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Fraugster is a technology company.
Fraugster delivers an AI platform for fraud prevention and revenue optimization in e-commerce. It offers Fraud Management SaaS, Decisions as a Service, and Chargeback and Account Takeover Protection. The platform uses a modular AI framework, integrating data and an AI engine for precise decisions and frictionless customer experiences.
Max Laemmle and Chen Zamir co-founded Fraugster in 2014. They recognized existing payment risk technologies were outdated, a perspective shaped by Laemmle's payment gateway experience. This insight propelled them to establish Fraugster, aiming to modernize fraud detection and enhance security in global payments.
Fraugster's solutions serve diverse clients, including BNPL providers, Payment Service Providers, and various merchants. Its vision is to minimize fraudulent activities and maximize revenue for e-commerce partners. The company empowers businesses to make smarter, data-driven decisions at scale, fostering a fraud-resilient commercial environment.
Fraugster has raised $19.0M across 2 funding rounds.
Fraugster has raised $19.0M in total across 2 funding rounds.
Fraugster has raised $19.0M in total across 2 funding rounds.
Fraugster's investors include Stefan Tirtey, Target Partners, Earlybird, Munich Re Ventures, Rancilio Cube, Seedcamp, Speedinvest, Earlybird Venture Capital, Michael Breidenbruecker.
Fraugster is a Berlin-based technology company specializing in AI-driven fraud prevention for e-commerce. It builds a unified AI platform offering real-time fraud management, chargeback protection, account takeover (ATO) prevention, and compliance tools like sanctions screening, serving online merchants, payment service providers (PSPs), and industries such as gaming, travel, retail, and refurbished goods.[1][2][4][6] The platform solves the problem of online payment fraud by analyzing thousands of data points in milliseconds to approve legitimate transactions, minimize losses, and maximize revenue without disrupting customer experiences, trusted by major players like Europe's largest PSP and global gaming firms.[1][5]
Fraugster's growth momentum includes processing tens of billions in payments by 2019, partnerships with Ingenico, Worldline, and RatePAY, and a cloud migration to AWS for PCI DSS compliance, boosting development efficiency and innovation.[2][5]
Fraugster was founded in 2014 by a team of risk and payment experts, including co-founder ML (likely Markus Lambrecht based on interview context), driven by a shared vision of a fraud-free e-commerce world leveraging AI to overcome traditional fraud prevention shortcomings.[2][5][8] The idea emerged from recognizing AI's potential to combine human-like accuracy with machine scalability, analyzing transactions in real-time to detect fraud before it occurs; the founders assembled world-class experts to build proprietary technology.[5]
Early traction came from inventing an AI engine that processes transactions in 15 milliseconds, leading to contracts with leading merchants and PSPs. A pivotal moment was the 2020s cloud migration with AllCloud's AWS Accelerator, resolving physical data center limitations for PCI compliance and enabling scalable innovation.[2]
Fraugster stands out in fraud prevention through its proprietary AI platform, emphasizing precision, scalability, and seamless integration:
These features deliver higher approval rates and lower fraud costs compared to legacy systems.[1][4]
Fraugster rides the explosive growth of e-commerce and digital payments, where fraud losses exceed billions annually amid rising sophisticated attacks like ATO and synthetic identities. Its timing aligns with AI advancements in MLOps and real-time analytics, enabling merchants to combat evolving threats while regulatory pressures like PCI DSS and anti-money laundering rules intensify.[2][5] Market forces favoring Fraugster include the shift to cloud infrastructure for scalability, the demand for revenue-optimizing tools in high-risk sectors (gaming, travel), and the e-commerce boom post-pandemic, positioning it as a key enabler for PSPs and marketplaces to approve more transactions securely.[1][2][4]
By powering global players and influencing ecosystem standards through network analysis, Fraugster reduces systemic fraud, boosts merchant profitability, and supports frictionless digital economies.[1][7]
Fraugster is poised for expansion with upcoming features like Merchant Monitoring and deeper European market penetration, building on its AI edge to capture share in the $100B+ payments security market. Trends like generative AI-driven fraud, stricter global compliance (e.g., PSD3), and embedded finance will shape its trajectory, demanding continuous model evolution and partnerships. Its influence may grow by setting benchmarks in real-time AI decisions, potentially expanding to adjacent risks like crypto or BNPL, solidifying its role as e-commerce's fraud shield and revenue accelerator—echoing its founding mission of a truly fraud-free world.[1][5]
Fraugster has raised $19.0M across 2 funding rounds. Most recently, it raised $14.0M Series B in November 2018.
| Date | Round | Lead Investors | Other Investors |
|---|---|---|---|
| Nov 1, 2018 | $14.0M Series B | Stefan Tirtey | Target Partners, Earlybird, Munich Re Ventures, Rancilio Cube, Seedcamp, Speedinvest |
| Jan 1, 2017 | $5.0M Series A | Earlybird Venture Capital | Target Partners, Seedcamp, Michael Breidenbruecker |