White Ops Secures $7 Million in Series A Funding
NEW YORK, NY – White Ops, a pioneer in online fraud detection, today announced that it has secured $7 million in investment from new investors Paladin Capital Group and Grotech Ventures. Joining the White Ops Board of Directors are Philip Eliot from Paladin and Steve Fredrick from Grotech. Fueling White Ops’ ability to extend its leadership in combating online advertising fraud, the growth capital will also help to fund the expansion of White Ops’ bot detection innovations into enterprise customers to combat other forms of bot-driven crime such as man-in-the-browser financial fraud, e-commerce fraud and automated attacks on websites such as Distributed Denial of Service (DDoS).
A recent study found that corporations suffer bot infections at least once every 24 hours. Moreover, the percentage of organizations with active bot infections increased to 73 percent from 63 percent year-over-year. The same study noted that 77 percent of the bots were active, yet undetected for more than a month. The ability for bots to hide in plain sight and convincingly mimic user behavior, is a key reason for the success of multiple major criminal markets. The most profitable of these is online ad fraud. Industry experts estimate that at least 22 percent of digital display advertising traffic worldwide is driven by bots, resulting in an estimated $6-10 billion in losses each year.
“For the past seven years, Paladin has actively tracked and invested in security solutions that address automated attacks,” said Eliot. “The security pedigree of the White Ops team has enabled the company to take this fundamental business problem existing across multiple markets and develop a way not only to stop the threat but halt its continued evolution. The initial application of the White Ops solution to the ad fraud industry is unique. Unlike traditional security where missing a single infection can be as damaging as missing 50 percent of the infections, the ad fraud market sees incremental value for incremental gain. A reduction of fraud by 10 percent results in a savings of 10 percent this is a compelling ROI for customers.”