Sift Science Raises $5.5 Million In Seed Funding

Sift Science is a company that has raised $5.5 million in funding to help fight fraud.  Investors that participated in this round include Y Combinator, SV Angel, Start Fund, Alex Rampell, Harj Taggar, Garry Tan, Lee Linden, Kevin Scott, Alexis Ohanian, Rich Barton, Union Square Ventures, First Round Capital, Founder Collective, Max Levchin, Chris Dixon, Marc Benioff, and several others.  Sift Science has created technology that helps e-commerce companies, payment companies, and retailers detect fraudulent activity.  Albert Wenger of Union Square will be joining Sift’s board of directors.

Brandon Ballinger, a co-founder of Sift Science and former Google employee, said that the algorithm that Sift Science uses can detect one million different patterns to predict fraud using “large-scale machine learning.”

Sift Science works with merchants like Ribbon and Airbnb to make sure that their e-commerce transactions are legitimate.  Sift Science was incubated by Y Combinator.  Customers can sign up with Sift Science for free and they can verify up to 5,000 transactions per month at no charge.

The company plans to use the funding to hire additional talent.  There are currently about 9 full-time employees and they expected to double their staff by the end of the year.

Developers can integrate Sift Science’s services into their website by creating a backend user and inserting a snippet of JavaScript into their page.  Privacy is guaranteed and the transactions collect some personally identifiable information to be reviewed by staff.  They do not collect any financial information like credit card numbers or security codes.

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