Riskified, a startup focused on preventing eCommerce fraud, is considering an initial public offering (IPO) that could come this year, Bloomberg reported Thursday (May 6), citing sources.
The company is working with Goldman Sachs on the potential listing, but still hasn’t decided on an IPO and plans could still change, per the news outlet.
Riskified is considering this move at a time when fraudsters are changing their tactics to make the most of the COVID-fueled boom in eCommerce.
As PYMNTS reported last year, these criminals have abandoned the traditional “spray and pray” method of targeting dozens — or even hundreds — of smaller transactions with stolen payment data in favor of a few tightly-focused attacks aimed at larger targets.
And that’s something consumers take seriously. PYMNTS research has found that 65 percent of eCommerce customers say that falling victim to just one data breach would be enough for them to permanently part ways with the merchant in question. Another 48 percent say they are more worried about eCommerce-related fraud than they were before the pandemic.
Last year, major online merchants like eBay and Amazon saw an average of 344 fraud attempts per month, an increase of 24 percent from the previous year. Fraud prevention techniques have become less effective, with just over 34 percent of fraud attacks foiled in 2020 compared to roughly 56 percent the year before. Read our Deep Dive into fraud protection to learn more.
Goldman and Riskified both declined to comment on the Bloomberg report. Riskified clients include Wayfair Inc., Canada Goose Holdings, Prada SpA and Gymshark. Founded in Israel, Riskified is now based in New York City.
A funding round in 2019 valued it at more than $1 billion, with investors that include General Atlantic, Fidelity Management & Research and Winslow Capital, along with Qumra Capital, Pitango Venture Capital and Entree Capital.