Mexico-based digital fraud prevention and identity verification startup, Trully has raised a $4.1 million seed round led by Costanoa Ventures.

According to this report, the financial cost of fraud in 2021 was $5.38 trillion worldwide. In Latin America, 1 in 5 online transactions is rejected due to possible digital fraud.

In the region, customer identity verification remains the main challenge to reduce fraud in digital channels, as 44% of frauds carried out were related to this problem.

In the face of these challenges, Fernando González Paulin, Carl W. Handlin, and Eric Balderrama, founded Trully to improve the authentication of KYC (Know Your Customer) systems and prevent identity theft and financial fraud through facial recognition using machine learning to obtain more accurate data.

Using Trully's proprietary technology, companies can detect fraud individually and power a system to protect an entire network of companies.

Trully’s solution is currently in the testing phase with multiple financial technology startups. In this first stage, it is aimed at fintech and e-commerce companies.

Trully will use this funding to improve its technology and strengthen operations in Mexico, where it will be recruiting talent in engineering and development.