As banks face an “invisible enemy”, London’s FALKIN raises €1.7 million to stop fraud before it starts

London-based digital safety company FALKIN has secured €1.7 million in pre-Seed funding, responding to growing regulatory and consumer pressure for proactive scam prevention. The investment highlights the increasing focus on combating digital fraud, as AI-related fraud losses in Europe have exceeded €1.3 billion. FALKIN's approach involves integrating real-time, behavior-based scam prevention directly into banking apps, aiming to shift digital safety measures earlier in the fraud lifecycle. FALKIN's platform uses AI-driven tools to analyze behavioral and digital risk signals, detecting deception early to protect customers. The funding round included participation from TriplePoint Ventures, Notion Capital, and others, along with key fintech and cyber investors. The company, founded in 2024, has already been used by bank innovation teams and tens of thousands of consumers across the US and UK. This investment follows a trend of European startups raising significant funding to combat financial crime. Other examples include Hawk (Germany) securing €51.8 million and Resistant AI (Czechia) raising €21 million, both focused on fraud detection. FALKIN's focus is on preventing scams before payments occur, which aligns with consumer demand and the need for more proactive digital safety measures. With rising fraud losses and low prosecution rates, financial institutions are facing significant challenges. FALKIN's approach, embedding intelligence within trusted banking apps, aims to provide effortless protection for users. The company's efforts are part of a broader shift towards AI-powered solutions to combat the sophisticated and evolving threat landscape of digital fraud.