Sardine Launches First Fraud Prevention as a Service (FaaS) for Next-Gen Crypto and Digital Financial Institutions

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XYZ-led $4.6M Seed Round backs Coinbase alumni’s vision to provide single platform fraud detection


Sardine is the first fraud prevention as a Service (FaaS) solution truly built for digital businesses, helping companies scale and grow with zero fraud.

Sardine today launches the first fraud prevention as a Service (FaaS) for digital businesses designed to detect all types of financial crimes, from identity fraud at account opening through to payment fraud at account funding. The company has also closed $4.6 million in seed funding, led by XYZ Ventures with participation from 11.2 Capital, Village Global, and Coinbase Ventures, after incubating as part of Sweat Equity Ventures. The funding round was also participated by over 25+ angel investors that include Adam Nash, former CEO and president of WealthFront; John Lilly, partner at Greylock; Dan Romero, former VP of Coinbase; Linda Xie, co-founder & managing director of Scalar Capital; and CEOs and operators of many Silicon Valley startups and early Coinbase, Revolut, Stripe and Google employees.

Current anti-fraud solutions were built for e-commerce platforms in the last decade, relying heavily on catching fraudsters through shopping cart analytics or shipping addresses. However, with the rise in cryptocurrencies and neobanks, previous solutions cannot adapt to new digital businesses, leading to poor fraud detection, high decline rates, and high false-positives.

"Plaid, Synapse, Marqeta and other Banking-as-a-Service platforms are leading a generational shift towards better financial services, making financial products more accessible than ever-- that is, if fraud doesn't kill them first. Sardine is the first fraud prevention as a Service (FaaS) solution truly built for digital businesses, helping companies scale and grow with zero fraud," said Soups Ranjan, Co-Founder & CEO of Sardine. "Sardine is already helping several neobanks and crypto companies take care of all their fraud needs. We have built the first zero-day fraud prevention technology to catch bad actors no matter what they do, because we look for intrinsic behavior patterns; with Sardine, a fraudster can swim but never hide."

Sardine’s single fraud detection platform combines millions of data points per customer around browser fingerprinting, mobile device attributes, network traffic, sensor data, and intrinsic user behavior to identify bad actors quickly. Using advanced AI techniques, Sardine quickly aggregates all available data. Within the time it takes to load funds into a digital wallet, it can tell fintech customers whether the user can be trusted.

Sardine’s API and SDK make it easy for development teams of all sizes to easily incorporate Sardine into their platform’s current tech stack and be up and running in less than a day. Sardine is the first product that seamlessly combines identity and transaction data for a continuous risk assessment while also allowing digital businesses to have the same millions of data points at their disposal to create transaction monitoring rules.

Sardine helps digital businesses onboard truly authentic users by providing a holistic approach to fraud detection, including:

  • Foundational Fraud Score: Sardine delivers machine-learnt fraud scores based on proprietary Device Intelligence technology and user behavior biometrics to comprehensively detect fraudsters on all fronts.
  • Enhanced Card / ACH Fraud Protection: Sardine’s AI model utilizes thousands of additional signals to cross-check the identity behind the bank account and credit card against dozens of third-party data providers and partners-- from credit bureaus, telcos, email intelligence, social media, card, and bank blacklist providers-- to ensure that the user can be trusted.
  • KYC and Identity Fraud Protection: To provide a complete picture of a user’s identity, Sardine correlates information from multiple data and intelligence sources, including credit bureaus, email, social media, and phone numbers. Further, Sardine detects usage of stolen identities based on nuances in how fraudsters enter someone else’s information vs. how good customers provide their own information.
  • Account Takeover Prevention: Sardine enables companies to detect the most sophisticated account takeovers, from credential stuffing attacks and SIM swaps to SMShing and Vishing. Sardine’s multi-factor orchestration (MFA) makes it easy for companies to offer a frictionless way to enforce any additional authentication.
  • Continuous Transaction Monitoring: Sardine allows companies to centralize their user workflow and risk management across their Fraud, Compliance, and Trust & Safety teams through 100+ Transaction monitoring rules that cover any fraud, user security, and money laundering typologies, all the while empowering teams to create new approval/rejection rules on the fly and back-test them against historical data to benchmark accuracy.

Sardine works transparently in the background and doesn’t impact user experience while still being privacy-preserving.

“At Moonpay, our mission is to enable access to cryptocurrencies to the next billion customers. To do it, we need really strong defense against a wide variety of fraud attacks, without layering the kind of friction or fear that might turn off customers who are just getting started with crypto,” said Victor Faramond, CTO of Moonpay. “Sardine provides a perfect balance, helping us detect 3x more fraud than before while also reducing friction by 2x.”

Founded by early employees from Coinbase, Revolut, PayPal, Bolt and Uber, Sardine's founding team has tackled fraud at some of the most complex industries -- cryptocurrencies, e-commerce, ride-sharing and cross-border banking. The team has witnessed some of the most spectacular fraud attacks and quickly realized that new fintech companies were left to navigate the massive burden of tackling fraud and risk on their own, so they stepped in to help.

"Sardine's team is made up of founders with deep domain expertise. They helped scale Coinbase by 1,000x, launched Revolut's US business, fought ghost-riding at Uber, and built fraud protection for PayPal," said Ross Furbini, founder and managing partner of XYZ Venture Capital. “This is why we knew that the team was so uniquely suited to super-power both established and emerging fintechs as they battle fraud to scale more quickly."

Sardine’s solution appeals to customers at various stages from the very early stage of product launch all the way to larger enterprise companies, where Sardine offers the most cutting edge identity, device and behavior signals for use in their anti-fraud systems.

About Sardine
Sardine is the first fraud prevention as a service (FaaS) solution, built from the ground-up for digital businesses and financial institutions. The company is building the next generation anti-fraud platform using cutting-edge device intelligence and behavior biometrics. Started by early employees from Uber, Coinbase, Revolut, Bolt & Paypal, Sardine believes in acting as an extension of your risk and fraud teams. Sardine's platform gives your team the superpower of real-time intelligence, machine learning at scale, and genuinely differentiating good users from high risk ones.

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Cindy Huynh
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