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EBay Buys Fraud Services Company For $169 Million

 3:05 pm on Jan 28, 2008 (gmt 0)

EBay Inc. said it's buying Fraud Sciences, a privately held Israeli online risk tool provider, for $169 million in cash. EBay said it's buying the firm to boost eBay and PayPal's proprietary fraud management systems.

EBay Buy Fraud Services Company For $169 Million [marketwatch.com]



 5:25 pm on Jan 28, 2008 (gmt 0)

So, with the buy out, I wonder if they'll bring that business to the U.S. or keep it in Israel. If they keep it there, that will be just one more thing that we're outsourcing. The effect the outsourcing has on Customer Assurnace and GDP?


 5:36 pm on Jan 28, 2008 (gmt 0)

Israel is no third world country..and they seems to have done good enough so far from Israel so even they stay there it's fine.


 5:45 pm on Jan 28, 2008 (gmt 0)

They have an office in Palo Alto too.


 9:37 pm on Jan 28, 2008 (gmt 0)

Ebay or Paypal?

I will say this that Paypal/Verisign CC processing has their fraud services all screwed up.


 12:35 pm on Jan 29, 2008 (gmt 0)

they are already located in israel since they bought shopping.com which had an israli development office


 2:00 pm on Jan 29, 2008 (gmt 0)

PayPal thrives off screwing merchants, highly doubt they're going to work on providing a better fraud detection service. They will charge random numbers as long as they make their cut.


 10:19 am on Jan 31, 2008 (gmt 0)

Israel has been long a great place for R&D arms for many of lots of companies. Microsoft, Intel, IBM, Google, Oracle, SAP and many more, all have R&D centers over there. Ebay has joined a very respected group...

Bjorn Iceland

 5:26 pm on Feb 1, 2008 (gmt 0)

Fraud Sciences (previously known as NPX Technologies) ran the Paily.com PayPal competitor for some time until closing it down late last year:

No doubt this is about their Verificator technology.

Shvat Shaked and Saar Wilf become employees of the eBay monster now, but their VC investors must be happy as they now have their exit.

Sadly, I don't think that PayPal's treatment of merchants is going to get any better because of this technology acquisition.

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