Riskified, one of a vanguard of antifraud technology companies offering online merchants a guarantee against fraud-related chargebacks, this week revealed it has secured $33 million in new funding. Riskified applies machine learning and proprietary behavioral analytics to card-not-present fraud detection and prevention and backs up their technology by covering 100 percent of the chargeback costs if a transaction its system approved is fraudulent.
Fraud affects different merchants in different ways, according to Riskified Co-Founder and CTO Assaf Feldman. Having nimble technology available to fight it becomes vital.
“One of the reasons that e-commerce fraud is so difficult to fight is that it impacts so much of the business and is constantly changing,” Feldman told CardNotPresent.com. “For instance, how do you factor in a difficult verification process that raises customer friction? Right now, account takeover might be the most damaging to our merchants, but soon it could be fraud through mobile. The capital we raised will help us stay ahead of fraudsters by investing more in our technology. Adding more engineers, analysts and data scientists will help us refine our models and approach and become even more accurate in evaluating transactions.”
The round, which brings Riskified’s total funding to $64 million, was led by Israeli firm Pitango Growth with participation from Capital One Growth Ventures, Groupe Arnault and C4 Ventures along with several existing investors.