PayPal’s acquisition of Fraud Science Ltd.

February 1^st, 2008 eBay's officials have confirmed PayPal's agreement to acquire Fraud Science Ltd, privately owned Israeli company that at present time is considered one of the leading innovative companies in developing online risk tools, in cash transactions with estimated transaction value exceeding $169 million. As it is expected the acquisition of Fraud Science Ltd would enhance and considerably perfection  fraud management system of both companies, Paypal and eBay, and, in return, would accelerate  the development of new level of fraud detection tools and would increase the trust and confidence of the users.

President of PayPal Scott Thompson declared that "integrating Fraud Science's risk tools with already existing PayPal sophisticated fraud management system would allow PayPal and eBay to become even more protective and more effective in preventing millions of users from fraudulent transactions." Fraud Science Ltd has developed a technology that is able to determine the difference between real and fraudulent transactions with adequate and surprising level of accuracy. It offers a non-comparable transaction verification service that would help to provide users with unprecedented fraud management system.

As it has been announced the deal would be closed in nearest 30 days. EBay's officials  don't expect any significant material impact on its 2008 financial outlook. However, the increased quotes for listing items on eBay have slightly increased despite the promise of online giant to low them down. Was it a fundraising campaign preparing this acquisition?

Natalia, reporter of Ecommerce Journal