Joint Network Established to Combat E-Commerce Fraud
Forter has announced a new collaboration with e-commerce platform FreedomPay in a bid to combat growing levels of fraud as well as reduce false decline rates.
The partnership represents the first joint network for online merchants and banks to instantly block fraud attempts and allow legitimate customers to operate freely.
Online shopping has grown substantially during the COVID-19 pandemic following the closure of shops and with people being forced to spend more time indoors. This has led to fraudsters increasingly moving online to take advantage of this shift in consumer behavior.
Forter said that online transaction volumes for new users had more than doubled since the start of the crisis, and this has led to much higher false decline rates, as these customers are five- to seven-times more likely to be declined due to lack of data with legacy fraud prevention systems. This can damage customer experiences, leading to lost revenue for retailers.
The new partnership seeks to overcome the issue of multiple players involved in each online transactions, e.g. the online merchant, the credit card issuer and the bank, using different fraud solutions. It is hoped Forter and FreedomPay’s global network will allow merchants to confidently accept users they have never seen before.
Forter added that its fraud prevention capabilities available from the network meet regional and country specific compliance requirements for merchants, including 3D secure and other SCA methods for PSD2.
Liron Damri, co-founder and president of Forter, commented: “Our coalition of merchants, payment providers and banks fighting fraud together is a huge step forward in global fraud prevention. With over $200bn in online transactions and over 800 million trusted users, we enable our coalition members to be way more effective in fighting fraud and growing the business with confidence.
“Partnering with an industry leading payment organization, like FreedomPay, allows us to provide its merchants with the most optimal user experience and with a trusted environment that allows them to grow with confidence.”