Fraud prevention startup Forter has raised $15 million in a Series B funding round from New Enterprise Associates and Sequoia Capital.
Forter, which raised $3 million earlier this year, offers a no-loss guarantee to e-retailers. That means that it takes the loss if a transaction it approves turns out to be fraudulent.
The vendor’s system seeks to detect fraud by examining many aspects of a transaction. That includes the customer’s geographic location, whether he appears to be hiding his identity or location, and how he navigated to the retailer’s site. The vendor also looks at what the individual did after arriving on a retailer’s site.
With a growing number of high-profile data breaches earlier this year, there’s increased interest among investors to finance vendors seeking to combat the threat of fraud, says Peter Barris, managing general partner at New Enterprise Associates.
“There has been a growing interest among investors to find a comprehensive solution that truly eliminates the pains of fraud prevention for the merchant,” he says.
Forter does not disclose its pricing. But company executives say they charge by taking a small percentage of the value of each transaction, a percentage that varies depending on the retailer’s risk profile, volume and other factors.
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