Resistant AI, the leading provider of native artificial intelligence models for financial crime and fraud prevention, today announced a $25 million Series B funding round. The round was led by DTCP, with strong participation from existing investors including Experian, GV, and Notion Capital who are doubling down on their investment. The company, which was breakeven in September, will use the capital to solidify its position as a profitable EU AI champion by expanding its document fraud detection and transaction monitoring offerings into new territories and partnerships, and build out its threat intelligence capabilities.
The new funding comes as the anti-fraud and regtech market is being transformed by fully-native or bolted-on agentic solutions that replace static workflows with cheaper, smarter adaptive ones. However, these large language model-based agents are structurally unable to perform the quantitative risk analysis needed to combat fraud and fincrime, suffer from high systemic hallucination rates of 10-30%, and have proven extremely difficult to keep secure from adversarial manipulation.
Resistant AI aims to protect and empower these AI agents and their overwhelmed fraud, risk and compliance teams. Its machine learning models detect fraud in documents, transactions, and behaviors, and can leverage signals from the rest of the customer’s risk tech stack. This unique approach creates unparalleled uplifts in recall, precision, and contextual decision-making in detecting sophisticated financial crimes such as real-time payment (APP) fraud, synthetic corporate identity fraud, money muling, generative AI document fraud, and complex money laundering schemes.
Financial crime is itself undergoing an AI-driven transformation and growing at unprecedented speed with 35% of businesses reporting being hit by GenAI-related fraud[1]. Meanwhile, Resistant AI’s Threat Intelligence research shows the Fraud-as-a-Service economy is rapidly maturing with easy-to-search online markets selling over 160,000 pre-verified accounts from more than 3,000 financial institutions[2] to fuel APP scams that have already cost the economy a trillion dollars. With global regulators emulating the UK Payment Systems Regulator’s mandatory APP fraud reimbursement rules, the need for advanced detection capabilities has never been more urgent.
Since its Series A, Resistant AI’s Annual Recurring Revenue has increased 10x, while its customer base has grown 4x. The service has now become the uncontested leader in Ai-driven document fraud detection, with over 150 million documents verified, and the number of transactions analyzed for fraud and AML has grown 100x as demand for advanced fraud detection capabilities across the financial services sector soars.
Martin Rehak, CEO and Founder of Resistant AI, said, “The financial crime landscape has fundamentally changed with the deployment of LLMs and AI agents in risk prevention settings, and the weaponization of generative AI by fraudsters. Our fraud and fincrime models offer any institution the tools to empower both their human and agentic co-pilots to combat these AI-powered threats at scale. This funding, combined with our near-term path to profitability, allows us to accelerate our mission of protecting the global financial system from increasingly sophisticated criminal networks.”
Michael Rager, Partner at DTCP Growth, comments:“Resistant AI represents the future of financial crime prevention, with their in-house built multi-model approach to fraud detection marking a paradigm shift in how financial institutions can protect themselves and their customers. We look forward to partnering with Martin and the Resistant AI team to support the business in its next stage of growth.”
The company continues to protect a growing roster of global financial institutions, fintechs, and enterprises, building on its existing customer base that includes Dun & Bradstreet, Payoneer, Close Brothers, PennyMac, AXA, Anna Money, Finom, and Bank of Valletta. Resistant AI now employs over 100 team members across offices in Prague, London, and New York.
Read the orginal article: https://ffnews.com/newsarticle/funding/resistant-ai-raises-25-million-in-series-b-funding-to-empower-ai-agents-to-fight-fraud-and-fincrime/
