Market Overview

Arkose Labs Empowers Enterprises to Stop Online Fraud and Abuse; Secures $6M in Series A Funding

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Investment reflects breakout customer success including Electronic
Arts; Company
adds industry luminaries to board of directors

Arkose
Labs
, providers of online fraud prevention technology combining user
risk assessment and sophisticated enforcement challenges, today
announced it has successfully closed a $6 million round in Series A
funding led by US Venture Partners.

The company helps some of the world's most targeted businesses solve
online fraud that can cost millions each year in financial losses with
its sophisticated global telemetry, user behavioral risk assessment and
patent-pending enforcement challenges. Arkose Labs plans to use this
infusion of funding to expand its product roadmap and go to market
efforts.

"As automated attacks become more sophisticated, there is a growing need
for security solutions that can not only identify fraud and abuse, but
also provide an enforcement capability to prevent it," said Kevin
Gosschalk, CEO of Arkose Labs. "Stopping fraud requires a solution
rooted in prevention, not mitigation. This is what makes our technology
unique. We are the only company to offer the combination of global
telemetry and a reliable enforcement mechanism that is guaranteed to
stop automated abuse."

"This funding will allow us to accelerate hiring across the
organization, expand our product roadmap, build out our enterprise go to
market teams, and solve multi-million dollar problems for our expanding
customer base," added Gosschalk.

Online fraud has skyrocketed over the last few years, driven primarily
by economic motivations. According to PwC's
2018 Global Economic Crime and Fraud Survey
, 49 percent of global
organizations say they've experienced fraud and economic crime in the
past two years, up from 36 percent in 2016.

Arkose Labs technology exclusively stops abuse before it occurs without
adding friction to the user experience, and is the only solution
provider to offer a 100 percent service level agreement that includes a
money-back guarantee for customers in the event that the technology does
not stop an automated attack. With the prevalence of more sophisticated
automated attacks, adoption of Arkose Labs technology is accelerating
across sectors including online marketplaces, travel, banking, social
media, ticketing and online gaming.

As companies across the industry are experiencing more fraudulent user
activity coming from automated bots, game maker Electronic Arts decided
to look for a new solution to eliminate the problem at the source. The
EA Team found that the Arkose Labs solution worked seamlessly within its
existing architecture.

"Immediately after deploying Arkose, we saw a dramatic difference," said
Matt Thomlinson, senior vice president and CISO for Electronic Arts. "It
was like night-and-day. Our team was amazed at how well the solution
worked compared with our previous technology, and it allowed us to free
up resources and energy to focus on continuing to innovate for our
players."

In addition, the company announced Dafina Toncheva, partner with US
Venture Partners, and Jeremiah Grossman, founder and CEO of Bit
Discovery, will join its Board of Directors. Toncheva has extensive
experience with cybersecurity startups such as Prevoty, Kenna Security
and Cloudflare. Grossman, formerly an advisor to Arkose Labs, is a
world-renown professional hacker and founder of WhiteHat Security.

"Arkose Labs is bringing a unique approach to fraud and abuse prevention
that combines telemetry and enforcement, that we simply have not seen
before," said Toncheva. "We believe this technology will have a material
impact on all businesses with an online presence as they continue to
take steps to protect customers and stop malicious behavior in its
tracks."

"For nearly two decades I've witnessed the serious social and financial
impact of automated abuse on organizations and millions of their
customers," said Grossman. "As soon as I saw what Arkose Labs technology
was capable of, I knew I had to be involved. To say their technology is
innovative just doesn't go far enough -- it's game changing."

About Arkose Labs

Previously known as FunCaptcha, Arkose Labs is solving multi-million
dollar online fraud problems for major global businesses in sectors
including online marketplaces, travel, banking, social media, ticketing
and online gaming. Our bilateral approach combines global telemetry with
a patent pending enforcement challenge that stops fraud without false
positives and without friction for users. Arkose Labs is based in San
Francisco, Calif., with offices in Brisbane, Australia. For more
information, visit www.ArkoseLabs.com
or on Twitter @ArkoseLabs.

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