6lock Launches Secured Payments Platform for Private Equity Firms

The invite-only platform is designed to give Private Equity firms the trust and transparency lacking with current manual wire transfers as phishing and fraud instances grow.

AUSTIN, Texas, Sept. 24, 2024 /PRNewswire/ -- 6lock, a secured payments platform built for private equity firms, announced they have begun onboarding new clients for funds transfers. The announcement comes at a time when firms have grown frustrated and anxious from both the lack of clarity and inadequate security for funds transfer.

"Time kills deals" is a modern maxim, and a present concern for firms looking to deploy funding on tight timelines. But private equity firms are increasingly dealing with a second existential threat to their deals and their businesses - fraud.

A recent report indicated that financial firms are 300 times more likely to be targeted for cyberattack. PE firms, beholden to quick M&A funding timelines, are at an even greater risk, since these funding requirements often leave time for only light security diligence.

"I click and pray," said one anonymous firm partner.

Growing concern over the current process is valid - investment related fraud is rapidly increasing over the last several years, amounting to nearly $50B in 2023.

"Private equity firms are some of the most important drivers of innovative and economic growth, and yet they're scared to death every time they have to make a transfer," said 6lock co-founder Todd Sorrel. "They know it's not sustainable, but there hasn't been a better option for them until now."

Sorrel and his co-founders created 6lock after witnessing the anxiety that often accompanies fund transfers.

"You have an acquisition, distribution, service provider payment or a capital call, and for many groups, the next steps are a rapid volley of emails and sharing of spreadsheets with extremely sensitive data," said Peter Steppe, 6lock's Chief Security Officer. "That's certainly not secure. But then comes the actual wire transfer, where you receive no confirmation that the funds have reached the right account until the recipient tells you."

6lock was designed to solve the frustration and angst that follows modern funds transfer for Private Equity firms, with a security-first, invite-only platform that gives visibility to funds transfers in real-time. After users are invited and verified, the platform continuously monitors the credentials of each member of their funding network, ensuring each person is fully attested and authorized.

"No one can send or receive funds if they aren't verified either as an individual or as a business or as both. A payment process without strong Two Factor Authentication and Enhanced Identity Verification with liveness is left open to multiple attack vectors, including the deep fakes and fraudulent IDs," said Steppe. "This isn't just a payment system orchestrated for 'more secure email,' which has been proven to be ineffective and time-consuming. Instead, the entire payment process is automated and secured from end-to-end."

Beyond security, 6lock's platform also aims to solve the communication and notification gaps associated with wire transfers. The product dashboard features a birds-eye view of every transaction with real-time funding notifications and historicals.

"The reality is that payment fraud is getting more advanced, yet private equity firms are stuck in archaic payment processes that are both burdensome and insecure in handling banking and personally identifiable information," said Steppe. "Businesses are generally reactive to present day threats, and at that point, it's usually too late."

A recent survey of PE firms found that only 23% had a fully compliant cybersecurity plan in place. At the time of the survey, one-third of those surveyed had already experienced an ID-theft scam. Wire fraud within Private Equity is also dramatically increasing.

"Private Equity Firms overly rely on sharing routing and account numbers," said Steppe. "This exposure has resulted in cyber-attack and fraud. With 6lock, everyone is invited, authenticated, verified, attested, and all sensitive bank account information is never shared, which creates 6lock's chain of trust."

"Firms move funds to partners and companies of all types and sizes," added Sorrel. "These transactions are only as secure as the weakest link. We fix that."

6lock is now available to Private Equity Firms looking to avoid fraud, and secure their important payments.

Media Contact:
Todd Sorrel
5125854545
[email protected] 

SOURCE 6lock