“I would say Riskified changed our lives.”
Eileen Shulock, VP eCommerce at Kirna Zabête
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All posts with the tag Declines

Fraudsters employ all sorts of tricks to deceive online retailers and get away with eCommerce fraud. In previous Halloween posts we shared best practices for deciphering between good and bad orders, as well as tips for unmasking fraudsters (while keeping false declines to a minimum).

This Halloween, we’ve decided to put our readers to the test! Take our quiz, based on data from real orders we’ve reviewed, to find out if you’re easily tricked, or could cut it as a fraud analyst!

Good luck…

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Shoppers don’t arrive at your eCommerce store by chance. They either typed in your URL directly, arrived via search engine, or clicked a link on some other website. Merchants usually use this information to maximize the quantity and quality of their site visitors. But one aspect that tends to get overlooked is the rate at which channels are bringing fraudsters to your site.

With a better understanding of this traffic, merchants can concentrate marketing resources on channels with less fraud, and even improve their fraud detection accuracy.

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As the eCommerce market continues to grow, so does card-not-present fraud. However, many online retailers don’t realize that more money is lost to false positive declines – purchases wrongly identified as fraud attempts – than is lost to actual CNP fraud. For retailers, there’s no simple way to determine how many of the orders declined due to suspected fraud should actually have been approved. But just because it’s not easy to quantify, doesn’t mean it’s not an important problem.

We created this infographic to shed light on false declines – the silent revenue killer. The infographic is based on Riskified’s internal data as well as on research conducted by Javelin Strategy.  By illustrating the scope of the false declines issue, we hope to show retailers how much they stand to gain by working to eliminate this problem. 

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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.

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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.

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Despite being critical to the profitability and success of eCommerce companies, online risk management and fraud prevention is often assigned as a secondary task to the payments or customer service teams. In fact, many businesses are reluctant to hire a designated risk management professional or team and will only do so after being hit with a significant fraud attack.
In this post, we’ll outline the problems this pervasive mentality creates, and explain why adopting a different approach to risk management is financially worthwhile to your organization.

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