Frost & Sullivan’s 2020 Frost Radar identified Forter as a prominent market leader in e-commerce fraud prevention. Forter’s high growth rates and emphasis on driving industry innovation have propelled the company into its position as an industry leader.
Vikrant Gandhi, Industry Director at Frost & Sullivan, commented that “Forter stands out in the industry for its ability to deliver a broad array of fraud prevention solutions, including account protection, payment protection, and policy abuse, protecting the entire customer journey with an enterprise-class platform.”
An overview of the e-commerce fraud prevention market
The United States’ e-commerce market is growing rapidly, with e-commerce sales anticipated to generate over $700 billion by 2023. As the online environment has become consumers’ preferred way to shop, however, it has similarly emerged as the preferred channel for fraudsters.
Card-not-present payments, such as online, mobile, and voice-based or self-serve payment options, have opened up a number of opportunities for fraudsters. On top of that, the widespread implementation of secure, chip-based card payments in the U.S. has driven fraudsters away from card-present transactions.
Raymond Pucci, Director of Merchant Services at Mercator Advisory Group, added to this point, saying that “with the transition to EMV enabled in-store POS terminals, payment card fraud has shifted to online commerce. Fraudsters have been quick to adapt and are now well-equipped to try card-not-present fraud. They often use computer generated attacks that can attempt thousands of fraudulent transactions on a global basis.”
New solutions are needed to combat sophisticated e-commerce fraudsters
Innovative new solutions are necessary to tackle the unique threats that modern day fraudsters pose. This has resulted in rapid and ongoing expansion of the e-commerce fraud prevention market. In other words, as fraudsters deploy increasingly sophisticated fraud mechanisms, fraud prevention solutions similarly need to evolve to meet their high level of sophistication.
Frost & Sullivan’s research found that fraud prevention solutions that rely primarily on static data and rule-based analytics are no longer sufficient when it comes to preventing fraudulent transactions. Instead, analytics-based fraud management solutions that leverage machine learning and artificial intelligence are needed to identify and prevent fraud.
2020 Frost Radar names Forter the market leader in e-commerce fraud prevention
Frost & Sullivan’s 2020 Frost Radar analyzed the U.S. e-commerce fraud prevention market, and found that Forter stands out as a clear leader in the market among 11 major e-commerce fraud prevention companies.
The Frost Radar measured growth rates, absolute revenues, research and development, customer alignment, sales and marketing, product portfolio, and several other factors to measure the performance of each company.
Part of Forter’s success as a market leader can be attributed to its impressive global fraud network. It has processed transactions in all of the world’s 230-plus countries and territories. Each year Forter processes $150 billion in transactions and has more than 620 million global identities in its database.
Moreover, Forter has experienced rapid growth in the last three years, and this trend is expected to continue as Forter delivers new fraud prevention solutions.
Enabling real-time transaction decisions is a necessary capability
The Frost Radar also praised “Forter’s ability to offer highly integrated, data-driven, and customizable implementations that protect businesses during every stage of the consumer lifecycle in real time,” adding that this “delivers clear performance advantages for the company.”
This real-time capability is important. In fact, machine learning-based implementation that enables real-time transaction decisions—while also catering to the needs of merchants—is becoming a necessary competitive requirement for fraud prevention leaders. In order to remain relevant in the expanding market, fraud prevention leaders must offer some version of this.
Pucci noted that “real-time decisions are required, whether it’s for high-ticket items like electronics or high-volume digital sales like subscriptions.” This is because “fraud prevention tools using machine-learning algorithms that quickly crunch loads of data quickly give merchants information on the legitimacy of a customer’s online transaction,” he explained.
Forter’s extensive database propels it to the top of the market
Forter’s global network has allowed it to acquire the data needed to deliver several native services on a single platform. Most of this data is collected by Forter itself, as opposed to acquiring data sets from a third party. This allows Forter to tackle the multiple challenges associated with customer data, including cost, lack of context, and privacy.
Of course, the sheer amount of data collected is not the only important factor. It is just as important that providers are able to use the data to find patterns and behaviors, identify high-risk transactions, and protect retailers by preventing e-commerce fraud. Forter’s massive database,highly capable data sciences team, and fraud domain experts allow it to do just that.
Since its founding in 2013, Forter has quickly positioned itself as a leader at the top of the e-commerce fraud prevention market, and its quick growth momentum is expected to continue as it delivers innovative and effective fraud prevention solutions. Forter’s ability to rapidly expand upon the fundamentals of its platform is likely to present future opportunities for the company as it supports new protection solutions and drives industry innovation.
To learn more about Frost & Sullivan’s research methods and why it named Forter as a clear leader in e-commerce fraud prevention, you can download the 2020 Frost Radar here.