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 people.