Shape Security hits $1B valuation with $51M Series F – gpgmail


Anti-fraud startup Shape Security has tipped over the $1 billion valuation mark following its latest Series F round of $51 million.

The Mountain View, Calif.-based company announced the fundraise Thursday, bringing the total amount of outside investment to $183 million since the company debuted in 2011.

C5 Capital led the round, along with several other new and returning investors, including Kleiner Perkins, HPE Growth and Norwest Ventures Partners.

Shape Security protects companies against automated and imitation attacks, which often employ bots to break into networks using stolen or reused credentials. Shape uses artificial intelligence to discern bots from ordinary users by comparing known information such as a user’s location, and collected data, like mouse movements, to shut down attempted automated logins in real time.

The company said it now protects against two billion fraudulent logins daily.

C5 managing partner André Pienaar said he believes Shape will become the “definitive” anti-fraud platform for the world’s largest companies.

“While we expect a strong financial return, we also believe that we can bring Shape’s platform into many of the leading companies in Europe who look to us for strategic ideas that benefit the entire value-chain where B2C applications are used,” Pienaar told gpgmail.

Shape’s chief executive Derek Smith said the $51 million injection will go toward the company’s international expansion and product development — particularly the capabilities of its AI system.

He added that Shape was preparing for an IPO.

Correction: A draft of the company’s funding news said Shape had raised $173 million to date. The company said this was a typo and has in fact raised $183 million.


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Telegram fixes bug that failed to delete ‘unsent’ photos and videos – gpgmail


Mobile messaging app Telegram has fixed a bug allowing users to recover photos and videos “unsent” by other people.

Telegram, which has more than 100 million users, has an ephemeral messaging feature that allows users to “unsend” sent messages from other people’s inboxes, such as when a message is sent by mistake.

But one security researcher, Dhiraj Mishra, who found the privacy issue and shared his findings exclusively with gpgmail, said although Telegram was removing the messages from a user’s device, any sent photos or video would still be stored on the user’s phone.

The researcher found other messaging apps, like WhatsApp, had the same ephemeral “unsend” feature, but when tested, deleted both message and content.

Mishra said the Android version of Telegram would permanently store photos and videos in the device’s internal storage.

“This works perfectly in groups as well,” he told gpgmail. “If you have a Telegram group of 100,000 members and you send a media message by mistake and you delete it, it only gets deleted from the chat but will remain in media storage of all 100,000 members,” he said.

It’s not known if Telegram users have been affected by the privacy issue. But recently we reported several cases of visa holders who have been denied entry to the U.S. for content on their phones sent by other people.

After gpgmail reached out, Telegram fixed the vulnerability. Mishra received €2,500 from the bug bounty for discovering and disclosing the vulnerability.

A spokesperson for Telegram confirmed the bug fix had rolled on September 5.


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