The United States based blockchain startup Spring Labs is in the coming altcoin news for raising $23 million in its Seed A funding round, as a press release shared on June 12 notes. The startup will apparently use the funds to improve its blockchain based platform named Spring Protocol, developing three new fraud protection products designed to combat fraud in the auto financing industry.
As the press release notes, the new products which Spring Labs has announced are Spring Verify, Spring Defense and Spring Protect, all of which designed for identity verification, fraud mointoring/mitigation as well as loan stacking prevention, respectively.
The products launched by Spring Labs are to provide information to lenders in an anonymous way – in order to showcase the financing activities such as unsecured consumer lending, small business lending, credit card issuance as well as secured auto lending.
As the report shared in the latest cryptocurrency news also notes, auto financing fraud is on the rise and has quintupled from 2011 to 2018, becoming a relatively easier way to commit fraud as the other credit options become more secure than the auto lending options.
A lot of best cryptocurrency news sites have cited the report, estimating that the industry losses range between $4 billion and $6 billion each year – mostly because of the auto credit that is established with fake ID credentials. Spring Labs reports this in a way like a clone firm scam, saying that the scammers will typically mix in some real information along with the fake one – all in order to establish the falsified credit accounts.
What’s also notable is that among the investors in the Seed A funding round for Spring Labs were Galaxy Digital, the crypto investment bank founded by Mike Novogratz – as well as the automotive giant General Motors (GM). The latter (GM) recently announced that it was joining the Spring Founding Industry Partners (SPIF) Program in February.
The Chief Strategy Officer at GM, Mike Kanarios, has expressed his enthusiasm in joining the project with Spring Labs, stating:
“As the captive finance arm for General Motors and one of the world’s largest auto finance providers, we are continually innovating and evolving our fraud prevention and detection capabilities to better serve and protect our customers and dealers.”
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