Ecommerce revenue for fashion merchants has been growing at an annual average of 17.3% over the last six years. In 2016 it was worth $73 billion in the US alone, second in sales value only to consumer electronics. But this rapid growth raises the stakes on fraud detection for fashion retailers.
When it comes to accurately vetting fashion orders for fraud, there’s no substitute for experience. Riskified provides fraud management services to some of the world’s leading fashion brands, including Fortune 500 companies, and is familiar with the intricacies of safe and fraudulent online shopping patterns within the industry. We analyzed our data to compile a report for fashion retailers, providing insights and best practices for detecting fraud while maximizing online revenue. In this post, I share some of the findings that appear in the full report
Fraudsters choose expensive shipping options
Nobody wants to wait a long time for their packages to arrive. But while legitimate customers worry about the added cost of expedited shipping, fraudsters–who aren’t using their own money–are indifferent. This is a big reason that Riskified can safely approve 98% of fashion orders requesting ground shipping, compared to 89% for express shipping.
Pay attention to the order email!
Fashion orders using emails that are at least two years old can be safely approved over 95% of the time. However if the email was created within the past three months, the risk profile of the order is much higher.
The email address itself is also an important data point. When Riskified detects that the address used to place an order contains the shopper’s name, the order is 4% more likely to be safe.
The message is clear: fraudsters don’t use their personal email accounts, and many don’t have the patience or foresight to create phony accounts far in advance.
These are just a couple of the insights included in our special report about CNP fraud in online fashion sales. The full report includes stats and tips on sneaker reshippers, the rate of fraud associated with orders shipping to different locations around the globe, how to view AVS mismatches and more. For more insights and fraud prevention best practices, download a complimentary copy of the report.