Wix strengthens merchant fraud protection with Forter

The news: Ecommerce platform provider Wix partnered with fraud prevention specialist Forter to offer merchants fraud solutions, per a press release.

Forter uses cyber intelligence and behavioral data analysis to offer real-time fraud decisioning for online transactions.

Why it’s worth watching: Card-not-present (CNP) payments fraud losses are expected to reach $9.49 billion in the US this year, accounting for 73% of total card fraud losses, per Insider Intelligence forecasts.

CNP fraud poses the biggest risk to merchants because they’re typically financially liable. Not only can it hurt their bottom lines, it can also damage consumer trust and minimize the chances of repeat purchases—which is why demand for strong fraud detection capabilities is so high.

The opportunity: Forter’s technology can help Wix minimize merchant CNP fraud losses, which are on track to reach $6.90 billion in the US this year. Improving merchant fraud solutions through Forter can help Wix increase its value proposition and tighten merchant loyalty. It also aligns with the firm’s broader push to improve merchant payment capabilities—it partnered with Stripe so merchants can use Apple’s Tap to Pay on iPhone tech and with Choice so they can accept ACH payments.

The bigger picture: As digital payment risks grow, providers are leaning into newer technologies to strengthen fraud prevention capabilities.

• Artificial intelligence (AI) already plays an important role in fraud detection providers’ tech stacks. But as generative AI gains steam, Insider Intelligence sees an opportunity for this tech to help card networks and other payment providers fight fraud.
• Machine learning-based fraud prevention is becoming more popular because the algorithms underpinning the tech can adapt over time as they receive more data. Payment providers like Checkout.com and ACI Worldwide offer machine-learning-powered fraud solutions.
• Behavioral biometrics and analytics provide an extra layer of identity verification that works well alongside other fraud prevention tools. TransUnion’s TruValidate Device Risk with Behavioral Analytics solution, for example, uses device recognition, context, and user behavior to make more informed fraud decisions.
• Real-time insights let businesses identify potentially fraudulent transactions before money moves through the purchasing process. For instance, Ravelin started using real-time fraud insights from Mastercard’s Ethoca to strengthen fraud detection capabilities.

Go deeper: Check out our US Card Payment Fraud Losses Forecast 2022 report to learn about the different factors driving card fraud and how stakeholders in the purchasing chain are contending with these risks.

This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.

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