CertifID, a startup specializing in fraud prevention technology for the real estate sector, has secured $20 million in funding in a round led by Arthur Ventures, valuing the company at more than double its previous worth.
Founded by Thomas Cronkright in 2017 after experiencing a $180,000 fraud loss at his real estate title agency, CertifID primarily focuses on combating wire fraud in real estate transactions. Wire fraud incidents in real estate, often involving criminals hacking into email accounts and posing as legitimate financial representatives, have surged in recent years, with more than 13,000 victims and over $213 million in losses in 2020, according to FBI data.
CertifID, co-founded by Tyler Adams, a former lead product manager at BCG’s corporate investment division, offers a platform to safeguard home buyers, sellers, and real estate businesses from wire fraud. The company provides tools such as transaction handling, insurance coverage up to $1 million per transaction, wiring instructions with optional money protection plans for buyers, and identity verification for sellers to prevent fraud attempts.
Powered by a rules-based engine and an AI model trained on vetted data, CertifID’s system evaluates various markers of fraud and continuously incorporates new data points as cybercriminals develop new tactics. While emphasizing the potential of automation and AI, CertifID also acknowledges the importance of a human-centered approach to tackling fraud and trust abuse.With this fu
nding, CertifID plans to support ongoing product development and expand its operations to meet the rising demand for its services. The company, which claims to have “several hundred” title and real estate business customers, also collaborates with federal law enforcement agencies to aid in fraud recovery efforts.
To date, CertifID has raised over $40 million in a combination of equity and debt financing, and it anticipates continued growth as the real estate industry grapples with the increasing threat of fraud.
