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eBay's PayPal to buy Fraud Sciences

In deal valued at $169 million, Fraud Sciences' technology will be incorporated into next-generation fraud detection tools at eBay, PayPal.

Dawn Kawamoto Former Staff writer, CNET News
Dawn Kawamoto covered enterprise security and financial news relating to technology for CNET News.
Dawn Kawamoto

Correction 9:30 a.m. PST: This blog initially misstated the day the deal was announced. It is Monday.

eBay company PayPal announced Monday it plans to acquire Fraud Sciences in a cash deal valued at $169 million.

Fraud Sciences, a privately held Israeli company, will lend its online risk tools and analytics to both eBay and PayPal's fraud management systems. Fraud Sciences' technology will also be baked into the companies' next-generation fraud detection tools.

Just last June, eBay was busy trying to nab fraudsters in Romania. The company said thieves were trying to lure losing bidders off the eBay site to give them the proverbial "second chance" to win the item they were bidding on.

Several months earlier, the FBI arrested a Bulgarian woman for allegedly bilking eBay users out of $350,000 for expensive goodies that they never received.

Needless to say, eBay is looking to take the Fraud Sciences technology and meld it into its plans this year to improve the trust and safety of its sites, including PayPal.

The Fraud Sciences deal is expected to close within the next 30 days.