eBay's PayPal company announced that it intends to acquire Fraud Sciences, a privately-held Israeli-based maker of anti-fraud technologies. PayPal will pay approximately $169 million in cash for the company.

Fraud Sciences screens electronic transactions to verify that "a customer is who they they represent themselves to be." The company said that its technology is so good that less than 1 fraudulent transaction per 1000 verified transactions gets past its screening system. eBay and PayPal intend to integrate the technologies into their own proprietary fraud management systems.

"Integrating Fraud Sciences' risk tools with PayPal's sophisticated fraud management system should allow us to be even more effective in protecting eBay and PayPal's hundreds of millions of customers around the world," said Scott Thompson, President of PayPal.