Forter, a security-focused company that brings real-time fraud-prevention technology to online retailers, has raised $32 million to continue its global growth and expand across the U.S.
Founded out of Tel Aviv, Israel in 2013, Forter has now raised $50 million in funding, after its $15 million round back in 2014 and $3 million Series A six months earlier. The latest cash influx was led by new entrant Scale Venture Partners, with participation from existing investors Sequoia Capital and New Enterprise Associates.
“In today’s post-EMV world, we want to completely remove the fear of fraud from ecommerce and help retailers capture more sales,” said Michael Reitblat, CEO of Forter.
In a nutshell, Forter’s automated fraud-detection technology helps establish whether an online transaction is legitimate or spurious, and the company is already working with the likes of Delivery.com, Heels.com, and Jomashop.com. It uses machine learning, behavior analysis, and thousands of data points to analyse and establish the legitimacy of a transaction. When a customer lands on a website, Forter tracks their behavior — where they go, what they click, and so on. When they go to make a purchase, Forter looks at the various transactional and behavioral elements to build a picture of the shopper’s intent. This automated, instant process is what Forter somewhat humorously calls its “Decision as a Service.”
Online fraud detection has emerged as a key tool for companies operating online, and it’s not just about point of sale. Last year, P2P lending platform Prosper Marketplace acquired finance-tracking startup BillGuard to bolster its security credentials. And just last week, identity verification startup Onfido raised a further $25 million to help businesses carry out background checks on individuals.