Although the technology behind it is complex, the product itself is very simple. Instant, automated approve/decline decisions, for every single transaction – covered by our chargeback guarantee. We call it ‘Decision as a Service®’.
Merchants shouldn’t have to be experts in fraud prevention – it’s a distraction, and staying ahead of today’s clever fraudsters takes tremendous expertise and effort. With Forter’s Decision as a Service®, they have peace of mind that their fraud is being handled by experts and a system that is designed to optimize customer experience, and maximize sales.
We think of it as Decision as a Service® because it takes all the hassle and delay out of making the decision. The decision and the fraud liability are no longer concerns for the merchant. The decision simply becomes a service, provided in real-time by Forter.
Machine learning, sophisticated algorithms, a huge amount of data, behavioral analysis, cyber intelligence and elastic identity – all leveraged and combined in just the right ways through the human expertise, experience and insight of our researchers, both analytical and technical.
The idea behind it is that we don’t look at individual transactions – that was the manual review approach. We look at trends, patterns and people. For example, we know what a traveling student buyer looks like – we know how they behave, how they order, what to look for. So if there’s a fraudster pretending to be one, we’ll know, because it’s so difficult to get every single detail right when you’re pretending. You’d need to ace it on more than 7000 data points and all the complex interlacing connections between those points.
The easiest way to explain this is to think about how online fraud prevention has evolved.
There are legacy fraud prevention companies, who rely on traditional fraud prevention methods like inflexible rules engines and manual review, and provide risk scores that leave the responsibility and liability with the retailer.
Then there are companies which run according to a similar model, but use more advanced technology – machine learning as well as, or instead of rules engines. Then there are companies who are able to offer decisions instead of scores, and can take care of the fraud for a retailer and offer a chargeback guarantee.
Then there’s Forter – we use highly sophisticated technology that’s updated many times a day, we offer decisions for every transaction in real-time, and full automation. It’s not outsourcing manual reviews, it’s abolishing them completely. That’s the only way you can be truly accurate, truly real-time, for truly excellent customer experience, and truly scalable, so that that excellent experience remains even in the busiest holiday sales season of a huge retailer. Quite simply, no one else is able to offer that.
After the first month, you can expect these results to improve; in general clients see higher approval rates and lower chargebacks. Naturally this varies between industries and between specific companies. For example, if you already have a 99.5% approval rate, but also high chargebacks, you likely won’t see higher approvals with Forter; you’ll see similar approvals but accompanied by far lower chargebacks. Similarly, if you have low approvals and very low chargebacks, your approval rate will improve, but your chargebacks would probably stay about the same. On average, though, clients experience a 4-6% increase in approval rates.
The reason that this improvement takes a month or so to kick in is that the machine learning component of our system, refined and guided by our expert analysts, takes about that long to tailor itself fully to your unique risk profile.
Full automation is possible when the power of machine learning is leveraged and continually refined by fraud domain expertise and research. The combination is highly accurate, drawing on decades of experience, thousands of data points and millions of past transactions to decision every order – in less than a second.
The delays caused by manual reviews have long been a sore point with consumers and business professionals alike. Friction at checkout and a delay in confirmation and fulfillment increases the likelihood of a lost sale and a dissatisfied customer. Full automation removes that delay, replacing it with frictionless checkout and instant fraud decisions.
Forter’s decisions are uniquely fast, and that speed is made possible by full automation – something we’re the only company able to provide. There are three general benefits arising from automation, in addition to the instantaneous decisions:
Only full automation can provide the full real-time benefit for every customer and every transaction. Partial automation leaves some customers going through manual review. And every time data is pulled up for manual analysis, there’s a security risk attached – something that only full automation can remove. In a time of frequent data breaches, it’s not wise to increase the number of vulnerabilities unnecessarily.
Some chargebacks are service chargebacks (for example, the customer wasn’t happy with the speed of delivery, or the color of the item) and we don’t cover those – we only cover cases of fraud. And if we decline a transaction and you decide to go ahead anyway, we won’t cover that chargeback.
In fact customers in different countries have different behavioral and payment norms, and Forter’s system is sensitive to those, able to distinguish just as accurately between a good Chinese/British/Russian/Nigerian/etc. customer and a fraudster as would be the case with their U.S. equivalents. This is important because if you don’t take these nuances into account your system will reject a lot of genuine international customers simply because they don’t behave like good U.S. customers do. You can read more about this (and why blacklisting by geography is a bad idea) on the Forter blog.
Code #37 – Fraud Transaction No Cardholder Authorization
Code #63 – Cardholder Does Not Recognize Potential Fraud
Code #62 – Counterfeit Transaction (for Card Not Present transactions only)
Code #75 – Cardholder Does Not Recognize Transaction
Code #83 – Fraudulent Transaction: Card Not Present Environment
FR2 – Fraudulent Transaction
R03 – Fraudulent Transaction
F29 – Fraud – Card Not Present
Discover (including Diners Club International):
Code UA02 – Declined Authorization
Code 7030 – Fraud card not present transaction
Unauthorized Transaction – Account Holder did not Authorize Transaction
Unauthorized Use – As a result of fraudulent activity
Other Payment Systems:
JCB Co., Ltd – Code 546 – Unauthorized Purchase
The cost per transaction varies depending on the industry and the company’s risk profile. Some industries, of course, are higher risk than others, and some companies are more attractive to fraudsters than others. This is taken into account during the pricing discussion. Rest assured, however, that you should expect a positive ROI.
The chargeback guarantee plus the high level of accuracy of Forter’s system means that your chargeback costs disappear from the start, which for most companies makes a material difference to the bottom line – and that’s before you even start to evaluate the gain from increased approvals and more sales.
If you’d like to get a pricing quote for your business, to find out what your ROI could look like with Forter, get in touch.
Fraud losses decrease because Forter’s system is simply extremely accurate. It’s very good at stopping fraud. Any chargebacks which do get through are covered by Forter’s guarantee.
Sales increase because Forter’s system is accurate, not risk-averse, and because it removes friction from checkout. So more orders are approved, and they’re approved instantly, without the delays that lead to customer cancellations.
Finally, since most fraud departments spend about half their budget on manual reviews, it’s easy to see how a fully automated solution cuts the costs.
This is why many of Forter’s customers think of Forter as a partner rather than simply a technological solution – they know that their individual circumstances and requirements are accommodated and prioritized. To ensure that this level of service is maintained, each merchant is provided with a dedicated support team, including a fraud expert and a system developer.
In general we find the initial results are comparable to the results the company experienced before Forter. After the first month, once the system has become even more closely tailored to your unique risk profile through more data input and the expertise and research of our fraud domain analysts, approval rates usually increase and chargebacks decrease, compared to the pre-Forter results.
We’ll admit, though, that we’re proud of the technology itself as well. When the company was founded, it wasn’t clear that it would be possible – it was a huge challenge, something no one else had ever managed. All other fraud prevention solutions rely on a manual review component. After 8 months in stealth mode, the team proved that full automation was possible – and that the results were impressive.
It’s based, of course, on machine learning, in order to leverage the power of big data, and has a triple-layered structure of cyber intelligence, elastic identity and sophisticated behavioral analytics. Really, the machine and our analysts are looking for everything. And they turn what they see into millions more connections, and patterns. And from that, the true picture emerges.
You can see more about this on our technology page.
Forter is PCI Level 1 certified, the most stringent PCI certification level available, and approved to process over 6M transactions/year. Forter is also in the process of completing a SSAE16 – SOC 2 report. Maintaining the privacy of customers’ data and ensuring their trust in Forter is crucial for Forter’s successful partnerships.
Forter is built on industry standard technologies, and is constantly improving technical and operational safeguards designed to protect the security, confidentiality, and integrity of data submitted to Forter. We rely on information from organizations like CIS, OWASP, PCI-SSC, and the CSA to provide guidelines, as well as third party audits from companies like Comsec Group Ernst and Young (E&Y) and Comodo as to the best practices for protecting our services.
How we ensure that we are not influencing your site:
● Our script is loaded before the closing </body> tag in an asynchronous way, and only
after the page finishes rendering, without delaying the onLoad event.
● We have tested our script with Selenium on dozens of devices and browsers.
● We add your site to our external monitoring system and measure it regularly.
● Upon request we can deploy the JS script incrementally. We have a mechanism that
allows us to provide dynamic script from our end to specific audiences. We can use this
mechanism in order to make sure that page load is not affected. This is a 3 step
1. Open the script only for Forter IPs and monitoring system.
2. Open the script to merchant’s IPs in order to allow you to check that the script is not
influencing your customers.
3. Open the script to all customers and closely monitor the page load subsequently.
Holiday periods highlight this strain – teams struggle to keep up with the unusual flood of orders, and staff who are taken on for this period in particular are often slower and less accurate in their reviews, leading to poor customer experienced and reduced revenues. With Forter, by contrast, holidays are just like any other time of year from the fraud prevention perspective.
Technologically speaking, Forter’s system was designed for large scale from the start, using industry standards and best practices. As the system is a cloud-based SaaS, increasing computing power is a matter of simple configuration-only change.