Verituity: Revolutionizing Payout Verification

Verituity, a company based in McLean, VA, has secured a whopping $18.8 million in additional Series A funding. This funding will propel the company's mission to ensure that payments reach the rightful recipients, safeguarding against fraudsters lurking in the shadows of financial transactions. Financial services firms are under increasing pressure to tighten their grip on the gray area where unsuspecting customers fall prey to scams. Zelle, a prominent bank-run payments platform, has already taken steps to refund victims of impostor scams, setting the stage for more formal regulations to come. While U.S. lawmakers deliberate on the best course of action, their counterparts in the U.K. have swiftly moved to mandate reimbursement for victims of authorized payments fraud, effective this October. Verituity's approach involves a sophisticated blend of data analysis, delving into payments metadata and the history of transactions between parties to gauge the likelihood of fraud. A sudden change in the bank account number associated with a typical payout could raise red flags, signaling potential fraud or a business email compromise. Verituity's clientele extends beyond banks to encompass businesses paying vendors and insurers settling claims. What began as a digital check processing solution has evolved into a versatile platform supporting 10 payment methods, including ACH, PayPal, and Zelle. CEO Ben Turner emphasizes the company's ability to assess the legitimacy of accounts with confidence, ensuring that payments reach their intended destinations securely. Verituity processes nearly $4 billion in payments annually through its platform, earning a percentage of each verified transaction along with an annual subscription fee. The recent funding round, spearheaded by Sandbox Industries and Forgepoint Capital, with contributions from Ardent Venture Partners and MTech Capital, brings Verituity's total funding to $28 million since its inception in 2020. Forgepoint Capital's managing partner, Don Dixon, foresees a costly future for financial services firms grappling with regulatory demands to reimburse user-authorized fraud. Verituity's innovative approach to payout verification not only safeguards against fraudulent activities but also streamlines payment processes, minimizing risks and optimizing payout economics. With plans to expand into banking, insurance, mortgage servicing, and energy sectors, Verituity is poised to revolutionize the landscape of secure digital payments.