FinCrime Central - Latest AML/CFT News & Vendor Directory

Sardine AI Secures $70M Series C Funding to Revolutionize Fraud Prevention

In an era where financial transactions happen in milliseconds and artificial intelligence (AI) is being weaponized for fraud, trust is deteriorating at an unprecedented rate. The numbers paint a grim picture: in 2023, scammers stole over $1 trillion worldwide, leaving businesses and individuals grappling with the financial and emotional toll.

The accelerating pace of payments, coupled with increasingly sophisticated fraud techniques, has widened the gap between security measures and emerging threats. Legacy systems and fragmented point solutions have struggled to keep up, leaving financial institutions overwhelmed by compliance burdens and an ever-growing wave of fraud attempts.

Sardine AI, founded in 2020 by a team of former risk and compliance leaders from Coinbase, Revolut, Uber, and PayPal, was built to tackle these challenges head-on. With a mission to create a comprehensive and AI-powered risk management platform, the company has secured $70 million in Series C funding, led by Activant Capital, bringing its total raised capital to $145 million.

Financial crime is evolving rapidly, and traditional fraud prevention mechanisms are struggling to adapt. Compliance costs continue to rise, consuming 10-20% of operational budgets for many financial firms. Meanwhile, real-time payments leave minimal room for fraud detection before funds are transferred, exacerbating the risk exposure.

Legacy fraud detection systems rely heavily on rule-based approaches and static identity verification methods. These outdated techniques are no match for deepfake technology, synthetic identities, and industrial-scale social engineering attacks. Fraud analysts find themselves drowning in alert volumes, with each verification process often requiring 30 minutes or more of manual investigation.

Sardine AI recognized that a paradigm shift was needed—one that embraces AI-powered automation, behavioral intelligence, and interconnected risk assessment. By unifying fraud detection, AML compliance, and credit risk evaluation, Sardine AI is setting a new standard in financial security.

A Data-Driven Approach to Risk Management

Sardine AI’s success is built on three key principles:

All risk problems are data problems – Fraud detection must go beyond traditional identity verification and incorporate behavioral analytics to distinguish legitimate users from malicious actors.
User behavior is the most reliable fraud indicator – Deepfake technology can forge identities, but fraudulent behavior patterns remain detectable.
Fraud, compliance, and credit risk are interconnected – Siloed risk management creates blind spots. A unified approach enhances security and operational efficiency.

This foundation has enabled Sardine AI to develop an AI-enhanced risk management platform that profiles over 2.2 billion devices globally and supports over 300 enterprises across 70 countries.

Real-World Impact and Business Growth

The past year has marked significant milestones for Sardine AI:

130% annual recurring revenue (ARR) growth
Doubled customer base
Launched AI-driven automation for fraud and compliance teams

The platform’s impact on financial institutions speaks volumes:

A Tier-1 bank reduced wire fraud by 42%
A commercial neobank cut dispute volume by 93.75% and chargeback losses by 70%
An expense management firm lowered ACH fraud by 60%
A cross-border remittance provider improved fraud detection accuracy from 15% to 70%, reducing manual reviews by 85%

The Sardine AI Advantage: AI-Driven Risk Management

Sardine AI’s competitive edge stems from three core strengths:

Behavioral intelligence – Analyzing user interactions at a granular level, detecting fraudsters by how they behave rather than relying solely on static identifiers.
Unified risk platform – A single, integrated solution that combines fraud prevention, AML compliance, and credit risk evaluation.
Network effects – With billions of data points, Sardine AI’s consortium model enhances fraud detection across industries, preventing repeat offenders from exploiting gaps in different financial ecosystems.

A notable example is GoDaddy, which leveraged Sardine AI’s platform to consolidate risk management, improving fraud detection and streamlining compliance. This integration reduced rule deployment times from days to hours and significantly lowered reliance on engineering resources.

AI Agents: The Future of Fraud Prevention

Sardine AI is pioneering the use of AI agents to enhance fraud detection and compliance operations. These agents automate high-volume tasks while maintaining full audit trails for regulatory transparency.

KYC Agent

Automates complex onboarding processes, resolving document mismatches and inconsistencies to reduce onboarding times and boost customer conversion rates. Current deployments have achieved 88% auto-resolution rates.

Sanctions Screening Agent

Enhances compliance efficiency by reviewing politically exposed persons (PEP) and adverse media alerts while maintaining transparency with regulators. The AI system provides recommendations that analysts can validate, ensuring high accuracy.

Merchant Risk Agent

Continuously assesses merchants, detecting changes in business models that signal potential fraud. This agent has proven effective in identifying hidden high-risk transactions and preventing transaction laundering.

Disputes Agent

Automates chargeback dispute processes, preparing evidence packages that meet card processor requirements. Clients have reported significant reductions in manual processing time and higher chargeback win rates.

Scaling the Future of Financial Security

With its latest funding round, Sardine AI aims to further enhance its AI capabilities and expand its global reach. Key focus areas include:

AI-powered fraud detection – Increasing automation to improve fraud resolution times and reduce financial losses.
FRAML (Fraud and AML) convergence – Unifying fraud prevention and compliance functions for a seamless risk management experience.
Real-time payment security – Enhancing transaction monitoring for instant payments and ACH transfers.
Countering AI-driven fraud – Identifying AI-generated attacks through behavioral biometrics and advanced analytics.
Strengthening B2B payment security – Addressing rising fraud threats in corporate transactions and wire transfers.

Conclusion: A New Era in Financial Trust

Sardine AI’s $70M Series C funding marks a pivotal moment in the fight against financial crime. By leveraging AI-driven automation and behavioral analytics, the company is bridging the trust gap in financial services. As fraudsters evolve, Sardine AI is ensuring that businesses stay ahead, securing transactions and protecting customers from emerging threats.