Forter builds an AI-driven platform that identifies fraud at the point of transaction and reduces false positives to keep legitimate customers transacting. The company’s models learn from a network of signals to approve more valid purchases and block malicious activity, claiming an 80% reduction in declines and a 60% drop in chargebacks. Forter works with roughly 350 large customers, including Priceline and Instacart, and its systems saw about $250 billion of transactions globally last year. The company has expanded capability through acquisitions such as Stripe’s Bouncer to strengthen its anti-fraud product. Management says it is investing to bring more functionality into the product and is exploring remediation after fraud occurs as a roadmap priority. Forter plans geographic expansion and may pursue further organic development or acquisitions to extend its offerings. Forter offers a real-time, fully automated fraud prevention platform powered by a rapidly growing Global Data Network and predictive fraud modeling. The platform detects fraudulent activity across online consumer experiences and enables tailored solutions for merchants and payment providers. Its network doubled in size over the past 12 months to exceed $200 billion in annual online transactions and protects over 800 million shoppers. Product offerings include Loyalty Program Fraud Protection, Returns Abuse Protection, Smart Routing (which reduces lost revenue by 50%), and a Fraud Prevention Platform for payment service providers. Forter has partnerships and integrations with Mastercard, SAP, Salesforce and Adobe, and works with merchants including ASOS, Boohoo, Sephora and Hugo Boss. The company says it doubled revenue, doubled its team across eight global offices, recorded its first cash flow positive quarter, and plans to expand its suite of solutions and global data network to build an ecosystem of trust across merchants, banks and payment providers. Forter provides an identity-based fraud prevention solution that detects fraud and abuse across transactions and account activity in real-time using machine learning and human domain expertise. The company leverages a growing identity database covering more than 180M U.S. shoppers and reports that over 95% of transactions it processes are by consumers who previously interacted with its network. Forter processes more than $50B of transactions annually and has tripled its customer base in the past 12 months. The product is used by Fortune 500 retailers, leading travel companies, and digital disruptors across the U.S., Europe, and Asia. Forter recently expanded into Europe with a UK office in London and says it will double its investment in research and development and expand global coverage. The company also continues to grow its management team and client base in the region. Forter offers a Decision-as-a-Service platform that analyzes transactions at checkout to detect and prevent online fraud. The company guarantees retailers 100% protection against chargebacks it deems fraudulent. Forter cites research claiming roughly 2.7% of online transactions are attempted fraud and says the majority of chargebacks are “friendly fraud.” Customers report meaningful operational benefits: Delivery.com said it saw almost a 70% reduction in chargebacks after deploying Forter. The company says the new funding will be invested in its mission to eliminate e-commerce fraud. Forter’s leadership frames the product as a way to remove merchants’ fear of fraud and help them capture more sales. Forter provides a fraud-prevention solution with a real-time decision engine that accepts or denies online transactions and is integrated into retailers via an API. Its engine evaluates transactions at three levels: connection/security signals, identity verification using financial information, and real-time behavioral analysis. The product reduces shopper friction by skipping security questions and follow-up calls for up to 27% of customers. Forter also assumes liability when it fails to catch fraud, taking the hit rather than the retailer. To date its customers have been on the smaller end (processing around $50 million per year); with new funding it plans to pursue retailers processing $500 million in sales and above. Founded in 2013 and headquartered in Tel Aviv, current customers include Heels.com, Jomashop.com, and Lethal Performance.

Total raised

$525M

Funding rounds

6

Latest round

Series F

Latest activity

May 2021