• Financing, led by Tiger Global with participation from South Park Commons, has helped foster the growth of a collaborative community of professionals working to stop financial fraud
  • Reports surging participation in fraud data consortium Fintech Fraud DAO, which launched last fall and covers more than 10% of adult consumer transactions in the U.S.
  • Introduces “Fraud Fighters Manual,” a first-of-its-kind compendium of fraud-fighting lessons from fintech’s leading practitioners

SAN FRANCISCO–(BUSINESS WIRE)–#ComplianceResourcesUnit21, the risk and compliance infrastructure company, is excited to share its $45 million Series C funding led by Tiger Global and South Park Commons in 2022. The funding has supported the growth of the Fintech Fraud DAO consortium, which is experiencing a surge in participation and now covers more than 10% of adult consumer transactions in the U.S. Unit21 is also pleased to introduce the first-ever “Fraud Fighters Manual,” a book developed in collaboration with fintech leaders from Brex, Mercury, Lithic, and Treasury Prime that shares insights and lessons to prevent fraud.

Financial fraud is exploding as a lucrative career for bad actors. Consumer losses due to fraud jumped 4.6 times in four years, from $1.9 billion in 2019 to $8.8 billion in 2022, according to the Federal Trade Commission. With traditional fraud detection methods no longer adequate, Unit21 and its partners are helping lead the pivot toward smarter, more proactive fraud prevention methods.

At its best, fraud prevention is a collective effort, requiring the collaboration of fraud and compliance professionals across the industry. Unit21 is developing the risk and compliance infrastructure to empower its partners with the tools to detect, halt, and update their systems to combat fraud and money laundering rapidly and effectively. The additional funding is being used to support the Company’s collaborative approach to address these growing threats.

Last fall, Unit21 launched the Fintech Fraud DAO, which enables fintechs to pool and share data to help identify fraud before it proliferates. Unit21 is thrilled about the DAO’s early success. Activity on the platform, whose members include Drivewealth, Uphold and Gusto, now monitors more than 10% of adult consumer transactions in the U.S.

“Our mission is to champion fraud prevention over detection. The evolution of fraud calls for an evolution in our approach and must be achieved through collaboration,” said Trisha Kothari, Co-founder and CEO of Unit21. “With the unwavering support of our partners and customers, and the backing of our investors, we’re eager to spearhead the fight against fraud and money laundering, striving to make the financial world a safer place for all through our shared commitment to the cause.”

Unit21’s infrastructure is being adopted quickly. In 2022, the Company helped clients monitor a total of 4.8 billion transactions, representing $693 billion in value, an increase of 5.2 times from the previous year. Meanwhile, the Company handled 16,000 suspicious activity reports representing $8.9 billion in value. This resulted in thwarting fraud attempts valued at more than $764 million, an increase of 3.4 times from the previous year. Unit21 believes these increases reflect the massive challenges the community faces and the importance of adopting a collaborative approach.

“Trisha and Clarence incubated Unit21 at SPC with the vision that combating fraud and money laundering requires an industry-wide collaborative effort. This vision is becoming a reality through the rapid adoption of the Fintech Fraud DAO, which handles more than 10% of the adult population. We are excited to continue supporting them in their mission to enable professionals to combat financial crimes!” said Ruchi Sanghvi, Founder of South Park Commons.

The Company is also excited to announce the publication of the “Fraud Fighters Manual”, which is part of its pursuit to arm risk and compliance experts with the necessary knowledge and tools to counter fraud. The “Fraud Fighters Manual” is co-authored by fraud and compliance experts from Brex, Mercury, Treasury Prime, Unit21, and Lithic and provides the first-of-its-kind peek into the minds of practitioners combating fraud daily. To order the book, please visit https://www.unit21.ai/resources/fraud-fighters-manual.

“In a world where financial fraud poses a significant threat, the Fraud Fighter Manual presented by Unit21 is an indispensable tool for anyone involved in the fintech, cryptocurrency, and neobank industries. The manual is a testament to the contributors and to Unit21’s commitment to fighting fraud and safeguarding financial systems. It strikes the perfect balance between being highly informative and easily accessible, making it a must-read for professionals at all levels of expertise,” said Bill Callahan, Director of Government & Strategic Affairs for Blockchain Intelligence Group.



Eric Kuo