Deduce Secures $9 Million in Funding to Combat AI-Generated Identity Fraud

Deduce, the pioneering technology platform uniquely engineered to thwart AI-generated identity fraud, has today unveiled $9 million in funding. This funding round is spearheaded by Freestyle Capital, with further investments from Foundry and True Ventures. These financial resources will propel Deduce’s GenAI Identity fraud solution out of stealth mode and enable the company to expand its efforts in safeguarding against large-scale SuperSynthetic™ identity fraud across various sectors, including the financial service industry, fintech, and e-commerce.

The rapid advancement of Generative AI has greatly increased efficiency across various industries, including organized fraud, thanks to platforms like FraudGPT. Empowered by these innovative technologies, malevolent actors can utilize AI alongside stolen personally identifiable information (PII) to generate numerous credible digital identities, validate these identities with sophisticated deep fake biometrics, and fabricate online transactional histories. This technology allows cybercriminals to employ automation, creating a virtual legion of SuperSynthetic identities that are virtually indistinguishable from authentic ones.

Ari Jacoby, CEO of Deduce, emphasizes the critical juncture we face concerning the security and privacy of our most vital data. He notes that traditional fraud prevention methods are no longer sufficient to shield us from the scourge of AI-generated fraud. With the infusion of this fresh investment, Deduce can expedite the deployment of its solution to the market, thus preventing the subversion of the organizations it serves.

The detection of AI-generated identities necessitates an extensive identity database, one that continually monitors the vast majority of the U.S. online population multiple times each week. Deduce intends to harness intelligence driven by multifaceted contextual data to aid organizations in recognizing Super Synthetic identities both during the account creation process and within “sleeper” identities that have already been onboarded.

Jenny Lefcourt, Partner at Freestyle Capital, underscores the urgency of adopting solutions like Deduce’s, as the rapid uptake of generative AI technology empowers malicious actors with new tools for perpetrating fraud. She emphasizes that every company valuing customer data and identity will require a solution like Deduce’s without delay. Deduce has developed an exclusive solution designed to combat this emerging threat, making the decision to invest in scaling it a straightforward one.

Deduce employs a multi-contextual intelligence approach to gather and analyze real-time data from a diverse range of sources. This enables the system to identify identity patterns and flag digital forensic traces indicative of AI-generated fraud. By leveraging these patterns, Deduce can pinpoint abnormal behaviors within seemingly ordinary identities and flag them for further scrutiny.

Deduce’s AI-generated identity fraud solution is currently accessible through industry-leading partners, including Experian, ForgeRock, Auth0, and Ping Identity. To delve deeper into Deduce and its efforts in AI-generated fraud prevention, please visit

About Deduce:

Deduce specializes in detecting SuperSynthetic customers—AI-generated identities so convincing they deceive conventional fraud detection solutions. Deduce unmasks these SuperSynthetic identities by leveraging patented technology and the most extensive purpose-built identity graph, supported by activity-backed data. This graph encompasses 840 million U.S.-based email identities and generates over 1.5 billion authenticated online events daily across 150,000+ websites and apps. Deduce’s Identity Graph data powers real-time, multi-contextual digital forensics to safeguard new account creation workflows and expose dormant SuperSynthetic identities already residing in customer databases.

Deduce has garnered recognition, including the #1 Security spot in Fast Company’s World’s 50 Most Innovative Companies 2022 and the 2022 CISO Choice Award for Fraud Prevention. To learn more about the SuperSynthetic threat and Deduce’s solution, visit