Signifyd Leverages Social Profile to Fight Fraud
Oct. 21, 2013
Signifyd, a Palo Alto, Calif.-based startup that had been operating in beta, has announced the rollout of its antifraud service for e-commerce companies around the world. The company, founded by risk and fraud veterans who started their careers at PayPal, said the platform attempts to “bridge the gap” between a user’s behavior online and their actual circumstances offline.
As an example, the company proposed this scenario: “if a consumer is making a purchase from an IP address located in San Francisco but the consumer’s billing address is in France, existing fraud solutions will decline or manually review this transaction. Signifyd looks to see which country the card was issued and the strength of the consumer’s social profile. If the consumer’s Twitter account indicates they live around San Francisco and the issuing card bank was in France, Signifyd may approve this transaction.”
“E-commerce fraud detection has been one of the most critical and time consuming processes for online retailers, but most fraud detection tools aren’t suited for today’s cybercriminal who is becoming increasingly adept and advanced,” said Rajesh Ramanand, co-founder and CEO of Signifyd. “We’re bringing much needed innovation to the fraud solution market.”
The company has raised about $2 million from investors including Andreessen Horowitz and Data Collective.