3rd PIC 2016 Fraugster, Germany: Financial technology
Our vision at Fraugster is to create a fraud-free world.
About the product
Fraugster has invented an artificial intelligence technology that combines human like accuracy with machine scalability. This ability lets us foresee fraudulent transactions before they happen and gives us a distinct competitive advantage over every other player in the anti-fraud space.
About the market
Fraud attacks are getting more sophisticated every day and more money is being lost to fraud than ever before. The fear of fraud forces merchants to adopt outdated technologies which cannot deal with advanced fraud attacks from cyber criminals and make things worse by blocking too many good customers. Transactions need to be dealt with on a case by case basis. With the large amount of information transacted in e-commerce, data driven artificial intelligence applications are particularly relevant for understanding user behavior and preventing fraud.
What are your venture’s key achievements to date?
Based on average performance, we can reduce fraud attacks by as much as 90 %. Our response rates are as low as 15 milliseconds - this is over 10x faster than standard industry solutions. Because of how accurate our technology is, we can reduce false positives (mistakenly blocking good customers) drastically, increasing conversion rates by up to 35 %.
What are you plans for future development?
Starting from Q1 2017, we are taking over the full liability for every transaction. This will ensure a 100 % risk free environment for our clients.
What is your competitive environment?
Our competitors are large enteprise level companies like SAP, FICO, Oracle, etc. who use outdated technologies like manual review and rule based decisioning systems to detect and prevent fraud. These technologies are highly inaccurate and can't keep up with new security breaches. Even the ones using machine learning use static algorithms, which cannot be tailored to individual transactions.
As explained above, Fraugster is significantly different because our AI engne can analyze transactions individually. Furthermore, our systems are completely scalable and can deliver the same quality of results without affecting performance.