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 email or IP address, 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.
Blacklists block not only fraudsters but also many good customers. Moreover, there are 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
India’s eCommerce market is widely considered the most rapidly expanding in the world. Annual growth is currently 51%, and market value is expected to hit $120 billion by 2020. Bearing in mind India’s huge (and increasingly tech-savvy) population, plus the fact that over 80% of online transactions come from major international e-tailers (compared to the global average of 50%), it’s clear that there’s plenty of room for new parties to get in on this “entrepreneurial gold mine”.
Earlier this month the Rakhi Festival kicked off the major Indian buying holidays. The high online shopping volume is expected to continue through to December, when Indian consumers take advantage of the North American sales season. Unfortunately, online retailers are failing to make the most of this thriving market due to a lack of familiarity – including fear of CNP fraud. In some cases this has prevented them from entering the market. In others, they may have already opened their virtual doors to cross-border sales from the region, but are losing revenue to false declines.
In this blog, I share some insights to help retailers across the globe get acquainted with the shopping patterns of this consumer segment, and give tips to help prevent fraud, minimize the rejection of legitimate customers, and boost profits.
The global online event ticket market is strong and growing, valued at $30 billion annually, and exhibiting an impressive 19% compound annual growth rate. In the US alone, revenue is expected to exceed $10 billion in 2017.
The move online has clearly benefited consumers, but the changing business landscape creates challenges for ticket sellers. One such challenge stems from the high resale value of tickets, combined with an increase in the liquidity of secondary markets. This combination attracts fraudsters who are looking for a quick score. They can buy expensive tickets with stolen credit card information and then easily sell them secondhand.Read More
On Thursday, July 20th, Riskfied New York held its first ever MeetUp. We invited current and prospective customers from the area to meet one another and network over drinks and hors d’oeuvres. The event was headlined by a presentation from Sarah Sheldon, Rebecca Minkoff’s eCommerce Associate Director and Sarah Roden, Account Manager at Riskified. Sarah Sheldon covered Rebecca Minkoff’s corporate story, some of their techniques for omni-channel sales success, and lessons they learned in fighting fraud as they grew. Sarah Roden followed, providing some practical tips for distinguishing legitimate orders from fraudulent ones.Read More
Businesses are often under the impression that moving operations online will be a cheap and easy way to increase profit margins. There are of course many benefits to selling online, however there are also huge costs involved in running an eCommerce store. A recent study suggests that between order management, SEO, and other expenses invisible to the shopper, margins are often even thinner online than they are in-store. And the truth is, this study likely overestimates eCommerce merchant’s margins because it doesn’t account for losses incurred due to CNP fraud.Read More
This latest round was led by Israeli-based Pitango Growth, and joined by Capital One Growth Ventures, Groupe Arnault, C4 Ventures, and existing investors. The investment–which brings Riskified’s total funding to $64 million–will be used to accelerate market penetration, solidify our position as a leading fraud-prevention solution, and serve new merchants internationally.
“We’re proud to announce that we’ve closed series C funding with these exciting partners,” said Eido Gal, our CEO. “Their commitment further validates our technology and approach to fraud prevention.”Read More
In 2016, the Middle Eastern eCommerce market was worth around $5 billion – a figure that’s expected to double by 2018. The region, as a whole, has tremendous potential. The digital share of retail in the Gulf states is a mere 1-2% of the total spent, compared to around 15% in more mature markets. To add allure, the average value of an online order placed in the Middle East is currently 50% higher than the rest of the world. The point is clear: The Middle East is a market that eCommerce retailers seeking to grow their business can no longer afford to ignore.
Many online merchants, however, continue to lose out on profits from this up-and-coming region due to their fear of Card-Not-Present (CNP) fraud. Some simply deny international credit cards. Others accept international cards, but fail to adapt their fraud review processes to account for cross-border transactions, resulting in high rates of false declines. Either way, retailers need to ensure they have the infrastructure, and are prepared to handle an increase in sales from this promising market.Read More
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 reportRead More
It seems like every tech company is using machine learning these days. Or, at the very least, talking about it. It’s a cutting-edge concept that’s getting a lot of buzz. But what does it really mean? In this post, I’ll first explain the basics of what the term means, and then how Riskified uses machine learning to drive accuracy when vetting orders for fraud.
How does Netflix know what I want to watch?
Why is Netflix so popular? Yes, they have a great selection of old movies, and their original content keeps getting better. But one of the features that really sets them apart from the competition is the accuracy of their viewing suggestions, tailored to your taste based on what you’ve watched previously. Sometimes it feels like they know exactly what you want to watch. How did they do it?Read More
One of the biggest challenges eCommerce retailers face is avoiding the rising number of chargebacks resulting from CNP fraud. In a 2016 study, online merchants reported that around half their fraud-related revenue loss was a direct consequence of chargebacks.
Many of these are the result of clear cut fraud – where stolen credit card information is used to make a purchase without the authorization of the cardholder. But an increasing number of chargebacks are the result of ‘friendly fraud’, when an individual disputes a purchase, despite having authorized and received it.Read More