News
Reuters and TechCrunch have both reported that eBay through PayPal has purchased the Israeli fraud solutions company, Fraud Sciences for $169 million. The acquisition has received mixed reactions in the blogosphere, with some questioning how smart it was for eBay to pay such an “inflated” price for the company, and others unsurprised as fraud has hurt the use of eBay by honest customers in foreign countries, and is a much needed improvement for the struggling company.
About
According to TechCrunch’s description, Fraud Sciences
“offers automated anti-fraud systems including SpotLight VFX and SpotLight T2T, merchant
solutions the provide transaction verification with fraud prevention.”
Israeli R&D companies database, Matimop.org.il, adds that the promise of the company’s science
“is to emphatically prove a customer is who they represent themselves to be with minimal
or zero verification friction. Thus, enabling “online merchants to accept more business from
more markets and increase the lifetime value of customers.”
TechCrunch also details how the acquisition “will assist them [eBay] in significantly improving trust and safety across its sites in 2008,” by integrating Fraud Sciences’ “risk tools with PayPal’s fraud management system.” Additionally, the Fraud Science’s management team won’t have to worry about seeking new employment as they will join PayPal’s technology and fraud management teams.
Company Facts
Founded in 2001
Shvat Shaked and Saar Wilf, founders
Gadi Maier, CEO
Yossi Barak, COO
Website: www.fraudsciences.com
