Israeli cybersecurity startup Memcyco secures $10M to protect brands and businesses from brandjacking fraud
Cybercrime is on the rise, with attacks becoming increasingly common and sophisticated with damages predicted to reach $10.5 trillion annually by 2025. To date, ordinary internet users who browse websites and communicate online are becoming victims of traps and scams, as they lack reliable means to determine if the businesses they encounter are genuine or fake.
Despite significant efforts in end-user authentication, the industry still lacks a comprehensive solution that addresses every interaction point between users and organizations. That’s why one Israeli cybersecurity startup is on a mission to provide digital trust technologies to empower brands in combating online brand impersonation fraud and preventing fraud damage to businesses and their clients.
Enter Memcyco, a cybersecurity authenticity platform that provides real-time brandjacking protection of businesses’ digital assets and their end-users from phishing attacks. Its solution increases customer digital trust, improves brand reputation, and reduces the financial impact
Today, Memcyco announced it has closed a $10 million seed funding round led by Capri Ventures and Venture Guides to grow its operations.
Founded in 2021 by Eli Mashiah, Gideon Hazam, Israel Mazin, and Ori Mazin, Memcyco offers a cutting-edge agentless technology called Proof of Source Authenticity (PoSA). This innovative solution delivers real-time detection and Zero Day protection, effectively identifying attacks at their earliest stages.
PoSA provides brands with comprehensive information about attempted attack sessions, ensuring complete visibility into the nature of the threat. It also pioneers the issuance of a Red Alert to users when they encounter a spoofed website associated with the brand. Leveraging artificial intelligence, PoSA™ analyzes behavioral patterns to detect and promptly notify organizations of any suspicious activity.
Brandjacking stands out as one of the most prevalent cyberattacks worldwide. In 2022 alone, imposter scams caused consumers to collectively lose over $2.6 billion, as reported by the U.S. FTC Consumer Sentinel Network’s data book. This form of attack, also known as website impersonation or “brandjacking,” lures users to counterfeit versions of legitimate brand websites. The goal is to deceive them into divulging personal and financial information, leading to identity theft and financial loss.
Additionally, PoSA incorporates a digital watermark that prominently displays on the brand’s legitimate website, reassuring customers of its authenticity. Brands can seamlessly integrate this watermark and allow users to personalize it with a secret element, making it instantly recognizable and virtually impossible to forge. This fosters a secure environment and enhances the trust and confidence customers place in the brand’s digital presence.
By leveraging Memcyco’s solutions, brands can effectively mitigate damages suffered by both themselves and their customers. This approach reduces the need for extensive user education, curtails the negative snowball effect that hinders user engagement with digital properties, and ultimately enhances brand reputation and user trust.
“At Memcyco, we have introduced a new paradigm for preventing website impersonation by providing multiple layers of protection for companies and their customers,” said Israel Mazin, CEO and co-founder of Memcyco. “This investment from such experienced leaders in cyber security delivers a strong vote of confidence in Memcyco’s ability to deliver a more secure and trustworthy digital ecosystem.”
“Everyone knows someone who has fallen victim to a phishing-based brandjacking scam,” said Alex Pinchev, Founder and Managing Partner at Capri Ventures. “Memcyco is the first company to provide a real-time solution to that problem, while existing approaches are mostly after-the-fact and leave organizations not knowing which users fell victim to the attack.”
“Memcyco’s leadership team is fully committed to protecting banks, eCommerce, and other customers whose businesses depend on the trust and goodwill of their customers. We believe they will build the company to become the leading innovator in digital trust,” Ben Nye, Managing Partner at Venture Guides, added.