Prague-based Resistant AI is fighting financial crime with AI. It has secured $11 million investment in a Series A extension from Notion Capital, this brings its total Series A round to $27.6 million. Its initial round saw investment from GV, Index Ventures, Credo Ventures, and Seedcamp.
Resistant AI's products prevent a safe guard from attacks on financial systems, using AI and machine learning to prevent the likes of money laundering and fakes opening bank accounts.
“Security and fintech are two of the largest areas of focus for Notion and we love how the Resistant AI proposition ties them together. Synthetic identity fraud has been named the fastest growing financial crime in the US, with $6 billion in total losses to the banking sector in 2021 alone, and the Resistant AI product is the only comprehensive solution out there that moves as fast as the fraudsters do. We’re excited to be working with them so they can meet the growing demand for their solution,” says Kamil Mieczakowski, Principal at Notion Capital.
Statistics from Interpol show a scale of the problem banks and fintechs are facing. ‘17% of bank statements/utility bills/paychecks used for lending applications, ‘know your customer’ (KYC) regulations, and other purposes worldwide are tampered with; and 15% of company registration certificates submitted worldwide when opening bank accounts are fakes. Money laundering is rife too, with the UN estimating that between 2-5% of global GDP is laundered each year'.
“The transition from traditional finance to fintech has brought creativity and opportunities for customers, but there has been an accompanying rise in criminals exploiting these new services. The old methods of fighting financial crime cannot keep up and Resistant AI’s unique application of machine learning successfully tackles these ever-changing threats,” says Martin Rehak, CEO and founder of Resistant AI.
“With this investment from Notion Capital we are able to build on this success and bring our solution to more institutions in the face of these increasingly pernicious threats. We are excited to be working with Notion Capital, particularly because of their expertise and track record in successfully growing computer security companies,” says Rehak.