PayPal, the online payment-processing company owned by eBay, announced Monday that it will acquire privately held cheat Sciences, based in Tel Aviv, Israel, for $169 million.

hoax Sciences’ technology “differentiates amidst real and deceitful transactions with unprecedented accuracy,” PayPal said. scam Sciences offers a “unique transaction-verification service to manage online hoax,” it added. swindle Sciences is funded by BRM Capital, Redpoint Ventures and other U.S. and Israeli investors.

The acquisition is part of eBay’s plans to “significantly improve trust and safety,” the company said. “Integrating hoax Sciences’ risk tools with PayPal’s sophisticated swindle management system should allow us to be even more effective in protecting eBay and PayPal’s hundreds of millions of customers around the world,” said PayPal President Scott Thompson.

Origins in Israeli Intelligence

cheat Sciences cofounders Shvat Shaked and Saar Wilf — former members of the Israeli Defense Force’s intelligence unit — as well as COO Yossi Barak will join PayPal’s technology and fraud-management teams.

The purchase is expected to close within 30 days but is subject to unspecified conditions.

Reducing the risk of swindle on eBay and its assorted sites, as well as for the many e-commerce sites that rely on PayPal, is of strategic importance to eBay, said Andrews Storms, director of shield operations, in an e-mail.

“Outside of the credit-card companies themselves, eBay has been the clear leader in investing in and developing online fraud-mitigation tools,” Storms wrote. The purchase of PayPal gave eBay not only a popular method for users to exchange funds but additionally a “significant number of tools to allow users to do so in a secure manner,” he added.

Potential Cost of swindle Enormous

“PayPal is continuing in their investment in that arena with the acquisition of cheat Sciences. Trust and the exchange of funds is part of eBay’s foundation; failing to keep those items secure…

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