All posts with the tag eCommerce Fraud Prevention
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
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
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
Global online retail sales are projected to exceed $2 trillion in 2017, and double to $4 trillion by 2020. Despite this rapid growth, selling online is not without its challenges, and eCommerce merchants are increasingly seeing their hard-earned revenue fall victim to CNP fraud and the associated chargebacks. A 2016 study confirmed this, with online merchants reporting that chargebacks accounted for much of their fraud-related revenue loss.Read More
It’s expected that by 2019 more than 60% of total global online retail sales will be made via mobile devices. According to the 2017 Global Fraud Survey, while more than 80% of merchants support mobile shopping, only 52% actually track fraud rates by channel. To make the most of this expanding segment and account for the growing share of mobile shoppers, online retailers will need to adapt CNP fraud management processes.
Riskified has extensive experience preventing CNP fraud across channels. We have processed millions of mobile orders for online businesses, including Fortune 500 companies. By analyzing our data, we determined how mobile fraud compares to desktop and compiled our findings in a special report. The report provides retailers with tips and actionable advice for adjusting fraud management process to effectively handle mobile transactions without compromising the shopping experience.
Our design team has created the following infographic, which offers a visual sample of some the insights covered. For more information on fraud prevention best practices, download a free copy of the full report.Read More
Mobile commerce (mCommerce) is quickly becoming the first choice of consumers across the globe, with over 2 billion smartphone and tablet users expected to make at least one mobile transaction in 2017. Thanks to its appeal to young shoppers, mobile has now surpassed desktop in terms of eCommerce transaction volume. And with consumers in emerging economies increasingly accessing the internet via mobile devices, mCommerce is likely to become the preferred digital shopping method of the future. According to forecasts, more than 60% of total global online retail sales will be made via mobile by 2019.Read More
We usually think of online fraudsters as liars – that the success of their operation depends on how convincingly they can pose as the legitimate card holder. But CNP fraudsters’ hands are forced when it comes to revealing their location, and ultimately they have to give their real shipping address when purchasing tangible goods, or else they won’t receive them.
Riskified has processed millions of orders across online verticals, from which we’ve drawn enormous insight into the ways fraudsters use nontraditional shipping methods to obscure their physical location in order to receive stolen goods. We have drawn on this experience to compile an eBook detailing these classic tricks, as well as tips for distinguishing fraudulent orders apart from safe – even if unusual looking – ones.Read More