CertifID is a certified fundraising giant, raising almost $50 million in its latest funding round as it battles real estate fraud.
Austin-based fraud prevention company CertifID secured $47.5 million in Series C funding led by Centana Growth Partners to expand its real estate transaction security platform, Axios reported.
Chief executive officer Tyler Adams told the outlet that fraudsters target real estate because transactions are public, communications happen electronically and dollar amounts are substantial. The FBI reported more than $2.77 billion in business email compromise losses last year, one of the top types of real estate fraud.
CertifID’s platform combines identity verification, secure payment workflows and direct insurance coverage to protect real estate transactions. The system verifies identities and bank account details before facilitating secure communications and payments within its ecosystem. Each transaction carries up to $5 million in direct insurance coverage.
The company recently acquired payments.io to handle secure fund movement directly rather than relying on third-party payment processors. Adams said the acquisition allows CertifID to extend its value from early identification and verification to actually facilitating money movement directly.
Co-founder Tom Cronkright launched CertifID in 2017 after losing more than $200,000 to wire fraud while selling property through his Michigan title agency. The company’s fraud recovery team has since helped recover more than $100 million in lost funds and claims to have prevented $1.3 billion in potential losses last year.
Existing investor Arthur Ventures also participated in the round, bringing CertifID’s total funding to approximately $84 million since its founding.
The company plans to expand beyond real estate into other sectors vulnerable to business email compromise fraud. Adams noted growing interest from insurance companies holding cyber policies as they face increased claims and seek preventative measures for their clients.
Wire fraud is a significant issue in the industry. More than 13,000 people were victims of wire fraud in the real estate and rental sector in 2020, a 17 percent increase year over year, according to the National Association of Realtors. Losses that year totaled more than $213 million, according to FBI data.
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