Earlier this week T Stamp Inc (NASDAQ:IDAI, EURONEXT:AIID) (dba Trust Stamp) struck a new partnership with Botdoc to integrate its low-code Orchestration Platform within Botdoc's Connect product.
In this interview with Proactive, Trust Stamp president Andrew Gowasack discussed the company's new partnership, aimed at combating the 98% rise in synthetic identity fraud in the automotive industry. Gowasack was joined by BotDoc CEO Karl Falk, who highlighted the importance of their end-to-end encryption technology in addressing increasing cybersecurity threats.
Proactive: Andrew, could you talk about the automotive industry, particularly the security lapses within it that many people might be unfamiliar with?"
Andrew Gowasack (AG): It's been really interesting. As we've been exploring new industries to enter, the automotive sector really stood out. Like many industries undergoing digital transformation, the car-buying process is increasingly moving online, leading to a rise in fraud. For instance, in automotive lending, there's been a 98% growth in synthetic identity fraud attempts. We saw this as a clear signal that the sector needs innovative identity solutions like Trust Stamp.
This leads to the partnership with Botdoc. Can you tell me about the reasoning behind your company wanting to work with Bodoc?
AG: Sure. There are two main reasons for this partnership. First, I was really excited to discuss it because, as I mentioned in my H1 update, Botdoc provides Trust Stamp with simplified integration, allowing us to access new industries and reach customers and prospects without expanding our headcount.
Second, I'm enthusiastic about partnering with Botdoc because I have known Karl and his team for several years, and we share a strong commitment to prioritizing security and privacy. Over the years, we've periodically met, and Karl has shared stories about rising fraud rates. One story that particularly caught my attention was about fraudsters using Telegram to advertise their fake ID services. They claimed that for $500 and a headshot with a gray or white background, they could deliver any car under $60,000 to your home address.
Seeing how fraudsters are collaborating to bypass conventional fraud protections convinced me that we need to work together to combat these threats.
Karl, could you tell me a bit about the origins of Botdoc?
Karl Falk (KF): We’re a cybersecurity software company, and Botdoc was actually created somewhat by accident. We were initially working on something entirely different when we discovered something unique in our work. A few years ago, we decided to pivot the entire company to focus on Botdoc.
Botdoc provides end-to-end encryption for communication between two people or between a system and a person, eliminating the need for PINs, passwords, and logins—making the process more user-friendly and secure.
We originally grew up in the financial space, where we first connected with Andrew and his team. With the new financial and FTC regulations impacting the automotive industry, we were pulled into that sector a couple of years ago as they sought to improve their cybersecurity measures.
And Karl, what sort of growth is the company seeing?
KF: Last year, we saw over 300% growth in revenue, much of which came from the automotive sector due to the increased focus in that area. In fact, just in the past month, one of the largest software providers, CDK Global, was offline for nearly three weeks due to a ransomware attack.
The demand for our software has significantly increased, with a 20-fold rise over the past 12 months. This growth not only reflects the strong demand for our technology but also highlights the automotive industry’s heightened interest in achieving both security and compliance.
Did you feel that Trust Stamp's technology was a perfect fit for your goals in this particular industry?
KF: Yes, we did. While there are established technologies in the automotive industry that have been around for many years and are effective, they haven't evolved with the changing times. When Andrew and I first connected at a conference, he expressed a strong interest in the automotive industry. This initial conversation laid the groundwork for the new partnership that developed from there.
Andrew, these partnerships are crucial because, while your technology is very strong, combining it with complementary technologies can enhance its effectiveness. Given that criminals are becoming more sophisticated, how important is it for technology to advance in order to keep up with these threats?
AG: Absolutely. While we strive to improve security, it’s equally critical to ensure that privacy is enhanced as well. As Karl mentioned, they provide end-to-end encryption, and Trust Stamp is a privacy-first company. We believe that security must go hand-in-hand with privacy, which is a key reason we decided to partner together.
Quotes have been lightly edited for style and clarity