The Cube Journal
Fintech is Cool!
Fraugster, the software company that uses artificial intelligence to prevent fraud for online retailers, has raised $14m in a Series B funding round led by CommerzVentures, the venture capital subsidiary of Commerzbank, and early Fraugster investors Earlybird, Speedinvest, Seedcamp and Rancilio Cube. Munich Re / HSB Ventures, the venture capital arm of the global reinsurer Munich Re, also participated in the round.
Berlin-based Fraugster, founded in 2014 by Max Laemmle and Chen Zamir, will use the funds to continue its expansion into new markets, including the US, Asia and Europe, where retailers are facing an accelerating battle against fraud. Online merchants lose more than $30bn to fraudulent transactions every year and Fraugster is determined to wipe out the problem for its clients. The company helps them tackle fraud with its innovative technology, which learns from each transaction in real-time and can anticipate fraudulent attacks before they happen. Fraugster is already handling almost $35bn in transaction volume for international merchants and payment service providers, it works with Ingenico ePayments, Six Payments and other payment companies.
Founder and CEO Max Laemmle says: “Our technology is constantly improving and adapting to new fraud trends as they emerge around the world. We are protecting our clients from the risk of fraud and also giving them a significant revenue uplift because we’re reducing the number of genuine transactions that are erroneously blocked.”