Banking

PayPal to buy online fraud detection firm

eBay-owned PayPal has announced the acquisition of privately-held online fraud detection firm Fraud Sciences.

eBay-owned PayPal has announced the acquisition of privately-held online fraud detection firm Fraud Sciences.

An excerpt from TechWorld:

Fraud Sciences, a private company, has developed technology designed to differentiate between real and fraudulent transactions. That technology will be folded into PayPal's anti-fraud systems, which will be "significantly" improved this year, eBay said. Fraud Sciences' chief operating officer, Yossi Barak, and founders Shvat Shaked and Saar Wilf will move to PayPal's technology and fraud management teams.

The online payments firm is bolstering its defenses against the rising threat of phishing scams. PayPal will shell out $169 million for the acquisition.

More information:

eBay's PayPal to buy Fraud Sciences (News.com)

PayPal Buys Fraud Sciences for $169M (PC World)

PayPal buys Israeli security firm (Register)

7 comments
as901
as901

Ebay does indeed own Paypal, and they have for some time. What concerns me is the question of why buy this anti fraud site? Up until now, Ebay has closed their eyes to fraud, and they made claimed that "feedback was good enough". The trouble was that frauds would often blackmail the honest person with the threat that they will post false claims andd not remove their lies unless the poor sap removes negative feedback against the crooked Fraud Ebayer. Now, what is the motives to buy the site? Is it more charges for fraud coverage? Is it to cover up fraud, or has Ebay decided to clean up their act? Don't get me wrong. I use Ebay, but I also know that Ebay may not act in cases of fraud. That means I must be far more wary than I would be with Amazon or other sites.

5th Regimental Combat Team
5th Regimental Combat Team

Subsidiaries buy other companies all the time for their own purposes. It appears Paypal is buying them, to prevent fraud which could cost Paypal money. They have to protect the accounts of users, like any other bank. Paypal is officially a Bank, protected just like any other Bank. They probably purchased the company not just for their own protection, but for the profits it makes already. Projecting future profits from other banks.

JCitizen
JCitizen

fraud problem. I'm getting tired of forwarding fraud/phishing email them and the FTC. With no results!

BALTHOR
BALTHOR

PayPal is the worst idea ever.

5th Regimental Combat Team
5th Regimental Combat Team

You must be very our of touch or not use eBay, and Paypal works very well, except for fraudulent users.

zachschi
zachschi

I have been ripped off and then left with the bill thanks to Paypal's EXCELLENT customer service. Thats one fraud protection company I'll stay away from. E-bay has really gone down hill in the past few years anyway. It was cool when it first came out. Now it seems like a site full of mediocre deals and scammers.

JCitizen
JCitizen

a "power seller" or much of a buyer. It is rough to be a businessman on ebay though. I know, because two of my friends are - and it is dog eat dog to make any money there.

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