The Scientists Behind DataVisor Are Using AI To Spot Financial Scams Before They Begin

The Visionary Duo: Yinglian Xie and Fang Yu

In 2006, Yinglian Xie, fresh from earning her Ph.D. in computer science from Carnegie Mellon University, joined Microsoft Research’s prestigious Silicon Valley lab. Her thesis focused on identifying internet security threats by uncovering correlations between unrelated events, a concept that would later become the backbone of her entrepreneurial journey. Just weeks later, Fang Yu, who had completed her Ph.D. at the University of California, Berkeley, also arrived at the same lab. The two women, who had grown up just 30 minutes apart near Suzhou, China, quickly formed a strong bond, both personally and professionally. They shared a passion for solving complex security challenges and a vision to push the boundaries of technology.

The Birth of a Revolutionary Idea

Xie and Yu spent seven years at Microsoft Research, publishing dozens of influential papers and earning recognition within the academic community. However, they began to feel stifled by the limitations of their roles. “We had a lot of ideas, but we were always waiting for other people to pick up the idea for it to become reality,” Xie remarked. This sense of unfulfilled potential led them to embark on an entrepreneurial journey. In 2013, they founded DataVisor, a company aimed at harnessing their groundbreaking research to tackle real-world problems. The startup was initially funded with their own savings and support from their Silicon Valley network.

The Pioneers of Unsupervised Machine Learning

DataVisor’s breakthrough innovation lies in its use of unsupervised machine learning, a technique that enables algorithms to analyze unlabeled data and uncover hidden patterns without prior guidance. Unlike traditional machine learning, which is reactive and relies on historical data, DataVisor’s technology can identify emerging fraud schemes in real time. This capability is particularly valuable in today’s fast-evolving cybercrime landscape. “Pretty much all of today’s major attacks are coming from these coordinated fraud rings,” Xie explains. By detecting these networks before they can cause significant damage, DataVisor has become a critical tool for financial institutions and fintech companies.

Navigating the Journey: Challenges and Triumphs

The early years of DataVisor were not without challenges. The company initially focused on addressing abuse in tech promotions but found its market drying up as customers shifted their strategies. Recognizing the need to pivot, Xie and Yu turned their attention to the financial sector, where the demand for robust fraud detection solutions was skyrocketing. This strategic shift required significant restructuring of their product and algorithms, a process that took several years. Despite these hurdles, DataVisor secured funding from prominent investors, including Sequoia China and Brighton Park Capital, and achieved a valuation of $390 million by 2019.

Breaking Through: DataVisor’s Rise to Prominence

By 2024, DataVisor had emerged as a leader in the fintech space, with its revenue surging by 67% to $50 million. This growth earned the company a spot on Forbes’ prestigious Fintech 50 list, recognizing it as one of the most innovative startups in the industry. DataVisor’s client roster now includes major players like SoFi, Affirm, and Marqeta, all of whom rely on its advanced platform to prevent fraud and protect their customers. Unlike competitors that offer piecemeal solutions, DataVisor provides a comprehensive, end-to-end fraud prevention service, monitoring everything from user onboarding to transactions and wire transfers.

The Future of Fraud Prevention

Yinglian Xie and Fang Yu’s journey from academia to entrepreneurship is a testament to their technical brilliance, resilience, and shared vision. As cybercriminals continue to evolve their tactics, DataVisor remains at the forefront of the fight against fraud. With its unique unsupervised machine learning technology and holistic approach, the company is well-positioned to expand its impact. “Over time, we hope that gives us a pathway to become a much bigger company,” Xie says, reflecting on their aspirations. For these two trailblazing women, the best is yet to come.