Spring Labs Secures $23 Million Led by General Motors (GM) For Its Verify, Defense and Protect Blockchain Protocols
- Spring Labs had a successful Seed A funding round, which was worth $23 million.
- The company will be launching three fraud protection products to help with financing activities.
Spring Labs is a blockchain startup in the United States, and they were recently the recipient of $23 million in a Seed A funding round. Their press release, which the company put out on June 12th, shows that Spring Labs is planning to use the funds towards a new platform that they’ll be calling Spring Protocol, while working on three fraud protection products that cater to the auto financing sector.
The new products will be named Spring Verify, Spring Defense, and Spring Protect, and they are created for identity verification, fraud monitoring and mitigation, and loan stacking prevention, respectively. The products are meant to offer lenders anonymous information, helping with financing activities like secured auto lending or credit card issuance.
In the press release, the company explains that auto financing fraud has risen by five times over from 2011 to 2018, which makes it even easier to commit fraud as the security rises in other auto lending options. In fact, the report states that there is up to $6 billion lost annually, due to the fake ID credentials being used in auto credit establishment. Spring Labs says that these scammers work a lot like a clone firm scam, using a little bit of truthful information with the false, making the credit account appear legitimate.
Galaxy Digital was one of the investors involved in the Seed A funding round, as well as General Motors (GM). GM originally announced that they would be joining Spring Founding Industry Partners (SPIF) Program in February. This project was originally launched with Spring Labs, hoping to offer better security with their collaboration and ongoing research.
Mike Kanarious, the chief strategy officer at GM, spoke about his company’s decision to partner up, saying:
“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.”