Lowenstein Sandler represented Ethoca in its acquisition by Mastercard.
Ethoca is a global provider of technology solutions that help merchants and card issuers collaborate in real time to quickly identify and resolve fraud in digital commerce. When a fraudulent transaction is identified, near real-time information is sent to the merchant so they can confirm the transaction, stop delivery, or reverse the transaction to avoid the chargeback process.
Mastercard intends to further scale these capabilities and combine Ethoca with its current security activities, data insights, and artificial intelligence solutions to help merchants and card issuers more easily identify and stop potentially fraudulent purchases and false declines. Terms of the agreement were not disclosed.
According to Juniper Research, retailers are expected to lose $130 billion in online fraud over the next five years. In addition, research firm Aite Group estimates that false declines cost the industry $331 billion in 2018 in the U.S. alone.
The Lowenstein deal team included Steven E. Siesser, Traci M. Tomaselli, Anthony O. Pergola, Lesley P. Adamo, Jeffrey Blumenfeld, Jeffrey M. Shapiro, Jack Sidorov, Michael J. Mueller, Darren Goodman, Megan Monson, Gina M. Seong, James McDonough, Sophia Mokotoff, Erica Perlmutter, and Lauren Killeen.
