Fraud Sciences

About Fraud Sciences

Fraud Sciences was an Israeli-based company established in 2001 by co-founders Saar Wilf and Shvat Shaked. Wilf, a serial entrepreneur who had previously founded the payments company Trivnet, brought his experience as a developer and programmer to the new venture. His background also includes service in the Israeli Defense Forces' intelligence Unit 8200. Shaked assumed the role of Chief Technology Officer. The duo's prior collaboration at Trivnet laid the groundwork for their next enterprise.

The firm specialized in developing sophisticated online risk management tools designed to identify and prevent fraudulent transactions before they could impact online merchants. Its core technology centered on differentiating between legitimate and fraudulent activities with a high degree of accuracy. This was offered to clients as a transaction verification service. A key component of Fraud Sciences' business model was a guarantee to its customers: if the system failed to detect an attack, the company would provide reimbursement, effectively insuring them against online fraud.

Operating in the burgeoning e-commerce market, the company targeted online retailers, assisting them in verifying buyer identities and making informed decisions on accepting orders based on risk analytics. After its inception, the company operated for several years, dedicating time to intensive research and development of its proprietary technology. It successfully raised $11 million through two funding rounds, with key investors including BRM Capital and Redpoint Ventures.

A significant milestone in the company's history occurred in January 2008, when PayPal, at the time a subsidiary of eBay, announced its agreement to acquire Fraud Sciences for approximately $169 million in cash. This acquisition was a strategic move by PayPal to bolster its own fraud management systems and accelerate the creation of next-generation fraud detection capabilities. Following the acquisition, key personnel from Fraud Sciences, including founders Saar Wilf and Shvat Shaked, transitioned to join PayPal's technology and fraud management teams, integrating their expertise into the larger organization.