Innerworks Raises $4M To Scale Its Platform Combating AI-Powered Fraud And Strengthen Global Internet Security
In Brief
Innerworks has raised $4 million in seed funding to expand its AI-driven fraud detection platform that identifies authentic human behavior amid sophisticated synthetic interactions.
Company specializing in Synthetic Threat Intelligence, Innerworks announced the completion of a $4 million seed funding round aimed at expanding its platform for providing advanced internet security. The round was led by AlbionVC, with participation from Digital Currency Group, Founders Capital, Firestreak Ventures, NVTBL Ventures, and Metaversal Ventures. Additional investors include Crypto.com (Cronos) and senior executives from Citi, UBS, Coinbase, Checkout.com, and Apple.
“We invested in Innerworks because they’re not incrementally improving fraud detection, they’re fundamentally reimagining it,” said Cat McDonald, Partner at AlbionVC, in a written statement. “Their ability to detect what other systems miss represents an essential new security layer for the financial sector’s response to this new threat landscape,” she added.
Founded by Oliver Quie as CEO, Oscar Hayek as CTO, and Tom Ryan as Chief Product Officer, the company brings extensive expertise in AI and decentralization. Innerworks has developed innovative technology to detect and counter sophisticated AI-driven fraud that often evades conventional security systems. The technology has demonstrated effectiveness in high-risk sectors, including banking and national infrastructure defense, and through a partnership with incident response firm ZeroShadow, has helped identify activity tied to North Korean actors responsible for the $1.5 billion cryptocurrency heist, the largest in history.
Innerworks intends to utilize the newly secured funding to expedite the advancement of its product offerings, broaden the reach and activity of its RedTeam ecosystem, and increase its operational presence in major financial hubs worldwide. The company’s primary objectives include enhancing the platform’s adversarial training functionalities and establishing strategic collaborations with leading financial institutions that are proactively addressing the challenges posed by synthetic threats.
Innerworks: Leading AI-Driven Fraud Detection With 97% Threat Accuracy
The need to differentiate genuine human behavior from complex AI-generated synthetic interactions has become increasingly urgent. In 2024 alone, bot-related attacks caused nearly $200 billion in losses, with automated traffic now representing the majority of online activity. Innerworks’ Synthetic Threat Intelligence addresses a shifting security landscape where the primary challenge is not merely detecting known malicious actors, but identifying authentic human interactions amidst AI-generated activity that closely mimics legitimate users. The threat is escalating fast, with deepfake-related fraud increasing by more than 2,000% since 2022.
The Innerworks platform generates reliable risk signals from thousands of real-time data points while requiring only minimal integration, operating discreetly behind applications or websites without disrupting the user experience. The technology has been adopted by leading payments and digital asset companies, including Crypto.com (Cronos), ZeroShadow, which is investigating the $1.5 billion ByBit hack, and a major payments network serving over 150 million users.
A central feature of the platform is RedTeam, the first crypto-bounty program designed for adversarial AI testing. This initiative leverages a global network of ethical hackers and AI agents to continuously probe for vulnerabilities, challenge Innerworks’ systems, and contribute to the development of its defenses.
Innerworks has achieved a 97% detection rate against even the most advanced AI threats, surpassing the performance of multibillion-dollar companies and outperforming all top five incumbent security providers in comparative evaluations.
“We’re facing AI-powered deception that can mimic legitimate users with frightening accuracy,” said Oliver Quie, CEO of Innerworks, in a written statement. “Existing security companies have become obsolete because they assume threats will behave differently than legitimate users. Our platform solves this problem using Synthetic Threat Intelligence and decentralised training to defend against even the most sophisticated AI-based attacks,” he continued.
“Having now proven our approach alongside global brands, we feel Innerworks is well positioned to become core security infrastructure for the wider internet, helping to protect user ecosystems online,” Oliver Quie added.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
