FinCrime Dynamics reports that it secured seed funding to improve financial crime prevention processes with AI and synthetic data.
More than 3 million cases of fraud are reported in the UK every year, shockingly it accounts for “nearly 40% of all reported crime.”
To tackle this, financial institutions are turning to AI but AI requires large amounts of “data and access to that data is a challenge.”
Strict privacy regulations such as GDPR have made it difficult to obtain the actionable data “needed to train these AI fraud detection tools.”
This shortage of reliable information is a growing concern for the sector, as it limits efforts to “stay ahead of sophisticated fraud schemes.”
FinCrime Dynamics, a fintech enabling financial institutions to build better defenses against financial crime using criminal behavioral intelligence and data resources, has “developed a platform that simulates complex fraudulent behaviors.”
This reportedly allows FIs to test their “existing detection measures and synthesize the data needed to improve them.”
Oxford Capital led FinCrime Dynamics’ seed investment round, alongside Twin Path Ventures and Syndicate Room, “backing founders Stephen Quick and Daniel Turner-Szymkiewicz.”
Stephen Quick, CEO and co-founder of FinCrime Dynamics said:
“Finding the right investor fit is an incredibly important long-term partnership for any venture. FinCrime Dynamics has always been extremely fortunate to attract a high calibre of investors.”
As noted in the update, FinCrime Dynamics provides the data infrastructure to power forward looking and trustworthy “defenses in the fight against financial crime.”
Headquartered in Cambridge (UK), the company enables financial institutions to access “criminal behavioural intelligence and data resources to test, tune and train anti-financial crime controls.”
FinCrime Dynamics data platform, Synthetizor, empowers users to generate financial crime simulations and custom synthetic data to “train machine learning with confidence about model quality and typology coverage.”
As mentioned in the announcement, Oxford Capital is a specialist investment manager focused on high-potential investments in “early and growth stage UK technology companies.”
With over 25 years of experience, they claim to invest in sectors such as digital health, fintech, and artificial intelligence and reportedly “have a strong focus on delivering value to our investors.”
They have reportedly invested more than £500m across “more than 100 EIS-qualifying companies.”