A South African startup, Orca Fraud, has raised $550,000 in its pre-seed funding round led by Norrsken22. Founded just four months ago by Thalia Pillay and Carla Wilby, Orca aims to tackle the increasing fraud in emerging markets, driven by new payment methods like mobile money and e-wallets.
Over the past five years, fraud in South Africa has surged, affecting not only individuals but also government institutions and banks. In 2021, South Africa was the most cyber-attacked country in Africa and the third most attacked in the world, according to Interpol. Between 2018 and 2022, fraud incidents grew by 600%, reports the Southern African Fraud Prevention Service (SAFPS).
Orca, based in Cape Town, plans to use the funds to develop fraud prevention tools tailored for emerging markets and to expand its all-female team. Their solutions will help financial institutions across Africa handle the rising number of fraud cases, which have become more complex with the adoption of new payment technologies.
Recent attacks, like the ransomware hit on the Development Bank of Southern Africa in May 2023, highlight the urgency of effective fraud prevention. Similar incidents have affected the South African Reserve Bank and the Central Bank of Lesotho.
Orca’s team has consulted with over 150 fraud professionals and fintech founders to understand the current landscape and design targeted solutions. Norrsken22’s Nivesh Pather emphasised the need for bespoke tools designed for the unique challenges of African markets, rather than generic global solutions.
The all-female founding team is notable, as only 1% of funding for African tech startups from 2019 to 2022 went to female-only founded teams. Thalia Pillay, Orca’s CEO, expressed enthusiasm about their strategic investors, who bring valuable experience in B2B and fraud prevention sectors.
Orca Fraud is set to make a significant impact on financial security in Africa by offering effective and affordable cybersecurity solutions, addressing the growing threat of fraud in the region.
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