Fraugster

About Fraugster

Fraugster, a German-Israeli company, was established in 2014 by co-founders Max Laemmle and Chen Zamir. Laemmle, who serves as the CEO, previously held the role of COO at the payment gateway company SumUp, while Zamir, the CTO, has a background as a data scientist and co-founded another company before Fraugster. Their combined experience in payments and data science laid the groundwork for the company's focus on fraud prevention.

The company operates in the digital payments and e-commerce space, offering fraud detection and prevention services. Its primary clientele consists of online merchants, payment service providers (PSPs), and acquiring banks. Fraugster's business model is primarily based on a managed services or Software-as-a-Service (SaaS) fee structure, where clients are charged for the use of its platform and services. The core of Fraugster's offering is an AI-powered platform designed to manage payment fraud risk.

The platform provides two main products: Fraud Management and Chargeback Protection. The Fraud Management solution uses artificial intelligence to analyze data in real-time, helping businesses to identify and block fraudulent transactions while approving legitimate ones, thereby aiming to reduce false positives. The Chargeback Protection service takes this a step further by offering a guarantee against chargeback losses, where Fraugster assumes the financial liability for fraudulent chargebacks in exchange for a fee. A key component of their technology is the direct integration into the payment ecosystem, which allows for the enrichment of transaction data with over 100 different data points, enhancing the accuracy of the AI's decisions.