PayPal, the online payments platform owned by eBay, has shelled out $170 million in cash to snap up Fraud Science, an Israeli company that markets fraud management technology.
PayPal, which is high on the list of phishing and ID theft targets, said Fraud Sciences' risk tools and analytics will enhance eBay and PayPal's proprietary fraud management systems and accelerate the development of new fraud detection tools.
Key personnel from Fraud Sciences, including Yossi Barak, Fraud Sciences' chief operating officer, and founders Shvat Shaked and Saar Wilf, will join the company's technology and fraud management teams. Gadi Maier, Fraud Sciences' President and CEO, will provide strategic and operational support to the company during the integration period.
Fraud Sciences, which was backed by BRM Capital, Redpoint Ventures and other U.S. and Israeli investors, created technology that differentiates between real and fraudulent transactions. The company used the technology to market a transaction verification service to manage online fraud.