Vara Security Integrates Fraud Detection and Compliance

Vara Security aims to resolve a dual problem within the financial sector, where fraud detection and compliance operate as distinct entities.

CEO Inon Shalom Ohana explained to CB Insights that financial institutions typically employ separate teams and systems for real-time fraud monitoring and subsequent compliance reporting. These processes utilize different tools, budgets, and data, with minimal shared signals between them.

Ohana characterized this split as an outcome of the software industry's historical development, leading to inefficiencies and overload for both departments. Vara Security's solution centers on treating high-quality behavioral signals as an asset, using the same data to identify scams in real time and to generate suspicious activity reports afterward.

"One engine, two outputs, one system of record," Ohana stated, summarizing the company's integrated approach. This unified strategy allows for the more effective utilization of behavioral signals, reducing wasted data and enhancing the efficiency of both fraud prevention and regulatory adherence.