We recently published a report on fraud in the ticketing industry, based on data we compiled in the process of our work with leading ticketing merchants. Now, we’ve taken some of the key data sets from it and presented them in an informative infographic. Use it to get a visual window into the patterns fraudsters exhibit when targeting event ticket sales. After you’ve finished looking it over, you can download the report itself to gain even more insights into the data presented here.Read More
Despite growing awareness about the issue of false declines among eCommerce merchants, it is inherently an “invisible” problem. How can retailers measure or know how many of the orders they declined due to fear of fraud were actually valid and should have been approved? Only a small percent of customers’ whose orders are declined will reach out to the merchant, and in many cases fraudsters will also file a complaint over having their order “wrongly” declined. In short, it’s difficult to know which declined transactions should have been approved.
To better understand the true scale of the false declines problem, Riskified commissioned a white paper from strategy & research company Javelin. Javelin surveyed 3,200 consumers about their experiences with credit card declines in 2014. In this post, we share some key findings from this research into the impact false declines have on consumers in the US.Read More
It’s an exciting time to be in the event ticket industry. In the US alone, online retails sales are expected to reach $334 billion this year, and will continue growing. Online event ticket sales, meanwhile, are projected to grow at an average annual rate of 3.1% between now and 2019.
Riskified has been fortunate to work with some great ticketing merchants, including viagogo and Ticket Evolution, and has been helping them drive ticket sales while avoiding CNP fraud. Today, we publish a report about fraud in the ticketing industry, based on data we compiled in the process of our work.
The following post includes a small taste of the insights and data included in our report about CNP fraud in the ticketing industry.Read More
Managing eCommerce fraud operations is no easy task; whether hiring, training, and managing a manual review team, monitoring approval rates, and optimizing internal rules, a fraud manager’s attention is often drawn to many places at once. With so much on their plate at any given time, it’s easy to understand why merchants are drawn to “silver bullet” solutions to manage and prevent chargebacks.
One “solution” to chargebacks often utilized by merchants is fraud prevention blacklists; when hit with a chargeback, all the transaction details are simply added to a blacklist, so that the next time an order is placed from the same IP address or using the same email, the transaction is automatically declined. While they may seem like a great way to streamline internal operations and to prevent future fraud, blacklists are in fact a misguided way to address chargebacks.
In using blacklists, you block not only fraudsters but also many good customers. Moreover, there are pretty basic methods fraudsters can use to “fool” your blacklists. In this post, I will explain why you should stop relying on blacklists for fraud prevention.Read More
Founded in 2009, Vestiaire Collective launched with the aim of offering a high quality online marketplace in which members could buy and resell premium desirable fashion in a trusted environment. The site stands out from other platforms due to its knowledgeable curation team, authenticity and quality control process, and its extensive active community of global fashion lovers. Six years later Vesitaire Collective is now Europe’s leading trusted site for the resale of desirable premium and luxury fashion, and a cult favourite amongst style lovers with over 3 million members located in 40 countries worldwide.
We interviewed Michael Benisti, Head of Payments and Revenue Protection at Vestiaire Collective, who shared his tips for managing fraud while providing great consumer experience.
Vestiaire Collective is a very strong brand. What tips do you have for other retailers looking to build and strengthen their own brand online?
Vestiaire Collective’s marketplace business model is unique. I think the three key things that have helped us grow and become successful are:Read More
Unfortunately, those tasked with preventing CNP fraud often lack the required resources to achieve optimal performance. In fact, over 50% of the merchants surveyed in the Merchant Risk Council’s (MRC) 2015 Global Fraud Survey cited ‘lack of sufficient internal resources’ as one of the top three eCommerce fraud challenges they faced in the past year.
Senior executives do not allocate sufficient resources to fraud management because they fail to appreciate the true impact fraud operations have on their business as a whole. Risk and fraud professionals, meanwhile, struggle to clearly present the business case for investing in fraud operations to their superiors.
Along with our colleagues at the MRC, Riskified created the Cost of Fraud Calculator – a free, interactive tool that presents a holistic picture of the true cost of fraud for an organization and visualizes the business impact in a manner that can be shared with executives. Our hope is that senior managers will be more open to allocating resources to fraud management operations once they see the impact on sales revenue and customer experience.Read More
Everything about American luxury leather goods company Ghurka is linked to heritage – the company is named after the famously brave brigades of Nepalese soldiers who served in the British military, and the company still manufacturers bags by hand in its original Connecticut facility. However, the US-based retailer, founded in 1975, has managed to stay ahead of the times, with flagship stores in trendy New York City and San Francisco locations and a successful online store catering to both domestic and international customers.
We interviewed Justin Sellman, VP of eCommerce and Wholesale at Ghurka, who shared his tips for building a strong brand and optimizing consumer experience.Read More
The global B2C cross-border eCommerce market was worth $230 billion last year, and is predicted to grow significantly hitting $1 trillion by 2020. Reshipping companies, which accept a package on the customer’s behalf and then forward the parcel to its final destination, play a central role in enabling cross-border eCommerce. This is especially true in emerging markets, which are projected to experience the strongest growth.
Online retailers generally consider reshipping companies, also known as parcel forwarding centers, freight forwarders, and reshippers, as a fraud indicator. This is because similarly to proxy servers, consumers can use rehsipping services to conceal their real location. The fact that risk scoring services will often trigger fraud alerts on orders shipping to reshipping companies also contributes to their negative reputation.
While it’s true that fraudsters use reshippers to try and cover their tracks, many legitimate customers also rely on these services. Merchants utilizing blacklists or rules-based fraud management systems are most probably unwittingly declining legitimate orders sent to reshippers. Whether you already sell globally or plan to start accepting non-domestic orders, it’s important to ensure you are well-equipped to accurately review international orders for fraud. In this article, we lay out the legitimate reasons for using reshippers and provide tips for distinguishing between the good and fraudulent orders.Read More
For better and worse, we humans are not driven strictly by logic and self-serving interests. While decisions based on empathy, social norms and love allow us to have a functioning society, they often fail us when it comes to managing a business. In business, it’s important that we try to overcome psychological biases and instead strive to make the best decisions based on data and facts.
The work of behavioral economists is devoted, among other things, to identifying and explaining the psychological biases that lead us to make suboptimal decisions. In this post, I’ll introduce a couple of well known behavioral economics terms and will illustrate their application in the field of eCommerce fraud management.Read More
As the global eCommerce market continues to grow, eCommerce fraud will follow the same trend. Unfortunately, almost all eCommerce merchants have experienced the pain of fraudulent chargebacks. While it is possible to minimize chargebacks by rejecting all “risky” transactions, such a strategy is bad for business, as many good customers will be turned away along with the bad ones. In fact, our data suggests that 66% of orders typically declined by eCommerce merchants are actually placed by legitimate customers and should have been approved.
To help merchants accept more orders without the risk of costly chargebacks, we offer full chargeback insurance on all Riskified-approved orders. In this article, I explain how our chargeback insurance works, what it covers, and why Riskified offers this service.Read More