As financial services become increasingly digital, fraud is evolving just as rapidly. Banks, fintechs and NBFCs are dealing with sophisticated scams, synthetic identities, social engineering and increasingly AI-enabled fraud. In a recent episode of The Startup Caffe, Arvinder Singla, founder of Sign3, shared his journey from startups to building an AI-native fraud prevention and risk intelligence company.

From Startups to Solving a Real-World Problem

Singla spent around eight years working across different startups before building Sign3. One of his biggest takeaways was that entrepreneurship involves far more than the visible success stories.

According to him, there is “no glamour” in the startup journey. Founders need to remain mentally strong while dealing with uncertainty, pressure and the impact their decisions can have on their families and teams.

His own startup journey was influenced by a recurring observation: while financial services were becoming digital, many decision-making systems were still dependent on traditional rules and legacy infrastructure.

Adding Intelligence to Financial Decisions

Sign3 was built around the idea of bringing an intelligence layer to financial decision-making. Its technology helps banks and financial institutions identify potentially fraudulent applications and transactions while also helping them make faster and more informed decisions.

The company’s solutions are designed for use cases including digital account opening, loan applications, credit-card applications and transaction monitoring.

Singla explained that the business operates largely on a transaction-based model, where financial institutions pay for the intelligence and risk-decisioning services provided.

Fraud Is a Constantly Changing Challenge

One of the key challenges in fraud prevention is that fraudsters continuously change their methods. Closing one route can lead to the emergence of another.

Singla highlighted how fraud has developed into a broader ecosystem, with everything from compromised accounts and fraudulent applications to social-engineering techniques being used to target individuals and institutions.

He also pointed out that ordinary people can unintentionally become part of fraudulent activities. For example, accepting money into one’s bank account on behalf of someone else or participating in seemingly attractive loan or crypto-related schemes can create serious consequences.

His advice is simple: when an opportunity appears to offer “free money,” pause and question why it is being offered.

Building for the Long Term

Looking ahead, Singla sees a larger opportunity in transforming financial data into actionable intelligence. His vision involves creating systems that can help financial institutions understand customers, assess risk and automate decisions more effectively.

For entrepreneurs entering the fraud-prevention space, he emphasized understanding long-term industry trends rather than chasing short-term opportunities.

The message from Singla’s journey is clear: technology may continue to evolve, but building trust, making informed decisions and staying committed to solving fundamental problems remain at the heart of sustainable innovation.

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This article is based on an episode of The Startup Caffe featuring Arvinder Singla, Founder of Sign3.
Watch the full conversation for deeper insights into fraud prevention, entrepreneurship and financial technology.