Equifax to tackle e-commerce fraud with $640M Kount deal

Equifax to tackle e-commerce fraud with $640M Kount deal

Risk Disclaimer >>
Ad disclosure Fintech-Insight stands firm in its mission to facilitate sound financial decisions for you. We forge alliances with specialists to provide the latest in news and facts. Engagement with designated links, sponsored entries, products and/or services, leading transfers to brokers, or promotional content might entail financial recompense for us. We pledge to protect our users from any negative repercussions arising from utilizing our site. Be informed that no content hosted here should be interpreted as authoritative in legal, tax, investment, financial matters or any expert counsel; it is meant for informational purposes exclusively. Should there be any concerns, securing the guidance of an independent financial consultant is recommended.

Equifax agreed to acquire Kount, which offers fraud protection for e-commerce retailers, for $640 million.

The transaction is expected to close in the first quarter, Atlanta-based Equifax said in a statement Friday. Kount’s employees will continue to be based in Boise, Idaho, and will report to Equifax’s U.S. information solutions unit.

Michael Nagle/Bloomberg

The credit reporting firm has been building out its identity and fraud protection business for existing customers, which include many of the world’s largest banks and telecommunications companies. With Kount, the company will begin selling those same services to e-commerce sites.

“There’s been an explosion in the last three to four years of consumers doing everything online and that’s only accelerated during COVID,” Equifax Chief Executive Mark Begor said in an interview. “What comes with that is the challenge of making sure that individual who’s trying to complete that transaction, apply for that credit card, buy that product online, is really that individual.”

Many of the world’s largest retailers have seen their fraud costs balloon in recent years as hackers have increasingly set their sights on using stolen credit card information online. Kount’s software helps retailers catch those fraudsters as well as stop hackers from taking over customer accounts.

Equifax will also be able to use Kount’s data to help its existing customers manage fraud. Kount’s network uses data from more than 17 billion unique devices and 5 billion transactions annually made across 200 countries and territories, Equifax said in the statement.

Risk Disclaimer

Fintech-Insight is dedicated to delivering unbiased and dependable insights into cryptocurrency, finance, trading, and stocks. However, we must clarify that we don't offer financial advice, and we strongly recommend users to perform their own research and due diligence.

Leave a Reply