After many people lost their trust in the integrity PayPal once had, the online financial transactions firm announced on Monday that they just purchased an Israeli company that specializes in uncovering fraud. Silicon Valley analyst Rob Enderle of Enderle Group takes the new acquisition as a very good investment that will build trust in PayPal and eBay services and transactions. Owned by veteran Internet auction service eBay, PayPal lost much of the clients' trust due to the so called phenomenon "phishing"- bogus e-mails sent by scammers to trick people into divulging passwords or other sensitive information linked to accounts. Therefore in order to regain its integrity and also to have better advantages in the competition it faces from popular Internet firms Google and Craigslist, which offer ways for people to sell items online, PayPal signed a deal with Fraud Sciences Ltd. And the purchase will be complete in less than 30 days. PayPal president Scott Thompson did not revealed details of the acquisition except that it will cost them 169 million dollars and that the company's expertise will be used to expose scams and deceptions targeted at PayPal and eBay users. Also, due to a clause of the deal Shvat Shaked and Saar Wilf, Fraud Science founders, and its chief operating officer Yossi Barak, will become part of PayPal's fraud management team. By improving its fraud detection, PayPal has a wider range of opportunities including to expand into more types of financial services on the Internet. Analysts perceive the purchase as a step towards the regain of the firm's integrity and to a revival of it. The safer it becomes, the more used it will be. Still, I would advice to wait and see the result before doing anything. Don't go away, more to come!
Edited by: Katarina Bosanska
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