A fraud-detection company just got busted for committing fraud

NS8 claimed to have $62m in the bank. Actually, it was more like $28k.

September 22, 2020

Just to be safe, we’re going to need a team of fraud investigators to keep tabs on our fraud investigators.

A few months ago, the startup NS8 was riding high. The online shopping boom made its major product — analytics software that sleuths out identity theft in online purchases — more important than ever.

In June, NS8 claimed to see a 200% revenue jump, with $62m in profits in its bank account. But according to the SEC, the company only had $28k on hand.

Talk about a payday  

NS8’s CEO Adam Rogas allegedly funneled $17.5m+ out of the corporate account and into his own pockets.

Last week, authorities arrested Rogas, and NS8 laid off most of its 200+ staffers. Few in the company seem to have known about the scam.

NS8’s high-profile backers — like Lightspeed Venture Partners, who’d showered the company with a whopping $123m in funding — were also purportedly in the dark.

A season of scams 

The NS8 saga is the latest in a series of recent corporate flubs:

  • Nikola…
  • China-based Luckin Coffee was caught inflating its sales by $300m.
  • Electronic payment firm Wirecard collapsed after being wrapped up in a ~$4B global fraud.

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