Fraud is becoming more and more sophisticated, as cybercriminals try and keep a step ahead of fraud management solutions. This arms race is likely responsible for the recent surge in ATO – account takeover – attacks, a form of fraud which is particularly difficult to detect. In 2016 ATO led to $2.3 billion in losses – well over a third of the total fraud losses that year.
Not only are ATO attacks tough to spot, they can also cause a lot of harm beyond just stolen goods and chargebacks. Customers often leave their credit card details saved in their store accounts, trusting merchants to guard it. And in the event of a data breach, they are left to deal with the fallout of having their personally identifiable information–PII– stolen, which reflects very poorly on your brand. In this post, we’ll dig a little deeper into what ATO attacks actually look like, and provide some tips to help protect your customers’ data, and your own products, from sophisticated ATO fraud.Read More
In 2017, the average merchant had roughly 1.5% of their revenue consumed by false declines. These are orders that are perfectly legitimate, but end up being cancelled by merchants who either have strict rules in place, or are just uncomfortable with one or more data point in the order.
So who are the people most often behind these false declines, and how can merchants identify them and start accepting more of their orders? In this blog post we’ll look at five cases from Riskified’s order database which represent five archetypes we’ve identified as being wrongful victims of risk-averse merchants. These cases illustrate some of the most common reasons behind false declines, along with some tips for corroborating their “risky” orders. Names and details have been changed to protect their privacy.Read More
The global cosmetics market is expected to be worth $390 billion by 2020, and based on current trends, eCommerce will play a significant role in overall industry expansion. But failing to recognize and capitalize on growth opportunities can play directly into the competition’s hands. To make the most of this potential market, online merchants need to be providing consumers with an optimal user experience. A large part of this is understanding how to maximize approval rates, limit the use of high-friction validation measures, and ensure systems can deal with overseas and mobile orders.
In this blog we give readers a taste of our report, which offers insights into shopping patterns and fraud trends unique to online cosmetics, as well as best practices for effectively reviewing transactions for CNP fraud without hindering the shopping experience.Read More
With the eCommerce landscape becoming more and more competitive, merchants are being forced to constantly think of new ways to generate growth. One of the most accessible, yet underutilized, channels is cross-border online sales. Consumers are expected to spend $627 billion on goods from overseas merchants by 2022, with the highest growth rates projected in regions outside of North America and Western Europe.
Yet moving into new international markets is no simple endeavor and can be challenging to navigate. This could be why nearly 60% of surveyed US merchants reported that their eCommerce website did not accommodate global business.
Riskified created a comprehensive report that shares insights to assist retailers considering expansion into new geographical regions. In this blog post, I’ll share a taste of the findings in our full report.Read More
The 2017 holidays rewrote the eCommerce record books, and once all the data is in we’ll surely find that, as a whole, it was yet another record-setting year for online sales.
But along with this surge in eCommerce, we saw CNP fraud popping up in new places and taking new forms. In this post, I’ll look back at 2017 in eCommerce and fraud and share projections for 2018.
1) Premium shipping options will get safer for merchants
Customers are increasingly demanding omnichannel shopping options, and more ways to receive their purchased goods. As Amazon sets the standard, shipping options are becoming a competitive edge for merchants; customers are coming to expect that they can click and collect within 30 minutes, or get same day delivery.Read More
Global eCommerce sales are expected to reach $2.77 trillion by the end of 2018. As the eCommerce ecosystem rapidly expands to include more merchants, fraud prevention solutions, payment processors and shopping platforms, so too does the opportunity for knowledge sharing.
Fraud events and eCommerce industry conferences provide an excellent chance to connect, hear success stories, share challenges, get acquainted with trends and learn about technology that could better your performance. Riskified has composed this list of the best conferences for online merchants and industry professionals to attend this year.Read More
In a highly competitive business landscape, it’s important for eCommerce merchants to identify and capitalize on new growth engines. In the past year, Russia and many of its neighboring countries exhibited the highest eCommerce growth in Europe, and Eastern Europe became the fourth largest eCommerce market in the world. Estonia showed a 35% hike in online sales in 2016, while Ukraine saw an incline of 31%. As the number of internet users continues to increase, countries that were members of the former Soviet Union present an enormous opportunity for online merchants.Read More
Email is an extremely valuable tool for marketers. It not only enables brands to reach the right people with the right messages at the right times, it also delivers the best ROI of any marketing channel. In a 2017 Email Benchmarking Report produced by Digital Doughnut for dotmailer, respondents cited a return on investment of £39/$39 for every £1/$1 spent; that’s huge.
Email has been a common marketing vehicle since the 90s and as such, it’s sometimes viewed as a task that marketers can do with their eyes shut. However, without the proper care and attention, dropping the ball can lead to all sorts of problems – and we mean big problems, like fraud.Read More
In the past, credit card fraud was commonly determined by checking whether a shopper’s credit card matched their ID. With the advent of online retail, however, catching fraudsters became a more complex task and many merchants resorted to automatically declining orders containing data mismatches.
Initially this approach seemed practical, as the majority of eCommerce stores catered to a domestic market, which meant fewer legitimate reasons for discrepancies between a credit card BIN country and shipping destination (for example). Today, with a rapidly expanding global customer base, there are many situations where mismatches are explainable – or even to be expected – in good orders.Read More
It’s the 2nd largest eCommerce market in Latin America, with nearly 60 million internet users. More than half of online shoppers frequent international websites, and online purchases are expected to hit $65 billion by 2020. So why are so many eCommerce merchants so cautious with Mexican orders, to the extent of blocking Mexican IPs altogether?
Mexico has a bad reputation when it comes to online fraud. In 2016, the Mexican chargeback rates was 4 times higher than the global average, so it’s hardly surprising that fear of fraud leads many eCommerce merchants to shut their virtual doors to Mexican consumers. In this post, I’ll demonstrate how businesses who block Mexican orders are making a costly mistake – turning away many good customers and a lot of revenue. I’ll also provide tips for managing fraud from this market.Read More