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PayPal is acquiring Fraud Sciences, an Israeli developer of online risk tools.
The £85m acquisition is designed to enhance PayPal's fraud management systems and those used by parent company eBay.
Fraud Sciences COO Yossi Barak, and founders Shvat Shaked and Saar Wilf, will join PayPal's technology and fraud management teams.
The acquisition is expected to close within the next 30 days, said PayPal.