PayPal Fraud Vets Launch Forter with Chargeback Guarantee
Feb. 13, 2014
Veterans of Fraud Sciences, an antifraud technology provider acquired by PayPal in 2008, today launched a new startup called Forter that promises a fully-automated e-commerce fraud solution that operates in real time backed by a guarantee to cover merchant losses to chargebacks on transactions they approve. The company’s three founders embarked on the new venture with the idea that merchants need someone standing on their side regardless of the payment method and regardless of the device, according to Liron Damri, co-founders and COO of Forter.
“We came out of PayPal a year and a half ago after spending five years there learning everything about how to take behavioral analytics into a scalable environment and create a fraud-free environment for merchants,” Damri said.
The founders’ roots in Israel include a stint in the intelligence arm of the Israeli Defense Force, which Damri said informs the company’s approach to analysis, which differs from the current industry standard in the U.S., he said. Rather than take the Big Data approach, Forter prefers to rely on professionals from the intelligence community who have worked in cybercrime to build an automated system to deal with fraud.
Citing the tendency of cyber criminals to not only adapt quickly to antifraud techniques, but to be ahead of them in most cases, Damri preferred to keep the technology Forter will use to discover fraud under wraps, but said it will cover fraud losses 100 percent.
“Unlike Big Data solutions that are out there today, we’re trying to solve the key problem merchants have which is they should not have to deal with risk management,” Damri said. “We, as experts, have to be able to deliver the solution behind the scenes.”
The company has been in stealth mode for the past eight months and Damri said now it will focus on selling to U.S. merchants.