.

Bureau ID's success in raising over $20 million in funding, including recent investments from GMO VenturePartners, Quona Capital, and Commerce Ventures, showcases its growing prominence in the cybersecurity landscape. Notable angel investors, such as Mark Britto and Bobby Mehta, further endorse the platform's cyber fraud prevention capabilities.

Inside Bureau’s State-Of-The-Art Fraud Prevention Offerings

Bureau ID's fraud prevention strategy is underpinned by a comprehensive suite of tools developed over time. Ranjan R Reddy's experience in scaling businesses in the mobile payment space, particularly at Boku, laid the foundation for Bureau's integrated approach. The startup's fraud detection suite includes no-code workflows, device intelligence, behavioural AI, compliance APIs, and alternate data solutions, visualized through an identity graph.

Addressing the issue of increasing cyberfraud, Reddy emphasizes the importance of smart identity decisioning, especially in detecting money mules who transfer stolen money through multiple accounts. Bureau employs device intelligence to cross-check unique device fingerprints, validating IP addresses, operating systems, VPN usage, and tracking remote desktop and malware activities.

Behavioural AI tools analyse human behaviour patterns, such as typing speed and scrolling patterns, to authenticate identity. Reddy highlights that criminals using stolen identities may display hesitation or rely on copy-pasting, which can be detected through behavioural AI.

Link analysis forms the final layer, assessing the risk associated with an identity based on the type and number of links, considering indications of past fraudulent activities reported by Bureau's customers. The resulting identity network provides businesses with a holistic view of their customers, enhancing security throughout the customer journey.

Bureau ID's no-code solutions enable easy integration with business backends via API, allowing companies to set up customized security features effortlessly. The platform has achieved SOC2 compliance, demonstrating its commitment to managing customer data securely. Importantly, Bureau does not store personally identifiable information (PII), generating only relevant, tokenized insights for identity verification.

The startup operates on a pay-per-API revenue model, allowing businesses to tailor APIs and workflows to their specific needs. A fixed monthly/annual platform fee covers essential functions like building workflows, transaction monitoring, and continuous screening, irrespective of API usage.

Tapping Into Investors’ Network For Growth

Despite a strong value proposition, Bureau ID faced challenges in raising awareness and onboarding B2B customers in its early stages. To overcome this hurdle, the startup leveraged its investors' network, particularly after raising additional capital in a Series A funding round in July 2023, with GMO VenturePartners as the lead investor.

GMO-VP's connections facilitated Bureau in servicing portfolio companies such as Jai Kisan, GroMo, OTO, Niro, and MobiKwik. Reddy acknowledges the invaluable support of GMO in expanding Bureau's customer base, emphasizing the significant benefits derived from their extensive portfolio and network.

Bureau ID has entered into a strategic partnership with GMO Payment Gateway, further enhancing its growth prospects. The startup aims to expand across the Middle East and Southeast Asia, aggressively marketing its solutions to increase awareness and cater to more institutional players, especially in the banking sector.

The Future Is Now For Fraud Detection Businesses

The global fraud detection and prevention market is poised to reach $66.6 billion by 2028, indicating substantial growth opportunities. However, organizations need to adopt more comprehensive approaches to tackle evolving fraud challenges. Deloitte suggests that complete automation and advanced AI/ML are essential in handling the vast and complex data associated with fraud detection.

Bureau ID, with its global presence and distinct offerings, currently faces limited direct competition from Indian players. However, the market is populated with global players like Alloy and Onfido, signalling a recognition of the need for comprehensive identity verification worldwide.

Ranjan R Reddy underscores the importance of businesses leveraging tools and technologies to champion consumer trust and proactively prevent fraud. Bureau ID's unique position, strategic acquisitions, and partnerships position it as a major player in the evolving landscape of fraud detection, paving the way for India's emergence as a significant hub for tailored solutions aligned with the compliance needs of banks and financial institutions.