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Fraud Sciences

Founded Year



Acquired | Acquired

Total Raised






About Fraud Sciences

Fraud Sciences is an innovator in online risk tools. Following years of intensive research, Fraud Sciences has developed a technology that differentiates between real and fraudulent transactions with unprecedented accuracy. Using this groundbreaking technology, Fraud Sciences offers a unique transaction verification service to manage online fraud.

Headquarters Location

1032 Elwell Court Suite 111

Palo Alto, California, 94303,

United States


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Expert Collections containing Fraud Sciences

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7,985 items

US-based companies

Latest Fraud Sciences News

Forter Raises $50 Million Series D To Fight Online Fraudsters

Sep 26, 2018

Victor Levi Forter, a company that uses machine learning to detect and prevent fraud in online retail transactions, announced today that it has raised $50 million in a series D funding round led by March Capital Partners, bringing its total financing to $100 million. Salesforce Ventures joined the round, along with previous investors including Sequoia Capital and New Enterprise Associates (NEA). Global online retail sales amounted to more than $2 trillion in 2017, and this number is projected to reach more than $4.5 trillion by 2021. But as online retail grows, so does online fraud. Account takeover attacks are on the rise, as are high-volume automated “bot” attacks and so-called policy attacks like coupon abuse. Innovations in mobile payments and expanded services like in-store pickup for online purchases have given fraudsters even more new leverage in the e-commerce space. Jamie Montgomery, a managing director at March Capital Partners, says that fraud prevention is a “much bigger market than most people realize,” and that the service Forter provides is indispensable. "You’ll ask a large corporate customer, 'what would you do without them?' And the answer is, 'we’d be screwed'," he quipped. Recommended For You Michael Reitblat, Forter's CEO, says that the company can reduce fraud levels for a merchant by 50%. Forter has tripled its customer base in the last twelve months and Reitblat says it's on track to grow more than 150% between 2017 and 2018, though on the whole, Forter is not yet profitable. "What we’re looking for is a growth in the business, and the company is growing," Montgomery says. Of course, Forter isn't the only player in the fraud prevention space. Riskified, founded the same year as Forter in 2013, raised a $33 million series C in 2017, and Signifyd, founded in 2011, raised $100 million in a series D round in May. All three companies offer a form of "chargeback guarantee," meaning that they reimburse merchants for chargebacks related to fraudulent transactions that were wrongly approved. Reitblat founded Forter along with Liron Damri, the company’s president, and Alon Shemesh, its chief analyst. Reitblat met Damri at a boarding school in Jerusalem before serving as an officer in Israel’s military intelligence unit. All three co-founders previously worked for Fraud Sciences, an Israeli company specializing in online fraud prevention that was acquired by PayPal in 2008 for $169 million. “We were on to something,” says Reitblat of his time at Fraud Sciences, but the technology at the time was still in its nascent stages. “Fraud Sciences was very, very manual. It was very accurate, but it required a lot of people to review transactions and make decisions.” Reitblat, Damri, and Shemesh helped develop fraud prevention technology at PayPal before founding Forter five years after the acquisition. Today, Forter processes more than $50 billion in transactions annually for its network of retailers, which includes Fortune 500 companies like Nordstrom and startups like Away Travel, using a machine learning algorithm rather than manual reviews. Reitblat says the algorithm is both substantially more accurate than older fraud detection methods and claims it is infinitely scalable. The algorithm collects thousands of data points about online transactions, from the type of device a would-be customer is using to their geographic location to their browsing behavior on the website. Data like this is collected well before a customer enters their credit card details and hits “submit” on an order. “We start looking at how you behave,” Reitblat says. “What are you doing? Are you behaving like someone who wants to order something? Or are you testing different cards?” Suspicious transactions get rejected based on thousands of indicators, and the system accounts for changes in a shopper's regular habits to prevent legitimate transactions from being flagged as fraudulent. And as more customers sign on, Forter says its performance will only improve. “The more customers we have, the more merchants we work with, the more data we see, the more patterns we recognize sooner, the better the performance is,” says Reitblat. In other words, more customers don’t strain the network; rather, they enhance it. Forter’s database already covers over 180 million U.S. consumers as well as 50 million additional shoppers in 188 countries on more than 2.1 billion devices. Better pattern recognition means fewer errors, especially when it comes to false positives, which Reitblat estimates cost the U.S. economy $20 billion per year in lost sales. Eido Gal, CEO of Riskified, says a major challenge in the space is keeping up with the changing fraud landscape without enacting imprecise fraud detection criteria that could potentially turn away legitimate customers. “That's a big challenge for the industry as a whole,” Gal says. “How do we maximize approval rates and maintain the customer experience as fraudsters get more advanced?” Ultimately, better fraud detection means more profits for all retailers. While many online transactions from developing economies in Africa, southeast Asia, and even China, for example, would have been blocked by older iterations of these solutions, today’s more advanced algorithms are more likely to approve legitimate purchases. Reitblat says he hopes that one day, retailers won't have to differentiate themselves based on their ability to prevent fraud: it should be a given. "Fraud should not be a problem they're even thinking about," he says. When merchants can focus on the other aspects of their business, “it benefits everyone.” Follow me on  Twitter . Send me a secure  tip .

Fraud Sciences Frequently Asked Questions (FAQ)

  • When was Fraud Sciences founded?

    Fraud Sciences was founded in 2001.

  • Where is Fraud Sciences's headquarters?

    Fraud Sciences's headquarters is located at 1032 Elwell Court, Palo Alto.

  • What is Fraud Sciences's latest funding round?

    Fraud Sciences's latest funding round is Acquired.

  • How much did Fraud Sciences raise?

    Fraud Sciences raised a total of $12.75M.

  • Who are the investors of Fraud Sciences?

    Investors of Fraud Sciences include PayPal, BRM Group and Redpoint Ventures.

  • Who are Fraud Sciences's competitors?

    Competitors of Fraud Sciences include Bouncer and 3 more.

Compare Fraud Sciences to Competitors

SEON Technologies

SEON Technologies offers end-to-end fraud prevention and detection tools for businesses. Its artificial intelligence (AI)-powered system uses data enrichment and machine learning to reduce revenue loss and manual review time. The company was founded in 2017 and is based in London, United Kingdom.


NS8 is an eCommerce company that provides abuse, fraud, and user experience protection tools. The company uses behavioral analytics, real-time user scoring, and global monitoring to optimize and protect against threats, which give eCommerce merchants insight into their real customers.

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Shield is a software-as-a-service (SaaS)-based self-learning fraud prevention solution for e-commerce. It combines latest fraud detection technology with machine learning, predictive analytics, and big data that runs on an optimized risk algorithm to compute the decision for accepting or rejecting each transaction. It was formerly known as CashShield. It was founded in 2008 and is based in Singapore, Singapore.

Feedzai Logo

Feedzai leverages AI, machine learning technology to provide omnichannel fraud prevention solutions for banks, payment providers, and retailers transacting in virtually every country in the world to manage risks associated with banking and eCommerce. It was founded in 2009 and is based in San Mateo, California.

Vesta Logo

Vesta offers a transaction guarantee platform for online purchases and electronic payment solutions. It is engaged in fraud protection and e-commerce payment solutions that assist online merchants, telcos, payment processors and acquirers optimize revenue by helping eliminate the fear of fraud through a variety of channels, including the internet, mobile phones, retail point of sale, and mobile commerce applications. Vesta was formerly known as Carrier Services. The company was founded in 1995 and is based in Lake Oswego, Oregon.


Quova enables online businesses to identify where a visitor to their website is geographically located. It enables them to geotarget their advertising and content, detect card-not-present fraud, manage the distribution of digital content, comply with local laws, and more. Quova was founded in 2000 and is based in Mountain View, California.

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