nsure AI Raises $6.8M Seed Funding for Fraud Protection

nSure AI Secures $6.8 Million in Seed Funding

nSure AI, a fraud protection startup, has successfully completed a $6.8 million seed funding round. The investment was spearheaded by DisruptiveAI, Phoenix Insurance, Kamet (backed by AXA), Moneta Seeds, and a group of private investors.

Advancing Predictive AI Capabilities

This new capital injection will be utilized to enhance the predictive AI and machine learning algorithms that underpin nSure AI’s innovative fraud protection platform. Previously, the company secured $550,000 in pre-seed funding from Kamet back in March 2019.

Focus on High-Risk Digital Goods

Headquartered in Tel Aviv, nSure AI currently employs 16 individuals. The company specializes in fraud detection for digital goods considered high-risk, including electronic gift cards, airline tickets, software, and video games.

Unlike conventional fraud detection systems that evaluate individual transactions, nSure AI employs deep learning to precisely pinpoint fraudulent activity.

High Approval Rates and Financial Impact

Backed by insurance giant AXA, nSure AI boasts an average purchase approval rate of 98%. This significantly exceeds the industry standard of 80%.

This higher approval rate allows retailers to potentially recover approximately $100 billion annually in revenue that would otherwise be lost due to the rejection of legitimate customers.

nSure AI demonstrates strong confidence in its technology by assuming liability for any fraudulent transactions that its platform allows.

Origins and Founding Story

The company was founded by Alex Zeltcer and Ziv Isaiah, who identified a critical need within the digital asset retail sector. Their initial venture, an online gift card business, experienced a 40% fraud rate in its first week, leading to substantial chargebacks.

Unable to find an existing fraud detection solution that adequately addressed their specific challenges, the founders embarked on developing their own platform.

Future Growth and Expansion

According to Alex Zeltcer, co-founder and CEO, the recent investment will “enable us to register thousands of new merchants.” These merchants will be empowered to confidently sell higher-risk digital goods without accepting fraud as an inevitable business cost.

Transaction Volume and Performance

Currently, nSure AI actively monitors and manages millions of transactions each month. Since its launch in 2019, the platform has processed nearly $1 billion in transaction volume.

The company’s technology is designed to minimize false positives and maximize legitimate sales.