Munich Re Partners With Fraugster to Combat Online Fraud
German-Israeli startup Fraugster, established in 2014, has developed an algorithm that checks in milliseconds whether online payment transactions are fraudulent to allow online sellers to approve transactions faster. Bottom Line Up Front: Munich Re has tested the algorithm and is also insuring it (via its subsidiary Great Lakes Insurance SE), should the software return incorrect results.
“With several million transactions passing through Fraugster’s system each day, our AI technology ensures that the product offered is very secure. The cooperation with Munich Re will make a significant contribution to our new AI-based product reaching e-commerce markets around the globe” – founder and CEO of Fraugster, Max Laemmle.
“There is enormous growth potential for further cooperation between Fraugster and Munich Re. Fraugster’s clients already make up around 4% of online sales worldwide, with a volume of roughly €100 billion. Fraugster’s self-learning algorithm improves with each checked transaction, and thus the system is continually honing itself and adapting to changes.”