Why are there so many robberies and scams in crypto? A big reason is because “it’s one of the best you can steal, instantly transferable, irreversible, and replaceable” as crypto companies have few resources. more effort to detect fraudsters in the first place.
That is the view of Soups Ranjan, a former Coinbase and security executive Revolut, who founded a company called Sardine that helps detect cryptocurrency fraud. On Tuesday, Sardine announced it had raised $51.5 million in a Series B funding round led by Andreessen Horowitz and backed by investors including Google Joint venture and Passport.
In an interview with LuckRanjan said the crypto industry faces special challenges as it attracts the smartest cybercriminals, who specialize in defrauding crypto customers and companies, then employing aggressive tactics. Similar techniques for tracing traditional financial firms. For example, he cites social engineering scams in which crooks masquerade as IT support to convince victims to share their screens and unknowingly reveal important information used to rob their.
Ranjan adds that both crypto companies and new banks experience higher levels of fraudulent transactions in part because they do not share fraudulent data with each other in the same way as large banks. To this end, he said Sardine is building a consortium between traditional financial firms and crypto to help members identify known scammers.
Established in 2021, Sardine also offers biometric tool help companies detect fraudulent transactions. These include the detection of unusual input patterns — for example, fraudsters are much more likely to enter social security numbers or other personal data than legitimate users because they do not enter from memory .
Sardine executives also include cybersecurity veterans from PayPay, Uber, and Zelle. The company declined to disclose revenue numbers but said it has dozens of companies that pay, including crypto exchange giant FTX as well as fintech services like Brex and Wealth Simple.
Sardine’s Series B round comes later nurture $19.5 million earlier this year and $4.5 million last year. Other investors in the new round include a range of crypto and financial venture firms, including ING Ventures, ConsenSys, Cross River Digital Ventures and Uniswap Labs Ventures.