PayPal Acquires Fraud Sciences

This is really good news for PayPal customers. When it comes to protecting our money and our data, you can never have too much security.

EBay’s online payments division, PayPal, will pay $169 million for an Israeli security company specializing in detecting online fraud, the companies said Monday. The deal should close within 30 days.

Fraud Sciences, a private company, has developed technology designed to differentiate between real and fraudulent transactions. That technology will be folded into PayPal’s antifraud systems, which will be “significantly” improved this year, eBay said.

Fraud Sciences’ Chief Operating Officer, Yossi Barak, and founders Shvat Shaked and Saar Wilf will move to PayPal’s technology and fraud management teams.

I have to admit, the steps PayPal took over the past year were very good. The keychain dongle is my favorite new feature, although it’s a pain in the ass when I forget to take it with me and I want to check my balance from the car. When is PayPal going to get into the insurance business? I would love to pay my car or home insurance via PayPal.