Israeli real-time fraud prevention tech startup nSure.ai raises $18M in funding to provide guaranteed chargeback coverage to merchants
As online marketplaces boom, fraudsters are taking advantage of outdated fraud-prevention systems that weren’t developed to manage the sales of FinTech products, crypto, NFTs, and other virtual goods. For digital goods, such as gift cards, gaming, crypto, financial services, and airline tickets, the seller is unable to recoup the lost goods.
This forces online retailers to sacrifice up to 30% of sales, making them responsible for lost goods, regardless of their costly security tool. nSure.ai has already proven itself in the prepaid and gaming sectors and is actively securing other sectors, offering guaranteed chargeback protection to all clients. Now a Tel Aviv, Israel-based tech startup is on a mission to use AI to provide insurance-backed protection to sellers of digital goods.
Enter nSure.ai, the world’s first fully automated chargeback guarantee platform and provider of a real-time fraud protection intelligence that reduces decline rates by 90%, using merchant-specific data to approve up to 98% of transactions. compared to the 20% industry average, nSure.ai predictive AI fraud detection is so accurate, that it only has a decline rate of just 2% of merchants’ total sales, the company said.
To further grow its platform, nSure.ai announced today it has raised $18 million in Series A funding led by MoreTech Ventures, with participation from DisruptiveAI, Gryffin Ventures, and Moneta Seeds. nSure will use the fresh capital infusion to extend its anti-fraud, chargeback-free guarantees while meeting the growing demand from various sectors that are lacking a sufficient fraud prevention system.
Founded by Alex Zeltcer and Ziv Isaiah, nSure.ai is a real-time fraud protection solution made for sellers of digital goods and services that are attractive to fraudsters. This includes highly tradable digital goods such as gift cards, crypto payments, NFTs, digital wallets & banking services, airline tickets, software, games, and more.
The company’s patented predictive AI technology has already been tested at scale, and handles transaction value of hundreds of millions of dollars every year. nSure.ai provides the only true chargeback guarantee for digital goods, helping sellers reduce decline rates, increase revenue and improve customer satisfaction.
Blazing the trail for the future of digital transactions, nSure.ai has implemented AI-driven Fraud Prevention Intelligence. This system continuously evolves along with the threat landscape to guarantee that all legitimate transactions are approved, and that ~2% of fraudulent charges are kept out.
“FinTech companies powering wallets and crypto-based services offer an immediate transfer of funds, creating a huge incentive for sophisticated fraudsters and scalable fraud patterns,” said Alex Zeltcer, Co-founder and CEO of nSure.ai. “Standard, e-commerce based fraud prevention platforms are ill-equipped to deal with this new market. Merchant-specific AI models, along with real-time anomaly detection, such as the ones we offer, help these new generation companies on their growth without taking excessive risk.”
nSure.ai has experienced demand across industries, with customers experiencing up to a 25% uplift following activation. “This round of funding is allowing us to scale our technology along with in-house services,” said Isaiah, co-founder, and CTO. “Our team is growing to onboard more companies, while in parallel, our technology will be able to accommodate more industry-specific requests as we scale.”
“nSure.ai is the first to bring a dedicated product to safeguard merchants selling digital goods – a rapidly growing market, yet exceptionally difficult to protect against fraud,” said Sam Bernstein, Partner at MoreTech Ventures. “Driven by machine learning, nSure.ai’s customers get a customizable solution, maximizes approvals, reduces friction, and a revenue model that is fully aligned with their needs. nSure.ai saw tremendous traction delivering 500% in revenue growth in slightly over a year. Bottom line, merchants selling digital goods need nSure.ai.”