Antifraud technology provider Arkose Labs has adapted a popular business model first applied to chargebacks for credential stuffing. In the early 2010s, a number of antifraud startups disrupted the industry by offering to indemnify their customers by backing their technology with a guarantee: if an approved transaction turned out to be fraudulent, the vendor would cover the costs and fees associated with the fraud and the chargeback.
San Francisco-based Arkose Labs has become the first to offer a similar guarantee for costs associated with credential stuffing attacks. The guarantee covers up to $1 million in costs for legal consultation, forensic services, notification expenses, identity theft and credit monitoring that retailers or other Arkose customers could incur after a credential stuffing attack.
“Arkose Labs offers the industry’s first commercial warranty to support our customers with up to $1 million in response expenses if we fail to defeat an automated attack,” said Kevin Gosschalk, the company's CEO. “We want to show our commitment to customers by sharing a portion of responsibility with regard to attack mitigation.”
According to the FBI’s Cyber Division, credential stuffing attacks can cost the average business upwards of $6 million per year.
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