Dedicated to researching and examining the ideas, people, and companies using technology to change financial services, earlier this year, the LTP Team launched MEDICI Top 21 – AI to identify and showcase the most innovative AI startups disrupting the financial services industry across the globe.
The MEDICI Top 21 series has already seen tremendous traction with the two previous competitions: MEDICI Top 21 Blockchain and the MEDICI Top 21 InsurTech respectively launched in May and August 2016. With the latest edition of MEDICI Top 21 series, we analyzed 300+ companies, and after rigorous screening & evaluation by our selected team of judges and our in-house experts, the LTP team was delighted to announce the Top 21 Winners – across three regions: EMEA, APAC, and the Americas.
LTP: Max, please tell us about yourself.
Max Laemmle: My name is Max Laemmle and I am the CEO & Founder of Fraugster. Before founding Fraugster, I founded the payment gateway company Better Payment and was the product evangelist at the mPOS company SumUp.
LTP: Give us a paragraph pitch of your company. In a few sentences, what problems are you solving today?
Max Laemmle: Fraugster is a German-Israeli payment security company founded in 2014 by our CTO Chen Zamir and myself.
After years of working in the payments industry, we experienced first-hand the challenges of fraud for e-commerce merchants. Our journey began with the vision to design and build an anti-fraud technology that could help create a fraud free world – one where e-commerce merchants never have to care about managing risk again.
Our team of intelligence and payment experts spent the last several years designing a proprietary technology from scratch – the result is an advanced artificial intelligence technology which can not only eliminate payment fraud but also maximize revenues by reducing the false positive ratio significantly.
LTP: Who are you selling to?
Max Laemmle: We operate across the globe and are currently responsible for tens of billions of dollars for our clients. Our products are used and trusted internationally by leading payment companies such as Ingenico, Wirecard, and Credorax.
Fraugster is a true partner to payment service providers and payment acquirers. We provide an anti-fraud solution for their entire merchant portfolio.
LTP: How does Fraugster differentiate from existing technologies?
Max Laemmle: Our solution not only eliminates fraud but also gives merchants a heavy revenue uplift.
Existing rule-based systems, as well as classical machine learning solutions, are expensive and slow to adapt to new fraud patterns in real-time. These outdated solutions work to reduce fraud but they aren’t accurate which results in blocking too many good customers, creating false positive ratios that really impact a merchant’s bottom line.
Fraugster’s technology combines the thought processes of human analysts with machine scalability, identifying new fraud patterns as they emerge in real time, making it possible to detect fraud before it costs merchant damage.
LTP: In the MEDICI Top 21 AI competition Fraugster reached such a good positioning. The factors that judges appreciated the most have been replicability to countries and customer segments, the uniqueness of innovation, and disruptiveness of the solution on customers and existing value chain. Which factors do you think the judges have considered to do that evaluation and what have they seen in your business?
Max Laemmle: I can’t speak for the judges but I would say Fraugster is a combination of all of these factors. Our product is global and completely scalable, no matter the size of business, and works anywhere in the world, on any device, of any volume, at any time. We found that all existing anti-fraud solutions were built on outdated technologies and therefore not good enough to deal with sophisticated cyber criminals. With Fraugster merchants no longer have to sacrifice revenue for security. We have built and developed our technology to specifically solve the problem of fraud and fraud-related issues for the payment industry.
LTP: What’s your next milestone?
Max Laemmle: As I said before we are already processing tens of billions of US dollars. Our next goal is to become the global market leader in payment security for e-commerce merchants.
LTP: How do you see the future of AI in payments?
Max Laemmle: With more and more data available, AI will become a major component of the payment industry. Companies who use AI are more profitable, more accurate and more scalable. Many companies who are still using outdated technologies will die in the next 10 years because AI-driven companies will outperform them tenfold.