Online payment security company Fraugster raises € 4.7 million

German-Israeli company Fraugster, which uses AI to eliminate payment fraud in online transactions, has raised €4.7 million in funding. The funding came from new investor Earlybird, alongside existing investors Speedinvest, Seedcamp and a large Swiss family office.

fraugster

German-Israeli company Fraugster, which uses AI to eliminate payment fraud in online transactions, has raised €4.7 million in funding. The funding came from new investor Earlybird, alongside existing investors Speedinvest, Seedcamp and a large Swiss family office.

Fraugster was founded in 2014 by Max Laemmle, who previously co-founded payment gateway company Better Payment, and Chen Zamir, who spent more than five years at PayPal. The company is already handling almost €15 billion in transaction volume for several thousand international merchants and payment service providers. Fraugster spent more than two years refining its algorithms and improving its AI capability. Based on average performance, the solution can reduce fraud by 70% while increasing conversion rates by as much as 35 percent. The startup's technology learns from each transaction, and can anticipate fraudulent attacks even before they happen.

Read more: EU Startups

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