All posts with the tag eCommerce Fraud
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.Read More
Most of you have heard of Tinder: the highly addictive (or so I’ve been told) dating application. Since launching in 2012, the original swiping app has generated over 20 billion matches which, yes, is far more than the number of humans on the planet.
A lot of Tinder’s success can be attributed to very advanced algorithms which ensure that people with high probabilities of mutual interest are shown to each other. That’s right: the profiles displayed to Tinder users are not shown in random order, they are placed very deliberately.
The specifics of the algorithms are kept secret to prevent users from gaming the system and competitors from stealing it. But we do know a big part of their technology is built on a platform called elastic – and Tinder generates 280 million queries on this system every day.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.
When it comes to protecting their revenue from fraud, airlines and online travel agencies (OTAs) find themselves in a catch-22. Strict rules and fraud filters reduce chargebacks, but given that clear-cut fraud only occurs in approximately 2% of card-not-present flight orders, these measures also inevitably lead to costly false declines and disgruntled [ex]customers.
In this post I discuss how airlines and OTAs can manage this conflict by using data from a range of sources to evaluate orders containing mismatches, rather than relying on discrete data points to identify and block ‘suspicious’ customers. By investigating online shopping behaviour through less formal fraud detection techniques, online sellers can leverage their data to get ahead of the game and boost online revenue.Read More
With over 1.2 billion international tourist arrivals registered worldwide in 2015, the online travel industry is experiencing an explosion in demand. Online travel merchants can take advantage of the growing number of travelers who use digital channels to book their flights. Digital travel sales in the United States alone were valued at over $200 billion in 2015, and globally, it is projected that online travel revenues will reach $762 billion by 2019.
Riskified’s work with leading travel merchants, as well as Fortune 500 companies across verticals, has given us great insight into helping merchants overcome the CNP fraud challenges they face. We are currently in the process of compiling a report sharing data about fraud patterns in online travel, and best practices for travel merchants looking to safely increase approval rates. Following is a sneak peek at the report, which will be published in the coming weeks.Read More
As the global eCommerce market grows and fraudster methodology evolves, new fraud management approaches and tools are being introduced at a fast pace. Trying to stay on top of developments in the eCommerce fraud prevention landscape can be overwhelming and time consuming.
Riskified is proud to present the eCommerce Fraud Solution Buyer’s Kit, a comprehensive series of resources designed to guide executives, decision makers, and procurement professionals through the process of assessing current fraud management performance and understanding which available approaches and solutions can best meet their needs.Read More
As consumers increasingly go online to make their purchases, luxury fashion retailers are poised to realize huge gains in eCommerce revenue. It’s estimated that the market for online luxury goods will be worth more than 20 billion euros by 2018. Moreover, the move towards digital purchases will only accelerate this trend. Last year, US consumers were expected to spend half of their budgets for luxury fashion and accessories online.
Riskified works with many luxury fashion businesses – including FarFetch, Vestiaire Collective, and Ssense. Our experience with these retailers has given us great insight into what card-not-present (CNP) fraud patterns look like within this industry. In this post, I share these insights and discuss what measures retailers can take to protect themselves without negatively impacting sales.Read More
Customer acquisition is tough work. Whether your online store does a few thousand or many million of dollars in monthly revenue, driving traffic to your site and converting visitors into loyal customers is no easy task. Many eCommerce merchants spend significant funds and resources on marketing to ensure the right people find their store and buy their merchandise. But did you know that many of those businesses are actually losing a meaningful percentage of their advertising budgets to eCommerce fraud?
You might think, ‘well, how does eCommerce fraud affect marketing budgets?’. Let’s look more closely at eCommerce fraud. According to the latest estimates, US-based eCommerce merchants lost over $3.4 billion in revenues due to fraud last year. That figure is set to double by 2018. While there are many eCommerce fraud prevention solutions available today, most still require human oversight and manual review of orders.Read More