Riskified: The New Player In E-commerce Security
A new Israeli company called Riskified is entering the vast field of security issues that occur between online buyers and merchants. “Today an online dealer loses an average of five percent of transactions out of fear of being cheated,” said Gal, founder of the company, in an interview with Calcalist. “We realized there is a lot of money being lost and saw a business opportunity.”
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The company was founded in 2012 by Gal and Assaf Feldman, and has recently finished a fundraising round of $1.65 million, led by venture capital fund Genesis Partners. John Landes, one of the founders of PayPal, has also invested in Riskified through a new investment fund, Formation 8, and was one of the fund’s first investments.
Riskified‘s solution allows merchants to authorize transactions that they previously avoided. “We have established a system that operates with the merchant. When they encounter a transaction they are concerned about, they can just pass it on to us. We check it out, and if it gets our approval, the responsibility is with us. In the event of cheating we absorb the loss,” says Gal. The company’s clients include services such as music equipment provider turntablelab.com and the jewelry website rhinestonejewelry.com.
Despite his young age, twenty-eight-year-old Gal is among the leading experts of online fraud in internet transactions in Israel. He began his journey in the world of cyber-security while serving in one of the elite computing units of the Israeli Defense Forces. From there he moved to Fraud Sciences, a company that deals with credit fraud. It was among the leading Israeli companies in the field and was sold to PayPal in 2008 for $169 million. Gal then moved on to Israeli company Billguard, where he met his business partner Assaf Feldman.