Deduce

About Deduce

Deduce is a cybersecurity firm specializing in protection against AI-generated identity fraud. Founded in 2019 by Ari Jacoby, who serves as the CEO, the company emerged from stealth in 2020. Jacoby, a serial entrepreneur with successful exits from companies like Circulate and Voicestar, drew upon his extensive background in AdTech, data, and security to establish Deduce. The founders' experience battling bots in the ad-tech industry revealed a need for a more coordinated approach to security, which led to the creation of the Deduce platform.

The company's core offering is the Deduce Identity Network, a large, privacy-compliant data coalition of over 150,000 websites that analyzes more than 1.5 billion authenticated online events daily. This network powers the Deduce Identity Graph, which leverages multi-contextual intelligence to identify suspicious patterns and behavior associated with AI-generated synthetic identities, often referred to as "SuperSynthetics". These are highly realistic fake identities, complete with deepfake biometrics and transactional histories, designed to bypass traditional fraud detection systems. Deduce's platform is designed to unmask these fraudulent accounts during the new account opening process and to identify "sleeper" synthetics already present in customer databases. Its services are delivered to clients via an API that integrates with their existing fraud-prevention stacks.

Deduce primarily serves industries such as financial services, fintech, and e-commerce, offering them tools to combat account takeover and new account fraud. The business model provides these tools, previously only accessible to tech giants, to companies of various sizes. Its product suite includes "Deduce Identity Insights," which provides real-time data for authenticating login attempts, and "Deduce Customer Alerts," which notifies end-users of suspicious activity via text or email. The company has secured a total of $26.3 million in funding over several rounds, including a $9 million round in September 2023 led by Freestyle Capital, to scale its solutions. In early 2025, Deduce was acquired by Cheq, a go-to-market security company, to integrate its identity fraud prevention technology into Cheq's platform.