Panopticon Laboratories

Panopticon Laboratories targets the lucrative online video game industry, providing cybersecurity solutions to protect publishers from in-game financial and reputational damages. The company was founded by Matthew Cook and Brian, individuals with backgrounds in online banking security and data science, respectively. The idea originated when Cook, a 15-year veteran of the online banking fraud industry and an avid gamer, recognized that the fraud in video games mirrored the security challenges banks have been combating for years. Brian contributes a Ph.D. in applied mathematics and extensive experience in developing statistical software to identify anomalies in complex systems.

The company's business is focused on serving online video game publishers who are vulnerable to cyber criminals committing fraud and abuse, such as stealing high-demand virtual items and currency for real-world monetary gain. Panopticon Laboratories claims that publishers can lose up to 40% of their in-game revenue from such illicit activities. The firm operates on a Software-as-a-Service (SaaS) business model, offering products that help publishers mitigate these financial risks. To date, the company has raised a total of $120K in funding over two rounds from the investor Taivara.

Panopticon's core product is 'Watchtower,' a security platform that utilizes proprietary anomaly detection and behavioral analytics. It establishes a baseline of normal activity for each player, enabling it to proactively discover suspicious in-game behavior like abnormal item transfers or erratic gameplay with high accuracy. This system provides publishers with a comprehensive overview of player behavior, offering real-time alerts and tools for incident investigation and remediation. The platform's machine learning engine is designed to become more intelligent over time, enhancing its threat detection capabilities. For publishers wanting to understand the extent of malicious activity within their games, the company also offers 'Watchtower Research Edition,' which models 90 days of historical activity.

Keywords: in-game cybersecurity, video game fraud protection, online gaming security, anomaly detection, behavioral analytics, virtual item theft, in-game revenue protection, game publisher tools, SaaS security, fraud detection, account takeover prevention, cheat detection, financial damage mitigation, risk management for games, Matthew Cook, game security solutions, Watchtower security, player behavior analysis, online fraud prevention