It’s no secret that millennials spend a lot of their money shopping, and unsurprisingly 67% of younger consumers prefer purchasing online. US college students alone have an estimated buying power of $523 billion, and with a lifetime of online shopping ahead of them, they are a highly lucrative eCommerce growth engine.
Yet many retailers fail to consider how their approach to fraud is preventing the maximization of profits from college-aged consumers. In this blog, I share some insights about their importance as a consumer demographic. Better understanding fraud patterns can assist merchants in nurturing these young customers and tapping into this safe revenue stream.
It’s hard to imagine what the internet would look like without Google Analytics. It’s a powerful tool for eCommerce retailers to understand the efficacy of their online marketing campaigns, learn about their online customer base and optimize their various shopping pages.
But it turns out that this web beacon is good for more than just analytics.Read More
What is an AVS mismatch? And how does it apply to fraud?
AVS (Address Verification System) was designed to combat CNP (Card Not Present) fraud. The idea behind AVS is simple: cross-referencing the numeric elements of the billing address provided by the buyer with the numeric portions of the billing address on file at the credit card issuer will enable merchants to verify that the buyer is the rightful cardholder.
Payment processors encourage merchants to set automatic AVS mismatch filters as an anti-fraud measure. However, many merchants who use these filters do not realize that a full AVS match does not ensure a transaction isn’t fraudulent. On the flip side, orders with AVS mismatches are often legitimate. In this post, we will show what AVS rejection means and why rejecting orders solely based on AVS information is a bad idea.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 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