Israel’s Forter, the first fraud prevention solution to offer a real-time decision engine for online merchants, announced it has closed a $15 million Series B round from New Enterprise Associates (NEA) and Sequoia Capital.
The funds will be used for the company’s new R&D Center in Tel Aviv.
Sequoia Capital’s Doug Leone and NEA’s Peter Barris participated in the inauguration of the center to address one of the growing concerns in e-commerce – fraud.
Forter boasts that it removes the hassle of managing fraud for merchants, allowing them to grow their business, increase revenue and strengthen every customer experience. Through its triple layer – cyber, analytic and behavioral – approach to understanding and attacking fraud, Forter’s technology is built to stay ahead of the rapidly evolving fraud and e-commerce landscape. The solution is also backed with a 100% chargeback protection guarantee.
According to the latest industry-wide reports, in the last year alone, e-commerce fraud has nearly doubled, triggering $5 billion in losses for online merchants. Well-known breaches at brands like Target, Home Depot and JP Morgan, and the rise of new payment technologies such as Apple Pay and Google Wallet, reflect how fraud is becoming more pervasive and difficult to manage than ever before.
The 2014 holiday season is projected to reach $315 billion in e-commerce sales, according to a report from eMarketer. What could be the most profitable season for retailers may also launch an equally profitable season for fraudsters
“Merchants have embraced Forter because its exceptional technology and ease of use eliminate the pains of fraud prevention and increases revenue, ” said Shmil Levy, partner at Sequoia. “As data breaches and innovations in mobile payments make it more complex to run an e-commerce business, the necessity and value of Forter’s solution will only continue to grow.”
“During the last year we have approved hundreds of millions of dollars worth of transactions that have allowed merchants to boost their mobile commerce, accept more international customers and significantly improve the brand experience, ” said Michael Reitblat, Forter CEO and co-founder. “Our merchants are shipping faster, selling more and experiencing higher customer satisfaction. The support of NEA and Sequoia will help us respond to market demand among US e-tailers by expanding our sales and marketing efforts.”