Orca Fraud, a South African startup established in January by Thalia Pillay and Carla Wilby, has developed a fraud orchestration platform designed to streamline fraud prevention and compliance for banks and fintech companies through a single integration process.
The platform equips fraud analysts and compliance officers with the necessary tools to tackle a variety of fraud types effectively. Orca Fraud addresses the challenges posed by the increasing complexity of fraud, particularly in the context of emerging digital financial services such as e-wallets, mobile money, banking APIs, and cryptocurrency transactions. Pillay highlights that Orca Fraud offers specialized solutions for fraud in emerging markets by creating custom fraud models that are informed by a company’s own transactional data.
Pillay and Wilby, who have over a decade of experience in the banking and fintech sectors in South Africa, recognized the need for modular and efficient fraud and compliance tools. They observed the limitations of existing tools, including lengthy integration times, inflexibility, and high costs, which often resulted in high false positive rates and inefficiencies, particularly in emerging markets where fraud patterns and user profiles may differ significantly.
Orca Fraud distinguishes itself from established fraud prevention companies like Sift, Seon, Sardine, and ComplyAdvantage, as well as local competitors such as Smile ID, by focusing on the entire user journey rather than just the KYC or onboarding process. Pillay emphasizes that monitoring user behavior is an ongoing necessity rather than a one-time event.
Initially bootstrapped, Orca Fraud successfully raised a US$550,000 pre-seed funding round last month, led by Norrsken22 and supported by First Circle Capital, Musha Ventures, Kara Ventures, as well as angel investors and personal contacts. The funding enables Orca Fraud to concentrate on product development and client collaboration, offering free pilots and design partnerships to refine their product during the early stages where revenue may not yet be generated.
The response to Orca Fraud’s launch has been positive, with companies from various industries reaching out to share their experiences with fraud. While the startup is currently focused on the South African market, known for its diverse types of fraud, expansion to other markets is not off the table. Pillay notes that following their clients into new markets is a strategic approach that allows Orca Fraud to support businesses in mitigating fraud risks associated with new product launches.
Orca Fraud plans to transition from free trials to a paid model once they can demonstrate significant value to their clients. Data collection from clients is currently a priority, as it is essential for refining their machine learning models. Pillay acknowledges that in Africa, access to data can be challenging, and the willingness to pay for non-essential tools is low. She asserts that true innovation lies not in buzzwords but in effectively solving real-world problems, and for Orca Fraud, that means providing businesses with cost-effective tools to combat fraud.
