The surge in cybercrime has reached alarming levels, with info-stealer malware becoming a significant threat to organizations worldwide. According to IBM's 2024 X-Force Intelligence report, there has been a staggering 266% increase in the use of info-stealer malware over 2023. This type of malware collects login credentials, allowing hackers to gain unauthorized access to target networks without having to exploit vulnerabilities.

Instead of breaking into networks, hackers can simply log in using stolen credentials, which can be easily purchased on the dark web. This shift in tactics has made it increasingly difficult for organizations to protect themselves against cyber threats. The recent Snowflake incident, which saw hackers compromise access to the platform using stolen credentials, highlights the severity of the issue.

In response to this growing threat, Montreal-based startup Flare has developed an innovative solution. Its new Account and Session Takeover Prevention feature monitors the dark web for signs of compromised login credentials and automatically resets impacted passwords before hackers can gain access. The feature also detects stolen session cookies, which can trick computers into thinking a hacker is a previously authenticated user.

Flare's CEO, Norman Menz, emphasized the importance of proactive measures in preventing cyber attacks. "All these organizations had their access to their Snowflake environments essentially compromised. There was no breach of the Snowflake platform," Menz explained. "Hackers were using credentials from info-stealing malware."

Flare's unique approach to cyber threat intelligence sets it apart from competitors. Founded in 2017, the company has developed a modernized CTI platform geared towards small to mid-sized companies. Its claim to fame is its ability to monitor threat actors using the messaging app Telegram, which has become a hub for cybercriminal activity.

Telegram's founder, Pavel Durov, was recently arrested and released on bail in France, charged with running a company complicit in distributing child sexual abuse material and facilitating drug trafficking and organized fraud. Following his arrest, downloads of the messaging app surged, highlighting the complexity of the issue.

Flare's innovative solution has attracted significant investment, with the company securing a $30 million Series B led by Base10 Partners' Jason Kong. The funding round, which also saw participation from Inovia Capital, White Star Capital, and Fonds de solidarité FTQ, represents a 5.6-times increase in valuation over its 2022 Series A.

The company's growth and user base have been key factors in its success, with Flare boasting around 100 employees and 250 customers across over 40 countries. According to Kong, "Flare looks outside of the perimeter into enemy territory where these organized cyber criminals are talking, engaging, transacting business. They're the spies, if you will."

Flare's ability to raise significant funding is also attributed to the recent sale of Recorded Future to Mastercard for $2.65 billion, demonstrating the potential for big exits in the threat intelligence space. However, Flare faces stiff competition from established players like Mandiant, Palo Alto Networks, and Microsoft.

As cybercrime continues to evolve and become increasingly sophisticated, innovative solutions like Flare's are crucial in staying one step ahead of hackers. With its new anti-info-stealing tech and significant investment, Flare is well-positioned to make a significant impact in the cybersecurity landscape.