Riskified
An Israeli fraud prevention company that built its business model on paying up when it gets things wrong.
Eido Gal and Assaf Feldman founded it in Tel Aviv in the early 2010s, and it listed on the NYSE in 2021. The novelty was not the technology, which is the usual mix of machine learning and device data, but the guarantee. Riskified reviews each order, and if an approved purchase later turns out to be fraud and comes back as a chargeback, Riskified eats the loss. Its fee is a percentage of approved orders.
That flips the incentives. A merchant carrying the risk itself declines too much, and false declines often cost more in lost sales than the fraud ever did. A vendor paid per approved order wants to approve as much as possible, but no more than it can afford to refund.