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Deduce Exits Stealth with $7.3M in Seed Funding to Give Small Companies FAAMG-Like User Account Security

First-of-its-kind platform combines a vast network of secure user-profiles and powerful behavior-detection algorithms to protect end-users from account takeovers that fuel $45B in annual cybersecurity losses


Deduce, the leading provider of cybersecurity solutions powered by real-time customer identity, today announces the launch of the Deduce Identity Network, the largest dataset of mathematically shortened and obscured, or “hashed,” profiles designed to protect user accounts from online fraud. The Deduce Identity Network draws data from over 150,000 diverse, security-minded partner websites and powers a suite of algorithms that generate an Identity Risk Index based on fraud-related behaviors. The company is also announcing a $7.3M in Seed round led by True Ventures with participation from Ridge Ventures and other angel investors. 

The world’s largest tech companies - Facebook, Amazon, Apple, Microsoft and Google - typically use advanced algorithms together with the vast amounts of data collected from users to spot potentially fraudulent behavior and notify account holders via familiar email and mobile alerts. Companies without access to such Goliath resources are too often left to make do with less effective tools that leave their account holders vulnerable. 

Deduce is the first company to bring together best practices in customer data and identity resolution with advanced cybersecurity technology routinely used by tech giants and make them practical - and affordable - to companies of nearly every size. 

“Cybersecurity is an issue that affects everyone in today’s economy and keeping the most powerful tools and strategies in the hands of a few high-powered companies is simply unfair,” explains Ari Jacoby, Deduce Co-Founder and CEO. “The Deduce Identity Network brings the best anti-fraud tools available to any size company to protect their customers’ accounts, reducing risk from fraud and potential regulatory fines, while boosting customer satisfaction and brand value.” 

Losses from cybersecurity breaches recently reached $45B with user account attacks like credential stuffing cited as one of the fastest-growing threats, according to the Internet Society’s Online Trust Alliance. In addition to operational losses, regulators around the globe are leveling record fines against companies whose weak security resulted in consumer data thefts. Meanwhile, brands that take consumer privacy seriously have higher customer satisfaction ratings clearly demonstrating the benefits of securing user accounts.

The Deduce Identity Network works within global data privacy rules, including GDPR and CCPA, to maintain more than 200 million US profiles that provide a baseline for determining whether a user is who they claim to be at the point of online interaction. Deduce uses advanced algorithms to correlate data from every web request, thereby continuously improving the network and providing additional value across its user base in real-time.

“Deduce makes it far easier for enterprises to build better, and safer software applications for the end consumer,” said Adam D’Augelli, partner at True Ventures. “Ari and the Deduce team have deep expertise and have drawn on that experience with data networks to attack an even larger problem in account identity and security. We’re very proud to invest in them.”

About Deduce
Deduce is a cybersecurity company focused on enhancing user experiences by protecting user accounts and data. Deduce builds innovative solutions that improve trust with users and enable companies to make better business decisions. The company is based in New York and was founded in 2019. For more information, visit

Ari Jacoby


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 Fraud Prevention
 User Account Security
 Credential Stuffing

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