Israel-based predictive AI fraud protection company nSure AI raised $6.8m in seed funding led by DisruptiveAI, Phoenix Insurance, AXA-backed venture builder Kamet, Moneta Seeds and private investors.
Prior to this round, the company received $550,000 in pre-seed funding from Kamet in March 2019.
nSure AI will use funds for developing its predictive AI and machine learning algorithms to boost its digital fraud detection offering, reducing decline rates by 90% from an industry standard of declining 20% to only 2%.
Founded by Alex Zeltcer and Ziv Isaiah, nSure.ai provides a predictive AI fraud protection solution made for sellers of high-risk digital goods and services in industries including digital wallets & banking services, airline tickets, software, games and more. nSure AI’s risk engine leverages deep learning techniques to accurately identify fraudulent transactions.
The company’s patented predictive AI technology has already been tested at scale and handles transaction value of hundreds of millions of dollars every year.
Today’s fraud protection tools analyze each online transaction in an attempt, but an average of 15% of transactions are obscure and require a manual review, which results in delays in delivery or high rejection rates of legitimate customers. Industry benchmark detection declines approximately 15% to 20% of transactions. nSure.ai solution’s 98% approval rate reflects a more accurate fraud-detection strategy and enables retailers to recapture nearly $100bn a year in lost revenue.
In addition, sellers of physical goods have access to incumbent anti-fraud technologies that prevent fraudulent charges and come with chargeback guarantees. But with nSure.ai’s technology digital goods retailers can be free of worry and opening greater opportunities to scale, the firm said.
Commenting on the round, Zeltcer said, “This investment enables us to register thousands of merchants, who can feel confident selling higher-risk digital goods, without accepting fraud as a part of business.”
Disruptive AI venture partner Gadi Tirosh added, “We believe that fraud, especially in the booming field of digital goods, can only be fought with top-of-the-line AI technologies. nSure.ai has both the technology and industry understanding to win this market.”
NSure AI, which currently monitors and manages millions of transactions every month, has approved close to $1bn in volume since going live in 2019.
Copyright © 2018 RegTech Analyst
