All posts with the tag Fraud Team Management
Portero Luxury launched in 2004 as an online marketplace for consumers looking for pre-owned or rare luxury items. Based in New York City, Portero’s inventory includes the world’s most recognizable fashion designers such as Chanel, Hermes, and Bulgari. In an industry where consumers expect quality, the company sources every article from vetted suppliers and has live chat representatives available on their website to provide quick and accessible customer support.
We interviewed Alexis Clarbour, Director of Portero, who shared her tips for building a strong brand, optimizing customer experience, and combatting fraud. Clarbour also spoke about the substantial positive impact the company’s partnership with Riskified has had on its acceptance rate of international transactions.Read More
Unfortunately, those tasked with preventing CNP fraud often lack the required resources to achieve optimal performance. In fact, over 50% of the merchants surveyed in the Merchant Risk Council’s (MRC) 2015 Global Fraud Survey cited ‘lack of sufficient internal resources’ as one of the top three eCommerce fraud challenges they faced in the past year.
Senior executives do not allocate sufficient resources to fraud management because they fail to appreciate the true impact fraud operations have on their business as a whole. Risk and fraud professionals, meanwhile, struggle to clearly present the business case for investing in fraud operations to their superiors.
Along with our colleagues at the MRC, Riskified created the Cost of Fraud Calculator – a free, interactive tool that presents a holistic picture of the true cost of fraud for an organization and visualizes the business impact in a manner that can be shared with executives. Our hope is that senior managers will be more open to allocating resources to fraud management operations once they see the impact on sales revenue and customer experience.Read More
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.Read More
As a risk management service that specializes in fraud prevention and data analysis, we understand the power of reporting tools and performance tracking. Our customers value information that helps analyze exactly what is going on in their sales pipeline – order review included. That is why we continue enhancing the features and analytics presented via the Riskified dashboard.Read More
For online retailers, CNP fraud is a serious problem that will only get larger as the eCommerce market continues to grow. According to a recent report, fraudulent eCommerce transactions are projected to increase by 55% over the next 3 years, reaching approximately $18.5 billion by 2018 in the US market alone.
Despite this harsh reality, senior management isn’t giving this issue the attention that it deserves, as executives fail to recognize the correlation between fraud management and the company’s overall growth and success. It is common practice for fraud prevention to be assigned as a secondary task to the customer service or payments teams, and the resources allocated to handle fraud are insufficient. On top of that, fraud managers’ success is measured in very narrow terms. The wrong incentives and performance metrics are being put on the people managing fraud – more focused on lowering chargebacks than on protecting revenue.
In this post, we set-out the value of fraud management operations as a whole, and why it is imperative that senior management play a larger role and assume responsibility for this issue.
Why eCommerce CEOs Should Care About Risk Management
C-suite managers in eCommerce companies need to pay greater attention to online fraud management operations, because failing to appreciate the importance of risk management can negatively affect the entire organization’s success in a number of ways:Read More
The importance of avoiding shipping delays to keep customers happy is something eCommerce merchants understand well. One factor that drives delays is that orders can get ״stuck״ in the manual fraud review queue, awaiting approval. To avoid a backlog in the queue, merchants usually either hire additional analysts to join the manual review team or invest in improving the automated decisioning process so that less orders are routed to manual review.
In the 2014 Merchant Risk Council Fraud Survey, online merchants reported an average manual review time of 15 minutes per order, not at all bad. Unfortunately, we still see cases of merchants who don’t suffer from lack of resources but leave orders “sitting” in the queue for hours and even days. Orders are delayed not because the merchant cannot handle the load, but because of order review policies. The risk management team is instructed to reach out to customers for additional information in case of certain problematic characteristics, such as missing AVS information or a mismatch between the BIN country and shipping country. The orders are put “on hold” while the risk management team waits to hear back from the customer who placed the order.Read More
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.
Last week, we shared our experiences in hiring, training and developing a world-class risk team with merchants worldwide via two informational webinars in partnership with the MRC.
If you missed out, we’ve included a snapshot summary below for how to find the right people to build your risk team. For the full picture on hiring, training and developing world class fraud analysts, you can watch the full webinar recording here.
One of the biggest challenges of managing an operational team is staying one step ahead – spikes in inbound order volume happen throughout the year, and whether the result of the holiday season, promotional sale, or a successful marketing campaign, being proactive is paramount to ensure customer satisfaction and maximize sales conversion.
During these waves, many operational services provide flexible, on-demand solutions that can be activated for a specific period of time, without any disruption to the regular order flow. For example, UPS can provide scaled shipping solutions, and inventory operations, like manufacturing and storage, can adjust their volume and capacity as needed. If you host your shop on an ecommerce platform like Shopify or Magento, for instance, the platforms will automatically launch servers if the site is overloaded with traffic.
An often-overlooked part of an online business that can also benefit from a scalable on-demand solution is risk management and order review. When you suddenly receive an influx of orders, it can be beneficial to have a trustworthy service you can rely on to support the additional load. Once you integrate with such a service, you can begin automatically submitting orders for review, relieving pressure, and giving you peace of mind during high-volume periods.Read More