Walmart in Talks to Acquire Israeli-Founded AI Startup to Combat Counterfeits and Online Scams

U.S. retail giant Walmart is preparing to take a major step to tackle the rising problem of counterfeit products, online scams, and non-compliant listings on its marketplace. According to reports, the company is in advanced discussions to acquire Israeli-founded AI startup “R&A Data.”

R&A Data, founded in 2022 by two former Israeli intelligence officers — Noam Rabinovich and Raz Abramov — is an advanced technology company specializing in AI-based detection of counterfeit items, scams, and compliance violations on online marketplaces. The startup has already been providing services to Walmart since 2024.

Through this potential acquisition, Walmart aims to make its e-commerce marketplace safer, more reliable, and fraud-free. In recent years, the number of third-party sellers on Walmart’s platform has grown significantly, bringing with it increased challenges related to fake products and fraudulent listings.

Industry analysts believe that this deal could give Walmart a strategic advantage, especially at a time when competition in the online retail space is rapidly intensifying. With incoming CEO John Furner planning to expand Walmart’s marketplace business, this technology could become a major turning point for the company.

However, the financial terms of the deal have not yet been disclosed, and both Walmart and R&A Data have declined to comment in detail.

If finalized, the acquisition would allow Walmart to elevate its AI-powered security capabilities, strengthening its ability to detect and prevent counterfeit products and scams — ultimately boosting trust among both customers and brands.