Dev/Con Detect (DCD) is a unique tech company. It offers digital ad fraud protection for companies. Online ads can be hijacked, and when hackers do this they can cost companies millions. It is illegal, of course, and DCD’s work recently led to a groundbreaking court case.
DCD turned over evidence of online ad hacking activity to law enforcement that led to a conviction and four-year sentence for money laundering. Hackers were also ordered to return the money to the company they hacked. It seems this may be the first-ever conviction for advertising fraud and money laundering through online ads as well as the first judgment to result in monetary retribution.
“We are happy about his guilty plea and conviction–a way better outcome than we would have guessed,” the client, who wished to remain anonymous, told High Ground News.
Memphis-based DCD “helps companies with a large online presence protect their sites, revenues, and customers from criminal activity.”
According to DCD’s CEO, Maggie Louie, online ads are relatively easy to hack. Hackers need to only make few changes to an ad’s code, the money that ad generates can be rerouted to them instead of the intended company. This activity resulted in digital money laundering of $9 billion in 2017 and a projected $19 billion for 2018, according to Juniper Research.
To launch DCD in 2017, Louie partnered with Josh Summitt, a Memphis native and expert in cybersecurity. The company quickly expanded to open offices in Atlanta and London.
“In its first year, the startup focused on a capital fundraising campaign to help fuel their growth. They raised just short of $1.5 million from investors across the country, including locals Start Co., Innova Memphis, and the JumpFund for female entrepreneurs, part of Launch Tennessee,” High Ground News reported.
Having been a startup company in Memphis has helped DCD become successful.
“I feel Memphis tech is on the cusp of being something really amazing … Even a few years ago I felt that many people were just biding their time to find work in other more prominent tech cities like Austin, Seattle or even Nashville. I think that tide has turned for Memphis with all the investment in the city and in part by the work done by Start Co. and ServiceMaster and many others to create a more startup friendly environment,” Summitt told High Ground News.
Memphis has been a haven for startups. Jan Bouten, a partner at early-stage venture fund Innova Memphis, explained it to Inc.: “We’re not trying to become the next Silicon Valley.”
But why is Memphis on its way to be? Many reasons, say experts. One, the city has a good foundation for new business, and entrepreneurs benefit from the many incubators, and accelerators here.
Also, Memphis companies are doing great. Take a look at FedEx, which went public in 1978 and now rakes in over $45 billion in annual revenues. “This year, the company announced that it was sponsoring the launch of a new 90-day logistics accelerator,” Inc. reported.
Memphis companies also collaborate. EPIcenter Memphis launched last year and announced a goal of creating 1,000 new entrepreneurs and 500 new companies within a decade.
On top of all these pulses, starting a company in Memphis is very affordable. “Memphis was recently ranked as the No. 9 city with the lowest startup costs by SmartAsset, a personal finance technology company,” Inc. reported.
Bravo to @devcondetect for helping the @FBI in the first digital money laundering conviction ever! $19B worth of digital advertising hijacked from publishers every year. https://t.co/z3iORjTwVk
— Newfund (@Newfund) April 28, 2018
