SpyCloud raises $30 mn in Series C funding to prevent account takeovers

By Pavithra R

SpyCloud, a leading account takeover prevention and fraud investigations platform provider, has announced that the company has raised $30 million in series C funding led by Centana Growth Partners. The investment round saw participation from existing investors, including M12 (Microsoft’s venture fund), Altos Ventures, Silverton Partners, and March Capital Partners.

Organizations and individuals are under constant threat from criminals who develops new ways to collect and weaponize stolen information. The company is planning to use the finance to bolster its product, engineering teams and build innovative ways to detect and prevent fraud.

“Criminals work together to steal information and find creative ways to monetize it. As a result, even the most careful and sophisticated organizations are vulnerable. SpyCloud will continue to pursue new and innovative ways to stay ahead of criminals and provide solutions that make the internet a safer place for individuals and businesses,” said Ted Ross, SpyCloud CEO and co-founder.

With the increasing drive towards digital transformation in this COVID-19 era, criminals are finding fresh opportunities to exploit internet users. During the initial days of the pandemic, SpyCloud researchers uncovered 139,000 new web domains related to the virus and multiple scams being used to exploit people, such as criminals posing as government agencies and perpetrating credential stuffing attacks on food delivery apps. The company has continued to track and identify emerging threats and malicious activity correlated to the timeline of the pandemic.

Account takeover is one of the most common methods for criminals to gain access to sensitive personal and corporate information. SpyCloud helps prevent this by finding exposed employee and customer accounts early and automating the remediation before damage can be done.

“SpyCloud’s approach to fraud prevention is helping businesses protect themselves and their customers at a time when threats are more pervasive than we’ve ever seen. We heard from major financial institutions and a wide range of enterprises that SpyCloud’s solutions are critically important to their anti-fraud efforts. We’re proud to help them continue the fight and discover new ways to protect both companies and consumers from these evolving threats,” said Eric Byunn, partner at Centana Growth Partners who joins SpyCloud’s board.

Also read: Robinhood secures $200mn in Series G funding from D1 Capital.

Founded in 2016, SpyCloud is focused on preventing account takeover fraud with its proactive solutions, which protect billions of employee and consumer accounts worldwide. Its solutions are backed by a comprehensive and actionable repository of recovered stolen credentials and PII, with over 100B assets and counting, including more than 21B passwords.