TrackLight Acquires Plum Identity for Government Fraud Prevention

TrackLight has acquired Plum Identity, combining identity verification, transaction analytics, and fraud investigation tools into what the companies describe as the first full-stack anti-fraud platform for government payment programs.

The acquisition brings together TrackLight’s AI-powered fraud detection and transaction monitoring with Plum Identity’s privacy-preserving identity validation engine, which processes tens of thousands of risk signals to identify stolen identities, synthetic identities, bots, and foreign fraud actors at the point of application, before payments are made.

The combined platform covers the full fraud lifecycle for government programs: identity verification at application, transaction monitoring during payment, and post-payment investigation using open-source intelligence and social network analysis. TrackLight says the two systems were built on shared infrastructure over the past two years and are already pre-integrated.

The deal reunites the team behind Pondera Solutions, a government fraud prevention company acquired by Thomson Reuters in 2020. TrackLight CEO Greg Loos served as president of Pondera, while Plum Identity CEO Jon Coss founded the company. TrackLight co-founder Linda Miller, a former Government Accountability Office veteran and former Deputy Executive Director of the Pandemic Response Accountability Committee, rounds out the leadership team.

“While at Pondera, Jon and I grew the company to the point where more than 40 percent of the country depended on us to protect their benefits programs,” Loos said. “Now we are doing it again, this time including the federal government, emerging technologies, one of the world’s top anti-fraud experts, and a laser focus on pre-payment fraud detection.”

The two companies recently secured four government contracts totaling more than $1 million in recurring revenue, including a $1.2 million federal contract with DH TECH for the Health Resources and Services Administration covering due diligence and fraud analytics.

TrackLight says the U.S. government loses more than $500 billion annually to fraud. The company’s platform combines a library of more than 3,000 fraud schemes, over one billion open-source intelligence data points, and specialized large language models to detect fraud actors before payments are issued.

Sources: National Law Review

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By the ID Tech Editorial Team