Microsoft Corp. today said it has invested in an Israel- and Boston-based startup called nsKnox Technologies Inc. that sells software designed to secure corporate payments.

The investment was made via Microsoft’s M12 venture capital arm, which led a $15 million Series A round of funding in the startup. Viola Ventures and Discount Capital, the investment arm of Israel Discount Bank, also participated.

NsKnox sells technology that allows companies to validate payment authenticity, verify senders and receivers, and identify and prevent any transaction fraud.

The company reckons that these kinds of services should be useful, citing a report that found 78 percent of enterprises fell victim to some kind of payment fraud in 2017.

The company’s software is called TxAuthority, which analyzes each point of a digital transaction in order to provide real-time data on suspicious or malicious behavior that might indicate a fraudulent transaction. It can defend against cyberfraud, internal fraud and social engineering, according to the company’s website. The software can also enforce payment policies and compliance rules.

NsKnox officials said in a statement they’ll use the funds for further development of TxAuthority and expand their global customer base.

“The evolving nature of cybercrime creates a perpetual challenge for businesses to detect and mitigate fraudulent behavior, which costs corporations significant amounts of money every year,” Lior Litwak, principal at M12, said in a statement. “nsKnox’s corporate payment solution solves a critical business issue at scale, saving businesses the time, money and headache that result from fraudulent threats.”

Microsoft’s M12 fund has backed startups in a range of technology fields, including security, artificial intelligence, cloud computing, “internet of things,” machine learning and robotics. It has invested in more than 70 startups.

M12’s decision to invest in nsKnox isn’t all that surprising considering the startup’s ties with Microsoft. Three of its 23 employees worked at the Redmond firm previously, including Chief Executive Officer Nir Tenzer.

Image: nsKnox