The increased digitization of global commerce and banking globally — with the expansion of cross-border ecommerce and the adoption mobile banking in the past decade — presents a juicy target for organized criminal groups who only need an Internet connection to make easy money.
Financial fraud prevention is a big business, with the market expected grow 20 percent per year to reach $42.6 billion in size by 2023, according to global consultancy KBV Research.
Within this environment, Israel-based or Israeli-founded companies have quietly built a large and growing presence in the anti-fraud market, with at least 35 companies active in the field, ranging from early-stage startups to post-exit companies that have become divisions in larger multinational corporations.
The Israeli hi-tech scene is well known for producing cutting edge solutions across a variety of industries and verticals. Ecommerce fraud is no different. A number of Israeli startups are pushing the envelope on the machine learning and AI techniques required to fight increasingly sophisticated fraud attacks. From phishing attacks to credit card skimming hacks, there is no type of eCommerce fraud problem these companies aren’t trying to solve.
To date, the 35 Israeli-founded anti-fraud companies have raised over half a billion dollars in venture capital investment and generated $1.5 billion in successful exits, according to data compiled from Crunchbase.
Some examples of Fraud Prevention companies from Israel:
ClickCease: ClickCease is a software company that prevents fraudulent clicks on Google Adwords ads. Click fraud will waste 20% of PPC advertisers’ budgets in 2021. Competitors and bots can click on your ads and waste your advertising budget. ClickCease™ Google Ads click fraud protection software will exclude invalid IPs and block fake clicks. This will boost your campaigns and allow you to acquire more customers.
Riskified: Riskified aims to help the eCommerce industry realize its full potential by making it safe, accessible, and economic. Brands from airlines to luxury fashion houses to gift card marketplaces trust Riskified to increase revenue, manage risk, and enhance their customer experience. Riskified uses powerful machine-learning algorithms to recognize legitimate customers and keep them moving toward conversion. Using Riskified, merchants can safely approve more orders, expand internationally, and fulfill omnichannel flows while providing a frictionless customer experience.
BioCatch: BioCatch delivers behavioral biometrics, analyzing human–device interactions in order to protect users and data. Banks and other enterprises use BioCatch to significantly reduce online fraud and protect against a variety of cyberthreats without compromising user experience.
Segasec: Segasec is a cybersecurity start-up specializing in helping organizations mitigate the risk of their customers becoming victims of online fraud and phishing scams. The company’s patent-pending technology provides early intelligence for upcoming phishing scams (scams in preparation mode), running quadrillions of targeted scans that identify even unknown attack patterns. Once these attacks are identified, and before customers are targeted, Segasec’s solution works to confuse and defuse the attackers, taking down and blocking the compromised assets while deceiving the attackers in order to reduce the risk of exposing customers’ personal information. Segasec’s solution requires zero onboarding and no integration, so companies can start getting protected immediately.
Forter: Forter has developed a fully automated fraud-prevention platform that avoids a cumbersome verification process for customers. The company’s triple-layered technology observes models and anomalies in online user behavior, learning from every transaction to distinguish between authenticity and fraud in order to produce an immediate approve/decline decision.
Identiq: Identiq’s identity-validation solution creates a completely anonymous distributed network that allows members to validate new users and vouch for ones they already know. All of this is done without sharing any customer data or identifiable information. This approach enables members to make accurate decisions regarding fraud based on a greater number of data points as well as offer a better user experience to their customers. It also provides strong proof of identity by connecting multiple assets such as email, phone number, address, IP address, and funding source at the time of onboarding, first payment, or after indications of account takeover.
For further information on fraud prevention technologies from Israel, contact the Trade and Economic Mission to Ghana.
Maame Yaa Owusu-Amoah; Business Development Manager-Fintech, CyberTech, Innovation – Ghana