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'Fraugster' Uses AI to Eliminate Payment Fraud

 - Jan 16, 2017
References: fraugster & techcrunch
Fraugster is a German and Israeli start-up that aims to provide more financial security and confidence for businesses that deal with digital payments. In today's economy, virtually all businesses deal with virtual payments in some form or another, so Fraugster's system stands to benefit a huge swath of the economy.

The Fraugster AI software uses machine learning in order to stop fraudulent attacks and even recognize when they're coming before they've struck. The system uses basic transaction data such as the purchaser's name, email address, as well as billing and shipping information. However, it also augments that data with advanced metrics like IP latency (to measure the real distance from the user,) distance between keystrokes and email name match.

According to the founders of Fraugster, this system can reduce fraud by 70 percent and increase conversion rates by 35 percent.