eBay acquires AI fraud detection firm

Online marketplace eBay has acquired 3PM Shield, a company that provides AI-based marketplace compliance solutions, for an undisclosed sum.

The AI platform’s technology will enable eBay to better spot suspicious or malicious sellers on its platform, as well as fraudulent or potentially problematic items, the marketplace said.

The moves comes after a 2020 survey from Red Points revealed that 50% of shoppers would request a refund if they purchased fake items and nearly half said they would also write warning reviews about the fraudulent sellers.

eBay hopes the partnership will help it maintain and build trust among its merchants and customers.

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“It is a top priority to help ensure that eBay remains a safe and trusted environment for our global community of sellers and buyers, particularly to prevent counterfeits and unsafe or illegal products,” eBay chief risk officer Zhi Zhou said.

3PM Shield has been a valued and effective external partner in helping eBay tackle these challenges and we look forward to unlocking additional capabilities as we bring their technologies in-house.”

3PM Shield founder and chief executive Robert Dunkel added: “3PM Shield was founded to provide next-generation ecommerce monitoring to protect trust in the buyer and seller relationship.”

“We’re proud to partner with eBay, and I am excited that eBay’s investment will help us accelerate the impact of our cutting edge technology to combat counterfeits, unsafe products and illegal items.”

After recently laying off workers, eBay has made several acquisitons, including non-fungible token platform KnownOrigin last June and technology platform TCGplayer two months later.



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