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

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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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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The online gift card market is thriving. Ecommerce sales of gift cards are increasing by 29% YOY, and by 2018, the US gift card market is expected to be worth $160 billion, driven primarily by surging digital gift card sales.

Riskified’s work with Fortune 500 retailers who sell gift cards, as well as leading gift card-only merchants and P2P secondary gift card marketplaces, has afforded us enormous insight into the CNP fraud challenges facing gift card sellers. We have drawn on this experience to compile a report sharing data about fraud patterns in online gift card sales, and outlining best practices for anyone selling gift cards online. In this post, I share a few of the key findings that appear in the full report:

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We are excited to announce the addition of a new resource to our Buyer’s Kit: The CNP Fraud Lexicon. The Lexicon is a collection of the most pertinent concepts and expressions used within the fraud-prevention industry, all clearly explained. Our goal was to demystify many of the technical terms used by fraud analysts to describe fraudster behavior, benchmarking metrics, fraud prevention tools, and more.  

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Sneakers are a hot commodity, and an increasing preference for shopping online is fueling overall growth across this vertical. Industry leaders like Nike and Under Armour announced big gains in online sales last year, a big reason why the global athletic footwear market is projected to balloon to $220 billion by 2020. But this rapid growth presents new challenges to sneaker retailers, among them preventing Card Not Present (CNP) fraud.

When it comes to coping with the high rate of CNP fraud in sneakers, there’s no substitute for experience. Riskified provides fraud management services to several sneaker retailers, 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 sneaker 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 report.

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Airlines and online travel agencies (OTAs) invest considerable funds and go to great lengths in an effort to prevent online fraud. But while trying to avoid chargebacks, many travel merchants impose strict rules and filters that block not only fraud attempts, but also good customers. In the highly competitive online travel market, wrongly declining a good order and failing to provide a great online experience can mean losing not only the deal, but also all of the customer’s future business.

International backpackers are a key consumer segment that airlines and OTAs falsely decline on a regular basis. In this article, I explain why online purchases by global travelers between the ages of 18-25 tend to set off red flags in fraud detection systems, and share stats showing how safe these customers actually are.

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For online fraudsters who spend all year hiding behind masks, Halloween is just business as usual. Fraudsters who obtain stolen credit card details and hide behind makeshift email accounts are especially fond of digital goods, because of their high resale value and instantaneous over-the-web delivery. These goods, mainly digital gift cards, airline and event tickets tend to attract the most sophisticated and devious fraudsters.

Over the course of several years, Riskified reviewed millions of orders, including many instances of obvious and subtle fraud. Below, we lay out some of the most common ‘‘tricks” we’ve identified which fraudsters use to swindle retailers. These includes tips on shady order elements to look for, as well as methods used by fraud rings that our in-house tools were able to identify, and which we think merchants should be aware of as they track and review orders.

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The stress of the holiday season is intense, and all the more so for eCommerce fraud teams. Soaring order volume means there is less time to thoroughly review orders, and teams that hire seasonal help to keep up with the load have to rely on analysts that are less experienced at the tedious task of uncovering Card Not Present (CNP) fraud. Among the influx of orders are many new customers who present a huge opportunity for merchants, but they can also appear threatening–especially if they’re from new and unfamiliar markets. It’s crucial for merchants to be prepared for the fraud patterns that are likely to emerge between Black Friday and New Years.

Riskified helps hundreds of eCommerce merchants manage their fraud during the busy holiday season. We’ve drawn on our experience to present some tips on analyzing and organizing your data, so that your fraud team is situated to optimally handle the surge in orders, drive revenue, minimize false-positive declines, and maintain a smooth shopping experience for your customers.

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Consumers are increasingly going online for their holiday shopping, with this season expected to generate the highest eCommerce order volume ever. Holiday shoppers present an enormous revenue opportunity to eCommerce retailers. However, this season is also a source of challenges for fraud teams: much of the order spike will come from hard-to-verify international cards, and since order amounts are greater, the stakes are higher on every approve/decline decision.

Riskified’s design team created the following infographic, which presents our fraud predictions for the upcoming holiday season. We hope this gives merchants and fraud teams valuable insights as they prepare to deal efficiently with what is expected to be the busiest and most successful holiday season to date.

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Package rerouting is one of the oldest tricks in the fraudster book. It generally begins with stolen credit card details, and continues with an online order that appears safe, complete with the stolen card’s billing details and a matching shipping address. What happens next is a headache many merchants are unfortunately familiar with: fraudsters reroute the package and have the goods delivered to their location (instead of to the cardholder’s home). For the merchant, the goods are unaccounted for, and a chargeback ensues shortly thereafter. Rerouting schemes have caught the attention of merchants and shoppers alike. The method of operation is quite straightforward, but its perpetrators have devised some sophisticated ways to keep merchants off guard.

Completely blocking the option to reroute packages may seem like an option, but could be a bad move in terms of customer experience, as there are many legitimate reasons customers would want to change the shipping address after placing the original order. Sometimes customers realize they will be at work when the package arrives, and others may prefer to have gifts shipped to an alternative address to maintain the element of surprise. So how can merchants protect against this type of fraud without increasing false declines or creating unnecessary friction? In this post I’ll share some tips on how to undermine fraudster efforts and to avoid incurring the associated losses.

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