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

Browsing and buying products on a mobile device is quick, easy, and on-demand — three words consumers often use to describe a positive shopping experience. That’s why mobile commerce, or mCommerce, is one of the most popular shopping channels for consumers. Last year, US shoppers alone spent $208.1billion via mobile, or 39.6% of total retail eCommerce sales, and mCommerce is expected to represent the majority of eCommerce spending by 2021.

In response, merchants have invested heavily in their mobile offerings, from creating their own apps to adapting their websites for mobile browsing. However, there is one part of the mCommerce customer journey that merchants commonly fail to optimize: the mobile-order fraud-review system.

There is a serious cost to this failure, as mobile orders report the highest rate of cart abandonment during the checkout process and above-average false-decline rates when compared to other shopping channels. And yet we continue to see merchants apply the same fraud-management tactics and strategies they use for their overall eCommerce operations to their mCommerce channels and orders. Why does this matter? In short, it ruins their customers’ experience on the most popular shopping channel and biggest source of traffic by adding easily avoidable friction.

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In this Age of the Customer, delivering a frictionless experience is sine qua non for viability. The balance of power has shifted from seller to buyer: with unlimited access to information, the proliferation of distribution channels, and the abundance of choices right at their fingertips, modern consumers have never been so influential on how business gets done.

The annual spending power of millennials—closely followed by the nascent Gen Z—amounts to a staggering $200 billion. By next year, these digitally adept generations will make up two thirds of the global population, disrupting market fundamentals. Customer-centricity is here to stay, and companies unable to provide frictionless value to their customers aren’t. This blog post examines how online businesses can stay ahead and find the best strategies to win over these new types of consumers.

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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.

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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.

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The holidays are only a few weeks away, and fraud teams are gearing up for yet another record-breaking season; sales forecasts call for a 10% to 16.6% volume increase over last year. To help fraud teams prepare for the order surge, we took a close look at last year’s holiday shopping and fraud patterns. Here’s what we found.

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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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No merchant is immune to the risk of attack from sophisticated fraud rings. And even if you think your eCommerce store is handling that risk well, complacency is a dangerous choice. Threats from fraud rings often arise unexpectedly and the strategies and schemes they use are continuously evolving.  

On average, fraud costs merchants 8% of their annual revenue, and fraud rings account for much of the large-scale fraud that merchants encounter. In this post, I examine the dangers posed by fraud rings and provide actionable tips to help businesses detect and foil these attacks.

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Riskified is pleased to share our ‘Visualizing eCommerce’ series, a new interactive medium our readers can use to review data they don’t usually have access to, mainly around eCommerce fraud. Our first installation is a world map, organized according to approval rate categories.

Geographic data is based on IP address. Hovering over each country will reveal which industry encounters the highest and lowest rates of fraud, as well as the highest and lowest cart values.

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Everyone has heard about it by now. Equifax, a provider of credit scores, was hacked between May and July of this year. PII (Personally Identifying Information) for about 140 million Americans was potentially compromised, as well as the details of over two-hundred thousand credit cards.

We’ve been hearing a lot of concerns from merchants that the Equifax breach could result in more fraud attacks and chargebacks for their eCommerce stores–and wondering if they need to be more cautious in approving orders now. But despite some recent scary headlines, we’d like to urge eCommerce retailers to stay calm. Overreacting to this breach is likely to cause more problems than it solves.

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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.

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