E-commerce has created endless opportunities for merchants to reach customers and grow their businesses online. But along with that boom in business, it has also opened up a new avenue for cyber criminals to defraud consumers and merchants alike.
Online retailers lose an average of over 7 percent of their annual revenue to fraud each year. That’s why robust fraud protection is so vital for any company wanting to do business online.
When it comes to foiling fraudsters, e-commerce fraud prevention specialists at Forter are leading the way by using a unique blend of techniques adapted from the Israeli military, artificial intelligence (AI) and human analysis.
A Vision of Fraud-Free E-Commerce
Forter CEO and co-founder, Michael Reitblat, was trained in cybersecurity techniques and fraud prevention while working in Israeli military intelligence. He went on to play a key role in building Fraud Sciences, the first company to specialize in online payment fraud. After that company was acquired by PayPal, Reitblat continued to develop their successful fraud prevention system for years, working to realize his vision of fraud-free e-commerce.
In 2013, Reitblat partnered with Liron Damri and Alon Shemesh to found Forter. The company’s first office was located on the first floor of a gas station, but today Forter is the leading e-commerce fraud prevention company. In the past year alone, they’ve doubled their customer base, processed over $50 billion in transactions and been recognized on the Forbes Fintech 50 list as well as Fast Company’s Most Innovative Companies list. Damri is now Forter’s COO, while Shemesh serves as Chief Analyst.
Completely Automated Fraud Prevention
Forter’s impressive growth is largely due to their visionary approach to fraud prevention. While other companies in the cybersecurity space rely on outdated technology that slows down the checkout process and provides a clunky, often inaccurate approval process, Forter uses cutting edge technologies to provide highly accurate, real-time fraud decisions at every stage of the customer life cycle, from account creation to checkout.
By combining the best of human and machine, Forter has been able to fully automate fraud prevention—a concept that no other company has successfully brought to the market. This allows them to identify suspicious behavior and catch criminals before they strike, all while providing full chargeback coverage. Forter helps provide a smooth, safe checkout experience for customers with almost no false alarms, all at a lower cost than other companies can offer.
More Sales, Happier Customers
Companies with high rates of fraud not only lose their customers’ trust, they ultimately damage their brand’s reputation. Nearly 70 percent of consumers say they would boycott—or have boycotted—a company for failing to protect their private data. This is why it’s so vital that online merchants employ reliable and effective fraud prevention tactics.
Forter aims to provide top-notch service to each client, getting to know them inside and out so that they can provide them with the tools they need to protect their customers, all while offering the best possible customer experience. Their integration system also allows clients to track fraud protection performance from the back end, so they can see how Forter is working for them.
The Fraud Attack Index
Forter has just released its fifth annual Fraud Attack Index, which analyzes millions of e-commerce fraud attacks—both successful and unsuccessful—since the first quarter of 2017. This year’s report shows an alarming increase in attacks, as well as shedding light on a wide variety of methods used by cyber criminals to commit fraud.
Due to factors like massive data breaches, an increase in online and mobile transactions and more sophisticated schemes by fraudsters, including bots and automation, fraud attacks have gone up 13 percent over the past year, according to the Fraud Attack Index. “Our newest Fraud Attack Index demonstrates just how important it is to monitor for fraud attacks throughout the customer journey as opposed to simply at the point of transaction,” says Reitblat.
Representing Clients Across the Board
Forter works with Fortune 100 retailers, travel companies, online marketplaces and startups, representing clients in many different industries: apparel and accessories, electronics, digital goods, food and beverage, luxury goods and jewelry.
Since their founding, they’ve secured over $50 million in funding from some of the world’s top venture capital firms, such as Sequoia Capital, New Enterprise Associates and Scale Venture Partners.