An Israeli startup with an AI-based antifraud fraud solution designed specifically for digital goods merchants has secured a Series A funding round of $18 million. nSure.ai said the cash infusion will be used to further develop its solution. The company joins the growing ranks of antifraud technology providers that guarantee to cover chargeback costs on fraudulent transactions its technology approves as legitimate.
nSure.ai’s founders were moved to create the company after they found 40 percent of sales in their original business, a digital gift card site, were fraudulent and existing fraud-fighting technology was suited more for physical goods. They decided the fraud challenges endured by merchants selling digital goods including software, digital wallet transfers, international money transfers, event tickets, in-game purchases in video games and others needed an AI-based approach. Alex Zeltcer, nSure.ai’s CEO, said the rise of NFTs and crypto have made such a solution even more important for digital goods sellers.
“FinTech companies powering wallets and crypto-based services offer an immediate transfer of funds, creating a huge incentive for sophisticated fraudsters and scalable fraud patterns,” said Alex Zeltcer, Co-founder and CEO of nSure.ai. “Standard, e-commerce based fraud prevention platforms are ill-equipped to deal with this new market. Merchant-specific AI models, along with real-time anomaly detection, such as the ones we offer, help these new generation companies on their growth without taking excessive risk.”
The round was led by MoreTech Ventures, with participation from DisruptiveAI, Gryffin Ventures, and Moneta Seeds.