nSure.ai raises $6.8m in seed to introduce advanced fraud prevention
nSure.ai, a predictive AI fraud protection company, focuses on the unique needs of digital goods retailers, announced a successful seed fundraising round of $6.8m, led by DisruptiveAI, Phoenix Insurance, Kamet – an AXA backed venture builder, Moneta Seeds and private investors.
These funds will go towards further developing nSure.ai’s predictive AI and machine learning algorithms that have reimagined digital fraud detection, reducing decline rates by 90% from an industry standard of declining 20% to only 2%.
Unlike physical goods, digital goods are instantly delivered and deposited. These include gift cards, top up & prepaid debit cards, software and game keys, digital wallet transfers, international money transfers, tickets, and more. Sellers of physical goods have warehouse processing times to double-check charges and can withhold a shipment if needed. Digital sellers lack this buffer, so even if fraud is detected minutes later, the assailant is untraceable, leaving sellers to absorb hefty chargeback fees.
Before founding the company in 2019, the founders of nSure.ai, Alex Zeltcer and Ziv Isaiah, experienced first-hand the unique challenges faced by retailers of digital assets. During the first week of operating their online gift card business, 40% of sales were fraudulent, resulting in chargebacks. They turned to leading fraud detection solutions from the physical goods space but soon realized that they did not meet their needs. This led them to develop a platform that focuses specifically on supporting the under-served digital goods sector.
Sellers of physical goods have access to incumbent anti-fraud technologies that prevent fraudulent charges and come with chargeback guarantees. Now, nSure.ai is bringing this technological and chargeback guarantee revolution to the digital goods sector, freeing digital goods retailers of worry and opening greater opportunities to scale.
“We believe that fraud, especially in the booming field of digital goods, can only be fought with top-of-the-line AI technologies,” said Gadi Tirosh, venture partner at Disruptive AI. “nSure.ai has both the technology and industry understanding to win this market.”
Today’s industry benchmark declines approximately 15%-20% of transactions. With accurate proven AI and a deep industry understanding, nSure.ai’s 98% approval rate reflects a more accurate fraud-detection strategy, allowing retailers to recapture nearly $100 billion a year in revenue lost by declining legitimate customers, according to CEO Alex Zeltcer.
“We are thrilled that our investors have placed their trust in our leadership and confidence in nSure.ai,” said Alex Zeltcer, co-founder and CEO. “This investment enables us to register thousands of new merchants, who can feel confident selling higher-risk digital goods, without accepting fraud as a part of business.”
nSure.ai solution currently monitors and manages millions of transactions every month, and has approved close to $1bn in volume since going live.