IIFL Fintech Fund invests in fraud detection startup TrustCheckr

IIFL Fintech Fund has made a significant investment in TrustCheckr, a Bengaluru-based fraud analytics solution provider.

TrustCheckr is an AI-enabled tool that helps identify and remove fake users. The company has a proprietary algorithm tested on 1M+ data points and used in AI and ML in image comparisons. They assign a trust score to the user based on phone number, Facebook id, or email id.

IIFL Fintech Fund was set up in August 2021 with a sponsorship of Rs 140 crore from two IIFL Group companies – IIFL Finance and IIFL Securities. This is the 6th investment from IIFL Fintech Fund. The fund earlier invested in fintech startups like FinBox, Leegality, Trendlyne, DataSutram, and Finarkein Analytics and is planning to invest Rs 300 crore in Indian fintech startups in the next two years.

Commenting on the investment Mehekka Oberoi, Fund Manager IIFL Fintech Fund said, “We have been using TrustCheckr in our digital lending business and the solution has aided us in identifying digital frauds. In today’s era where technology is going to be the driver for financial services- mitigating fraud will take center stage. TrustCheckr is well placed and has an early mover advantage in this space.”

The funding from IIFL will be used to scale TrustCheckr usage across Banks, NBFCs, Fintechs, Payment companies, and Bureaus in India. Additionally, investments would go towards enhancing existing Social Scoring and Social fraud detection capabilities so that there could be a further reduction in digital frauds.

Going ahead- the company plans to further enhance its social scanning technology, which has multiple use cases like fraud pre-emption, customer profile enrichment for auto approvals, targeting, and recommendation use-cases.

Speaking on the investment round, Adhip Ramesh, Founder of TrustCheckr said, “Digital Frauds are increasing rapidly in the online world, a robust, fool-proof framework is the need of the hour. Companies should look into alternate data gathered from social media, websites, etc.., and use them efficiently to preempt fraudsters right at the stage of onboarding. TrustCheckr is at the forefront to help companies to achieve this.”

“Right from the beginning, we aspired to challenge the existing normative bureau centric framework of fraud prevention as it fails to capture digital frauds of different mediums. However, when TrustCheckr Fraud and Social Score is mapped against the corresponding credit score of a bureau; combined along with the Aadhar data, it can offer a fraud prevention framework that cannot be bypassed easily. Our data is complementary to the prevailing system,” Shivraj Harsha, Co-founder of TrustCheckr added.