SpyCloud Raises $30m in Funding to Tackle Surge in Online Fraud During #COVID19

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Cybersecurity firm SpyCloud has raised $30m from a Series C round of funding as it looks to further develop its fraud detection and prevention capabilities.

The new investment was led by Centana Growth Partners and included contributions from M12 (Microsoft’s venture fund), Altos Ventures, Silverton Partners and March Capital Partners.

The announcement follows a surge in online scams during the COVID-19 crisis, with cyber-criminals exploiting the increasing reliance on internet services during the lockdown. SpyCloud revealed that in the early days of the pandemic, it uncovered 139,000 new web domains related to the virus. There have also been multiple new scams carried out by fraudsters, including posing as government agencies to launch phishing attacks and undertaking credential stuffing attacks on food delivery apps.

The security company therefore wants to expand its product and engineering teams and create new technologies to protect against these kinds of activities.

“Criminals work together to steal information and find creative ways to monetize it. As a result, even the most careful and sophisticated organizations are vulnerable,” explained Ted Ross, SpyCloud CEO and co-founder. “SpyCloud will continue to pursue new and innovative ways to stay ahead of criminals and provide solutions that make the internet a safer place for individuals and businesses.”

SpyCloud added that the takeover of business accounts to commit fraud via stolen employee and customer credentials is one of the most common methods used by cyber-criminals, and this threat has grown as a result of the rise in home working during the pandemic.

Eric Byunn, partner at Centana Growth Partners who has joined SpyCloud’s board, commented: “With so many people now working from home and multiple family members sharing devices with a mix of personal and professional applications, attack surfaces have increased significantly. Criminals are certainly taking full advantage of these new opportunities to exploit your employees and their family members. SpyCloud is dedicated to protecting everyone from attacks and preventing them before they happen.”

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