Socure to Acquire Effectiv: The Market’s First Unified Identity, Fraud, AML and Risk Decision Engine

It’s a big day at Socure. Today, I’m excited to announce our agreement to acquire Effectiv, a real-time risk decisioning platform built by fintech veterans and long-time Socure partners.

This strategic move elevates our digital identity verification and fraud portfolio of solutions with a comprehensive, developer-friendly real-time decisioning engine. It introduces dramatic efficiencies into how our customers will implement, run shadow-mode A/B tests, and manage their identity and fraud stacks, significantly accelerating their time to value with every decision.

It also significantly expands the kinds of fraud and risk problems we can solve together – while furthering our dedication to allowing our customers to say ‘yes’ more than anyone else.

Revolutionizing Fraud and Trust With ‘Certainty in Identity’

This acquisition changes how we battle fraud and AML in two significant ways:

1. Socure’s capabilities now go far beyond onboarding, allowing us to address identity, KYB (know your business) and fraud challenges at login, payment and account recovery, as well as at various step-up authentication events throughout the end-to-end user lifecycle.
    
   Socure has invested more than a decade in solving arguably the most difficult risk challenge in the digital landscape – saying ‘yes’ to more brand-new consumers at onboarding, while deterring the most difficult fraud attacks at scale. We did that by building a comprehensive portfolio of verification and fraud solutions from the ground up that uniquely provide a 360-degree of identity – what we call ‘certainty in identity’.
    
   With the Effectiv platform, our customers can now easily integrate our solutions, along with those from other third parties, in combinations that automate risk and trust decisions at onboarding and beyond in connected workflows from a single end point. With near perfect decisioning at new account opening, we are in the unique position to stop attacks and drive trust at login, authentication, payments, account changes, account recovery and regulatory filings through a single platform with a stateful, adaptive view of the same identity at every touchpoint across the enterprise.
2. Partners no longer have to choose between solving for identity or AML and fraud transaction monitoring and anomaly detection. We’re powering a single view of identity, transactions and accounts.
    
   Historically, entire companies were built either knowing identity or specializing in transaction anomaly detection, but failing entirely to integrate the two.
    
   Our partnership with Effectiv opens the door to combat the most complex fraud, scams and AML challenges with what will ultimately be a unified view of identity, transaction attributes, account validation and case management.

Get Ready for Enormous Efficiency Gains

On the mission to tackle fraud and risk challenges, many organizations have amassed a maze of fragmented point solutions, which are difficult and costly to implement and integrate, often resulting in sub-par performance, unnecessary expense and conflicting outputs.

Effectiv enables users to streamline their operations by standardizing on the Socure platform, providing end-to-end management that eliminates the complexity and overhead costs associated with multiple tools.

This allows users to:

• Implement and integrate Socure solutions along with third parties, using a no-code interface that means no engineering resources, and less up-front technical investment.
• Write decision logic rules with a simple GUI to drive real-time decisioning from combined solutions, including A/B testing, and apply case management across these tools — that simplifies the management across tools and orchestrates outcomes.

The platform also enables the ability to develop and import an enterprise’s own machine-learning models to support unlimited solution configurations inclusive of ingesting custom data – delivering the flexibility necessary to tackle fast-changing fraud attack patterns, and unique customer risk profiling across any industry.

New Market Synergies, New Opportunities

This platform approach is critical for Socure’s next growth phase. Across our customer base, we’ve seen great demand to implement a single identity platform that can solve fraud, risk, AML and trust across the customer lifecycle, and be leveraged across each of their lines of business with distinct configurations. In this strategy, we can now deepen roots in our enterprise partnerships, while making it simpler and more profitable to go direct in the midmarket. We believe we hit the sweet spot with Effectiv.

Welcome, Effectiv team!

With this acquisition, we’re welcoming the entire Effectiv team to Socure. Founded in 2021 by Ravi Sandepudi, Ritesh Arora, Jonathan Doering, and Anupam Tarsauliya — who had previously built risk platforms for industry giants like PayPal, Google, and Walmart. Socure first collaborated with the Effectiv team during their time at Simility, a fraud platform that PayPal acquired for $120 million in 2018.

One of the biggest trade-secrets in the platform game is getting your architecture and infrastructure built right from the beginning. It is nearly impossible to change that after you’ve onboarded hundreds or thousands of customers — a major challenge plaguing many of the existing platform providers. The road-tested Effectiv team has sprinted past these issues, standing far apart from existing offerings with their flexibility, computational complexity and scale.

At Socure, the Effectiv team will drive our platform product, technology, data science and go-to-market initiatives.

Together we will pair our best-in-class, entirely homegrown, identity and fraud solutions with a robust underlying orchestration and decisions platform — a combination of technology not held by a single competitor – and one we can immediately bring to our nearly 3,000 customers.

Learn more about the acquisition here — and stay tuned for more updates!