Many elements contribute to the expanding fraud problem that online companies must contend with. These include: new criminal tactics, prolific growth of Internet-able and commerce capable devices, payment platforms offering an array of payment types, and the growing scale of data breaches globally. At the forefront of this escalation is online fraud. Online fraud has realized a rapid rise as consumers have migrated towards online for their purchasing needs and, subsequently, fraudsters have followed the money. And because fraudsters don't comply to any set rules, their tactics are aimed at exploiting opportunities for the least amount of effort with the greatest gains.
Forter, a company that uses machine learning to detect and prevent fraud in online retail transactions, announced today that it has raised $50 million in a series D funding round led by March Capital Partners, bringing its total financing to $100 million. Salesforce Ventures joined the round, along with previous investors including Sequoia Capital and New Enterprise Associates (NEA). Global online retail sales amounted to more than $2 trillion in 2017, and this number is projected to reach more than $4.5 billion by 2021. But as online retail grows, so does online fraud. Account takeover attacks are on the rise, as are high-volume automated "bot" attacks and so-called policy attacks like coupon abuse.
There are several companies claiming to offer AI solutions to consumer packaged goods (CPG) companies. AI solutions for business problems in the CPG industry appear to be less legitimate than we first thought. All of the companies discussed in this report employ relatively credentialed people in their C-suites, but their AI experience is generally lacking compared to other sectors we've covered (in terms of AI-related talent density, and experience actually using AI). The companies we examine in this report are older firms, who, unlike some of their startup competition, have no founding team members or C-level leadership with a strong background in AI. Many of the firms featured in this article, however, have hired experts in AI to run their AI practices and build AI-related products and services, but others have not hired any such experts to back up their claims of AI use.
In the digital age, credit card fraud is a global plague. In seeking an online security vendor, do your research and shop carefully. Although all merchants have fraud issues, it's "a bigger problem for online payments," according to Juniper Research's Online Payment Fraud Whitepaper. The drivers of the problem, the report says, are the sheer growth in e-commerce, the rising amount of money flowing through online channels and the rapid increase in mobile payments. By 2020, total losses due to card not present (CNP) fraud in the United States, online or otherwise, could reach $7 billion, according to Boston-based researcher Aite Group.
PetSmart is catching criminals through high-tech methods, and last year alone saved $12 million by pinpointing fraudulent orders before they were shipped. This year, the retailer is on track to match that figure and then some. This ebook, based on the latest ZDNet/TechRepublic special feature, looks at the rise of e-commerce and the digital transformation of retail companies. As retail gets more high-tech, it's only natural that fraud prevention has more technology added to catch the criminals who try to place fraudulent orders. PetSmart, and many other retailers, are using technology from Kount to take fraud prevention to the next level and not just stop losses at the stores, but also help authorities prosecute criminals.