Bleckwen, a company specializing in the detection and prevention of payment fraud, has just announced the raising of €8.8 million to accelerate its international growth.
The average cost of payment fraud amounted to 744 million euros in 2017, according to the latest report published by the Banque de France. To combat this scourge, some banks are calling on startup Bleckwen.
A fraud detection platform based on Artificial Intelligence
Bleckwen was born in 2016 within Ercom, a French ETI specializing in cybersecurity solutions for governments. The startup became independent in January 2019 following the acquisition of its parent company by Thalès.
The young company offers a payment fraud detection and prevention solution based on Artificial Intelligence. These technologies enable the company to analyze billions of payment transactions in order to develop predictive models, as well as to detect fraud in real time. When the solution detects an unusual event, the payment is put on hold and then studied in the middle office. The bank can also call the customer to confirm or reject the transaction.
Bleckwen, which is aimed at both financial institutions and payment service providers, has already won over several customers, including 2 major French banks. Bleckwen's solution is marketed via a subscription license, which can cost up to several million euros, depending on the volume of transactions processed.
Technology ready to go global
The Paris-based fintech recently announced a €8.8 million financing round led by Ring Capital, alongside management company Tempocap, Bpifrance and Ineo. Bleckwen's managers also participated in the round. These funds will enable Bleckwen to accelerate its international growth, particularly in the UK, Germany and the Netherlands, as well as to design new products to better combat money laundering and the financing of terrorism, which represent a huge cost for banks every year. A report published last October by Fortytwo Data shows that 18 of Europe's biggest banks have already been convicted of anti-money laundering offences in the last 10 years.
The startup has also announced plans to recruit product profiles and data scientists. Already employing 35 people, Bleckwen is set to pass the 50-55 mark by the end of 2019.
Bleckwen, voted Fintech of the Year by the Euro Banking Association
3 years after its creation, Bleckwen has been voted Fintech of the Year by the Euro Banking Association (EBA). The startup hopes to use this award to attract new banking establishments. Indeed, Yannick Martel, Head of Products, Strategy and Data Science at Bleckwen, points out that $4,000 billion is embezzled and laundered worldwide via the financial system every year.