PayPal has entered a collaboration with online fraud and abuse prevention company Arkose Labs to tackle fraud and security threats on its Honey shopping platform.
Founded in 2012, Honey operates a browser extension that aggregates and automatically applies online coupons on ecommerce websites. It was acquired by PayPal in 2019.
According to Arkose, its platform classifies traffic based on the underlying intent of users and deploys the appropriate countermeasures to fix attacks in real-time.
The company highlighted that its approach to tackling fraud in the ecommerce market includes streamlining the account sign-up process and preventing potential fraudsters from using stolen or fake user credentials to set up false accounts.
Furthermore, Arkose claims it stops account takeover of user accounts as well as protecting inventory information and other commercially sensitive data from malicious scraping activity. The platform is also able to prevent inventory hoarding from automated bots and can detect large-scale testing of stolen payment credentials on ecommerce checkout pages in addition to preventing fraudulent gift card purchases.
PayPal enterprise cyber security VP Assaf Keren said, “PayPal’s brand is built on the trust of our consumers and we take all steps to prevent fraud and abuse on an ongoing basis. By collaborating with Arkose Labs, we continue to advance security and vigilance to a new level where merchants and consumers alike have even more confidence their transactions are safe.”
Arkose Labs CEO Kevin Gosschalk added, “Fraud detection and prevention has never been more important, and Arkose Labs enables ecommerce platforms to take a zero-tolerance approach to fraud and abuse on their websites and apps, while enhancing user experience and customer loyalty.
“We look forward to working with PayPal and the Honey team to tackle fraud and abuse in its different forms with an approach that embraces targeted friction combined with risk-based assessments.”
Arkose recently raised $70m from a Series C funding round. The company claimed the newly raised capital will be used to further its platform development as well as hire new staff and further its global expansion.
Copyright © 2021 RegTech Analyst
Copyright © 2018 RegTech Analyst
