Fintech entrepreneur Colin Porter is looking to tackle the growing problem of invoice payment fraud with a new B2B SaaS platform PayOK.
Porter, founder credit information bureau CreditorWatch and more recently Avenue Bank, which received its Restricted ADI bank licence, last month, has raised $3 million in a Series A for PayOk at a $10 million valuation.
The round was led by Nightingale Partners.
Porter founded the fintech this year as a secure, safe and easy-to-use platform that provides ongoing protection against internal and external fraud, including sophisticated cyber attacks.
PayOK instantly verifies bank account information so that businesses can pay with confidence.
The growing problem for companies paying invoices is a fraud scam known as Business Email Compromise (BEC) or payment redirection, where cybercriminals impersonate suppliers and change the business bank account details as their own. Australian businesses lost $132 million to BEC in 2019, according to the ACCC.
In the last 12 months, more than 3,300 BEC incidents were reported to the Australian Cyber Security Centre and police, with almost half resulting in financial loss.
Porter said bank payment fraud is a growing risk.
“Every business regardless of size, location or industry can fall victim to bank payment redirection, internal fraud and cybercrime, he said.
“I’m applying the same expertise from founding a credit bureau that has helped thousands of businesses get paid and reduce their credit risk, with internal banking knowledge to address payment redirection scams that are internationally becoming a critical issue.
PayOK intends to become an accredited data recipient under the Consumer Data Right (CDR) as part of his startup’s expansion.
Lindsay Phillips, Chairman and Managing Director of Nightingale Partners says “Colin acts on opportunity and has a proven track record of building innovative teams that have disrupted duopolies and regulated markets.”
“It’s evident that payment fraud is under-reported, in many cases due to embarrassment. Businesses should not go on hoping that it doesn’t happen again, PayOK will provide better solutions for ongoing protection that will reduce risk and mitigate fraud at large.”