TEL AVIV (Reuters) - Israeli cyber intelligence company EverCompliant said on Wednesday it raised $9.5 million in a funding round led by Arbor Ventures and included existing investors Carmel Ventures, StarFarm Ventures and Nyca Partners.
The funds will be used to open an office in Asia in 2017, for additional expansion in the United States and Europe and to grow its research and development operations.
EverCompliant focuses on detecting and preventing “transaction laundering”, where fraudsters take advantage of payment systems by funneling transactions through legitimate e-merchant accounts.
EverCompliant has identified close to 2 million unregistered merchants in the United States alone and said the payment industry is often unaware of merchant-based fraud until it’s too late.
“As e-commerce has evolved, money laundering has morphed into a new digital form,” said Ron Teicher, CEO of EverCompliant. “Most concerning is that transaction laundering is occurring right under the noses of regulators worldwide.”
Reporting by Tova Cohen