105: How Gartner Cool Vendor Forter Is Leading The Battle Against Online Fraud
Tonight I want to talk about fraud. Most people listening to this show have probably received a call from their bank at some stage to be questioned about recent transactions on their account that they did not make. It’s a hassle, and you have to wait for the new cards to arrive, but for businesses, it’s a much bigger problem. For every 1,000 transactions made in the first quarter of 2016, there were 34 fraud attacks. When you compare this to 15 per 1,000 transactions in the second quarter of 2015, this represents a 126 percent increase. I recently came across a company called
When you compare this to 15 per 1,000 transactions in the second quarter of 2015, this represents a 126 percent increase. I recently came across a company called Forter on the Gartner Cool Vendors list. They offer an invaluable service to retailers by taking away the risk of all transactions. Most fraud prevention solutions rely on rules that require manual reviews. Forter’s system is automated and works in real time. That means every transaction gets an instant yes or no response and is something they call decision as a service. Our guest tonight is the co-founder of Forter, Michael Reitblat.
Can you tell the listeners a little bit about yourself and what you do?
I’m Michael; I currently live in San Francisco. I lived in Israel for 25 years before moving here. I’ve been dealing with various kinds of protection for malicious activities whether it’s terrorism in the army or cyber attacks in cyber security companies or now payment fraud. It’s almost a hobby to me, detecting bad people.
You said you were in Israel for 25 years. I don’t think a lot of people realize this, but Israel has a huge tech scene hasn’t it?
Yes, I think Israel is considered the number two hub after Silicon Valley regarding tech. We have the number one PC capita per person in the world. That produces a lot of really great results.
Can you explain to the listeners what Forter is and what makes it different from other solutions out there?
Forter creates fraud free e-commerce. I’m sure every one of your listeners has had a credit card stolen or a credit card compromised on a website being used by someone else to buy something online. Then you have to call the bank and replace the card. I think what people don’t realize is that someone has to pay that bill and it falls on the retailers. Every retailer that accepts payments online is liable for any type of malicious activities with credit cards. We want every retailer to feel safe transacting with everyone. We want them to think and feel like they are operating in a fraud-free environment. We do that by looking at all the transactions that are happening and making a real-time decision yes or no. If we say yes and it turns out to be fraudulent, that’s on us. So we shift liability to
Every retailer that accepts payments online is liable for any type of malicious activities with credit cards. We want every retailer to feel safe transacting with everyone. We want them to think and feel like they are operating in a fraud-free environment. We do that by looking at all the transactions that are happening and making a real-time decision yes or no. If we say yes and it turns out to be fraudulent, that’s on us. So we shift liability to Forter.
Where do you see the biggest increase in fraud?
If we look at the basic value chain in the fraud ecosystem, we have someone breaking into a retailer or a bank. We all remember Target being breached and Chase being breached. They download massive data breaches of credit card numbers with addresses and names and all the identification associated with it. Then they sell those credentials to other people who want to commit fraud and use them to buy something.
How does Forter attack those issues?
With every transaction that happens we’re trying to look for less than half a second and trying to understand who the person is doing the transaction, who they claim to be in terms of what payment method they are using and who they are shipping the goods to. Does it make sense in a legitimate way or does it look suspicious?
Fortner recently received an additional 32 million in Series C funding. How will that funding help take Fortner to that next level?
We will use that money for two purposes. The first one is making sure our technology is always one step ahead of the fraudsters. Fraudsters are creative and devious and very fast moving. You can’t just say I developed a good solution now it works because in two months time they will find some way to make it not work. We constantly have to invest in our technology. The second one is currently all of our customers have been U.S based, and now we will be able to expand into new markets because e-commerce is 100 percent global.
What’s next for Forter?
We’re constantly upgrading our systems. We recently started a few large corporations with merchants on a large scale. We’re preparing ourselves for further expansion in terms of serving global customers and making sure we improve even on the best in class service we already have.
What’s the best way to reach out to you guys or find more information on Forter?
Our website has the basic information. That’s www.forter.com. Anyone can reach me at firstname.lastname@example.org. We would love to talk to anyone interested.