Fraugster is a Berlin-based startup that uses artificial intelligence to detect and prevent fraud for online retailers and payments firms. Its technology aggregates data from multiple sources, analyzes and cross-checks it in a fraction of a second, and aims to reduce false positives so more legitimate transactions are approved. The company sells to payments companies including Ingenico ePayments and Six Payments. Fraugster offers a “Fraud Free” product that takes on the full liability for each transaction, a product feature backed by insurance from Munich Re/HSB Ventures. CEO and co-founder Max Laemmle says the company has reduced the industry’s typical false-positive cost ratio from $17 to $2. Fraugster plans to use new funding to expand into the U.S., Asia and further into Europe. Fraugster builds an AI‑powered fraud detection platform that analyzes enriched transaction data with a self‑learning algorithm that mimics a human analyst. Its system enriches transactions with roughly 2,000 additional data points (IP latency, connection type, keystroke distance, email name match, etc.) and routes the dataset to an engine that delivers decisions in as little as 15ms using proprietary in‑memory database technology. The company says its technology can reduce fraud by 70% while increasing conversion rates by as much as 35%. Fraugster reports handling almost $15 billion in transaction volume for “several thousand” international merchants and payment service providers, including Visa. Founded in 2014 by Max Laemmle and Chen Zamir and operating from Germany and Israel, the startup plans to use new capital to add headcount and expand internationally. It positions itself against incumbent enterprise players like FICO and SAS, which it describes as based on outdated, rule‑based systems.

Total raised

$19M

Funding rounds

2

Latest round

Series B

Latest activity

Nov 2018