Predictive artificial intelligence fraud protection startup nSure.ai Ltd. has raised $6.8 million in new funding to further develop its AI and machine learning algorithms. The seed round funding included DisruptiveAI, Phoenix Insurance, Kamet – an AXA-backed venture builder — Moneta Seeds, and other private investors.
The funds will go towards further developing nSure.ai’s predictive AI and machine learning algorithms that have reimagined digital fraud detection, reducing decline rates by 90 percent from an industry standard of declining 20 percent to only 2 percent.
Founded in 2019, nSure.ai uses advanced AI technology to provide merchants insurance-backed fraud detection for digital goods. The service was developed with a focus on high-risk digital good sellers such as electronic gift cards, airline tickets, concert tickets, sports tickets, money transfer apps, hotel vouchers, software, games, etc., who suffer from high rejection rates, losing safe sales and genuine customers.
Before the launch of nSure.ai in 2019, the founders Alex Zeltcer and Ziv Isaiah experienced first-hand the challenges faced by retailers of digital assets. During the first week of its online gift card business operations, 40 percent of sales were fraudulent, resulting in chargebacks.
Transition from physical goods space to digital space
The founders turned to fraud detection solutions from the physical goods space but soon realized that they did not meet their needs. It led to developing a platform that focuses on supporting the under-served digital goods sector.
The physical goods sellers have access to incumbent anti-fraud technologies that prevent fraudulent charges and come with chargeback guarantees. Now, nSure.ai gives this technological and chargeback guarantee revolution to the digital goods sector, freeing digital goods retailers of worry and opening greater opportunities to scale.
“We believe that fraud, especially in the booming field of digital goods, can only be fought with top-of-the-line AI technologies,” says Gadi Tirosh, Venture Partner at Disruptive AI. “nSure.ai has both the technology and industry understanding to win this market,” he added.
The company’s service claims to reduce fraud rates to only 2% of transactions, compared with an industry standard of 15% to 20%. nSure.ai’s 98% approval rate reflect a more accurate fraud-detection strategy, allowing retailers to recapture nearly $100 billion a year in revenue lost by declining legitimate customers, according to Chief Executive Officer Zeltcer.
NSure.ai has seen strong growth in its two years, currently monitoring and managing millions of transactions every month, and has approved close to $1 billion in volume since going live. “This investment enables us to register thousands of new merchants, who can feel confident selling higher-risk digital goods, without accepting fraud as a part of business,” Zeltcer added.