Online payments startup WePay is launching Veda, an intelligent social risk engine that leverages social media data and traditional business data to catch merchant fraudsters. Veda uses data from social networks such as Facebook, Twitter and Yelp coupled with proprietary algorithms to mine and analyze a merchant’s social signals to gain a more accurate picture of risk.
As fraudsters attempt to steal billions of dollars online more often they set up an account acting as a merchant, and will solicit payments from consumers. So payments companies like WePay have to conduct in-depth security assessments to determine whether a merchant isn’t attempting to commit fraud.
Veda is a more data-focused way to underwrite merchants and make sure they are actually verified sellers. Veda needs five pieces of information (versus the 21 some payment companies require) to get started: first name, last name, name of business, email address, and phone number.
The average eCommerce retailer losses more than 3 percent to fraud each year, but WePay is hoping it has a solution for its merchant customers with Veda. WePay says Veda has successfully stopped $30 million in attempted fraud by analyzing more than 250,000 transactions per month.
Founder Bill Clerico says, “A traditional credit score only shows a sliver of who you are, but an online profile allows us to assign our users a more accurate ‘WePay credit score’ based on their personal history of verified, social data. Veda’s intelligent brain is the new, smarter way to assess risk.”
WePay has raised a total of $20 million, including a $10 million round led by Ignition Partners. Other investors include Highland Capital Partners, August Capital, and angels such as Levchin, Ron Conway, Dave McClure, and Steve Chen.
Check out https://www.wepay.com/