AUSTIN, Texas – March 28, 2018 – SpyCloud, the leader in account takeover (ATO) prevention, announced today it has closed a $5 million Series A funding round from existing investors Silverton Partners and March Capital Partners.
SpyCloud prevents ATO from being perpetrated by the most sophisticated cybercriminals. SpyCloud’s platform proactively identifies exposed employee and customer accounts at the earliest possible juncture, empowering businesses to protect those accounts before criminals can act.
SpyCloud security researchers have used proprietary collection techniques to amass the industry’s largest and highest quality repository of exposed accounts, leaked passwords and personally identifiable information (PII), with more than 32 billion current assets and billions of new assets being added every month. Last year, Verizon reported that 81 percent of hacking-related breaches leveraged either stolen or weak passwords. And in July 2017, Forrester estimated that ATO would cause at least $6.5 billion to $7 billion in annual financial losses across industries.
Enterprises use SpyCloud’s data and fully-automated tools to detect exposures and remediateemployee accounts that have been impacted, by forcing password changes before those accounts can be used in nefarious ways and surfacing compromised devices that are infected with keyloggers or malware. Service providers take similar advantage of SpyCloud’s data repository to detect and prevent their online customer accounts from ATO and resulting fraud or PII theft, making use of SpyCloud’s developer-friendly API. Enterprise security teams also tap into SpyCloud’s data for fraud investigation purposes.
Through a unique approach to underground data collection and an exact match prevention solution, SpyCloud identifies exposed accounts that would typically fall through the cracks with other solutions and does so before accounts and passwords are posted on criminal forums and dark markets. Furthermore, SpyCloud provides protection of employees’ personal credentials, keeping them safe at home as well as at work.
“There isn’t a company in the world that doesn’t run the constant risk of having its employee or customer accounts exposed, and that leads to a host of other issues,” said Ted Ross, CEO and co-founder of SpyCloud. “The only chance businesses stand against these increasingly-proficient criminals is to know as soon as possible which accounts have been exposed and to take preventative measures well before credentials make it onto the dark web.”
Since emerging from stealth mode in June 2017, SpyCloud has already protected tens of millions of employee and customer accounts for notable companies across the finance, retail, healthcare and technology industries.
SpyCloud will use the new infusion of funding to rapidly grow by accelerating product development, conducting deeper security research, continuing to expand its database of assets, and hiring additional team members.
“The continued customer traction and growth SpyCloud has achieved is a testament to both the immediate demand for its technology and the unparalleled collective experience of the team,” said Kip McClanahan, general partner of Silverton Partners. “We look forward to helping them capitalize on those strengths to make ATO prevention universal table stakes in the enterprise.”
“SpyCloud’s arrival has filled a devastating gap in the enterprise security realm,” said Jim Armstrong, partner and co-founder of March Capital Partners. “When millions of accounts and billions of dollars are at risk and under attack daily, companies can’t afford to sit idle. They need to arm themselves with every piece of technology, expertise, and data that can keep their assets safe.”
Following its founding in 2016, SpyCloud raised a $2.5 million seed funding round from Silverton Partners and March Capital Partners. In 2017, the company won the NATO Communications and Information (NCI) Agency Defence Innovation Challenge and Best of Show at FinovateFall 2017.
For more information and to check your company’s ATO exposure, visit https://spycloud.com/.