The Christmas season is fast approaching, and in preparation stores, both brick-and-mortar and online, are preparing for the shopping rush. However, purchasing fraud is a growing and costly problem for online retailers. Israel’s Fraud Sciences has developed a technology that helps online retailers verify the identity of buyers and accept orders that they would have seen as suspicious in the past – thus enabling them to increase their sales.
According to Business Week’s article on Fraud Sciences, “online purchases charged to stolen or illegitimate credit cards cost merchants an estimated $3 billion in the U.S. alone. Many believe the actual cost is much higher.”
Fraud Sciences was founded four years ago by two former members of the Israel Defense Force intelligence unit (of course!). The company has raised $15 million in funding from Israel’s BRM Capital Advisors and Redpoint Ventures in Menlo Park, Calif.
To read more about Fraud Sciences and its technology, see Neil Sandler, “The War on Fraud,” Business Week, Oct. 2, 2007.
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