This week, a new technology startup promising a better online fraud prevention solution came out of beta. New York City-based NoFraud leverages a proprietary algorithm that synthesizes data from various sources including the device, the transaction, the user’s social media accounts, global black lists, bank information, CVC/CVV information, merchant-specific information and more.
The company was founded by online merchants from the jewelry and electronics verticals. Shaya Posner, a former executive for online electronics retailer A4C, and Isaac Gurary, founder and president of Maiden Lane Jewelry, founded NoFraud in 2014 when they were battling fraud in their businesses and were unsatisfied with existing solutions.
The startup claims its solution will reduce fraudulent transactions to 0.01 percent and false positives to 0.2 percent. If a transaction is still questionable after applying the algorithm, the company said it will personally contact the legitimate cardholder to verify the purchase.