Forter, a fraud prevention company, has released its Loyalty Program Protection service which will help companies cope with rising levels of fraud.
The company’s latest edition of its Fraud Attack Index found there was an 89% increase in fraud attacks against loyalty programmes over the past year.
It estimates the value of loyalty points in the US is $140bn; however, $100bn of rewards are left unclaimed. Furthermore, in total around $1bn of rewards were fraudulently redeemed each year.
The RegTech platform has released the new protection service which can secure each touch point across a customer journey. The solution protects loyalty reward redemptions along with payments, by verifying the trustworthiness of each transaction and the user behind it.
To protect accounts, the solution identifies, and blocks attempts to create fake accounts, account takeovers to steal points or exploit customer data. Alongside this, the service offers policy abuse protection which prevents financial losses due to exploitation of coupons and promotions, discounts or referral bonuses.
Forter has built an e-commerce fraud prevention platform which protects merchants throughout their lifecycle. The platform leverages machine learning technology to secure clients from payment fraud, phone fraud, account takeovers, market abuse and chargebacks.
The company raised $50m in its Series D round back in 2018. March Capital Partners led the round, with participation also coming from Sequoia Capital Partners, New Enterprise Associates (NEA) and Scale Venture Partners.
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