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Paypal Buys Fraud Sciences

Paypal Buys Fraud SciencesIt seems as if most of the world knows Paypal and eBay these days; they’ve become ubiquitous. With that fame has comegreater possibilities of fraud – simply witness all those phishing e-mails.   But now Paypal has acquired Fraud Sciences, an e-commerce securitycompany run by two former members of Israel’s Mossad secret service, E-Commerce Times reports. The sale is expected to go through within 30 days for$170 million cash, and with Fraud Science founders Shvat Shaked and Saar Wilf both joining Paypal’s technology and fraud management teams.   "Integrating Fraud Sciences’ risk toolswith PayPal’s sophisticated fraud management system should allow us to be even more effective in protecting eBay and PayPal’s hundreds of millions of customers around the world," saidPaypal’s president, Scott Thompson.   Fraud Sciences has proved popular with merchants as it allows them to verify the identities of purchasers, which inevitably decreases fraud, and itwill prove useful not only to Paypal, but to eBay itself, which has had its share of fraudsters over the years, an almost inevitable outgrowth of the kind of business it’s in.   Theacquisition will help Paypal as it pushes its non-auction business, in spire of competition from Google Checkout.

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