CertifID Raises $12.5M to Protect Users From Wire Fraud
CertifID, a cybersecurity startup aimed at securing real estate transactions, will continue innovating its wire fraud prevention platform with a round of fresh funding.
The Austin and Grand Rapids-based startup announced Monday that it has secured $12.5 million in a Series A funding round that was led by Arthur Ventures. As part of the investment, Patrick Meenan, general partner at Arthur Ventures, will join the company’s board of directors.
Prior to the Series A round, CertifID raised $3.9 million in venture funding.
With the latest investment, CertifID CEO Tyler Adams told Built In the 30-person team will double in the next year to about 60 or 65 employees.
To adjust to the expected growth, CertifID is in the process of signing a lease for a new Austin office on South Congress Avenue, near Cosmic Coffee. Adams said they expect to move into the 5,000-square-foot space in June.
CertifID provides a SaaS security platform that uses identity protection to protect wire transfers. Prior to carrying out the wire transfer, CertifiID’s platform ensures that the transfer will be carried out between validated parties. The platform has unique wire solutions that meet its client’s specific needs, including real estate agents, title agents and law firms.
The idea for CertifID was conceived in 2015 when Lawrence Duthler and Thomas Cronkright, the co-owners of a Michigan title agency, lost $200,000 due to wire fraud and spent months trying to recoup their loss. Cronkright and Duthler, along with Adams, launched CertifID two years later, in 2017.
“The threat of wire fraud continues to develop as cybercriminals adapt their strategies and tactics, and we believe the effective use of technology can mitigate it,” Adams said in a statement. “We plan to continue investing in product innovation that helps title companies and law firms level up their operations on all types of transactions and transfers of funds.”
Besides verifying wire transfers, the startup also provides fraud recovery services for victims of wire fraud. Most importantly, it also provides cybersecurity education. The company has ongoing partnerships with the U.S. Secret Service and insurance companies, such as Lloyd’s of London, and works at raising awareness of security threats.
“Since day 1 of CertifID, education has always been our hallmark. We believe that the more we can educate the industry and everyone who participates in a real estate transaction, the better our chances are of slowing down the impact of fraud,” Adams said. “We are going to double down our education efforts in a big way.”