When Fraud Prevention Prevents ECommerce

Michael Reitblat, the Founder and CEO of Forter, an online fraud prevention company, is helping brands streamline their ecommerce fraud protection for a better customer journey.  In our latest GDS Video Snack, Shawna Ryan, Editor at Meet The Boss TV, looks into the dilemma of online fraud prevention, and how the checks and balances to stop criminals can actually be a barrier to successful ecommerce.

Michael Reitblat, Co-Founder & CEO, Forter:
“Retailers should come together and say he we’re fighting fraudsters. It’s not I’m going to do a better fraud prevention job than the other guy. It’s not a competitive advantage, its common sense for commerce”.

Michael Reitblat, Co-Founder and CEO of Forter, an online fraud prevention company, says he has spent his life fighting online fraud, and that today fraud costs companies 200 billion in annualized lost sales  and accounts for 70 billion in annual fraud damages.

Michael Reitblat, Co-Founder & CEO, Forter:
“We’re seeing 126% increase in number of fraud attacks in last 3 quarters”.

And he says many sophisticated online businesses are realizing that sometimes lost revenue isn’t just because of theft, it’s because of the safeguards that complicate the online shopping experience for consumers.

Michael Reitblat, Co-Founder & CEO, Forter:
“People usually talk about fraud for two reasons, first because “hey I got hit by fraud and lost a bunch of money”, but more importantly, retailers are now finding out they’re losing money because they’re turning away good buyers because their fraud prevention systems are flagging transactions for no reason or pushing transactions through a significantly inefficient process from a friction perspective, calling buyers and preventing buyers from buying with certain cards or shipping to certain addresses and in the world of consumer expectations of I want it now and I want to pay for it how I want,  if you don’t give it to them they switch to Amazon or one of the newer platforms”.

It’s the kind of online intelligence that even big companies like Under Armour say is valuable to their ecommerce business, and one of the reasons why they found value in attending our NG Omnichannel Summit in Austin, TX.

Sid Jatia, VP of Digital, Under Armour:
“I was having a conversation with a security and fraud company and the insight that person gave me was very important for our business around how we do our fraud management in terms of there’s a risk score associated with it, and how we approve credit cards…I think those little nuggets could potentially be extremely valuable.  If I can talk to a couple of people and get a nugget or two for our business, I think that’s phenomenal”.

Watch more videos by Shawna Ryan, here 

Arrange a Conversation