Riskified Helps Stop E-Commerce Fraud with 'Semantic Risk Engine'

Carmel Deamicis of Pando Daily reports, "Dr. Eyal Kishon, co-founder of Israeli based venture capital firm Genesis Partners, had a very personal reason for investing in Riskified, a startup that fights fraud for e-commerce sites. He kept getting rejected when he’d try to buy things online. Merchants would occasionally flag him as a “risky” purchase — perhaps because he lived in Israel and American stores can’t fact-check international addresses through the Address Verification System (AVS). Israeli startup Riskified, which recently raised a $1.65 million seed round, thinks its “semantic risk engine” is the answer. The technology builds a story around the shopper that ties together two types of information — the transaction information (where the person’s shipping address and billing address are, what proxy server they’re hiding behind, etc) and publicly available information about the person online. That way, they can more accurately predict which online shoppers are fraudsters and which are legitimate."

"For example," Deamicis continues, "if someone claims to live in Dubai, even though their billing address is in Vietnam, Riskified can determine where the person placing the order is actually located, and then compare that to the person’s social Internet trail to see whether their story adds up. Does the person say they belong to a certain company, and that company just moved from Dubai to Vietnam? It sounds like a lot of data to analyze, but Riskified trusts in their risk engine enough to insure customer purchases. Merchants hand over risky decisions to the company, and it gives them a big green thumbs up or a red thumbs down. If Riskified was wrong, and the purchase is fraudulent, then it foots the bill."

Read more here.

Image: Courtesy Riskified