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

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.

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2016 is drawing to a close and the holiday shopping season is in full swing. From free shipping to major discounts, businesses are throwing in all sorts of different promotions to gain customer attention. But how well are these methods working? Which are worth the time and cost, and which are just wasted efforts?

At Shippo we recently surveyed both US-based consumers and US merchants to find out what shoppers are expecting, and what other businesses are offering. Here are some of our most important findings.

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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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In the world of CNP fraud, every day is Halloween. Excluding exposed fraud, which is fairly uncommon, perpetrators of online fraud go to lengths to conceal their identity and location in an attempt to fool eCommerce merchants. In this post, we provide an overview of the various techniques and methods employed by fraudsters to disguise themselves and give some pointers on how to identify these tricks for what they are.

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Fake Names

The most basic of ‘disguises’ used by fraudsters to to avoid getting caught are fake names. To make a fraudulent transaction appear legitimate, fraudsters employ the following methods: 

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The global B2C cross-border eCommerce market was worth $230 billion last year, and is predicted to grow significantly  hitting $1 trillion by 2020. Reshipping companies, which accept a package on the customer’s behalf and then forward the parcel to its final destination, play a central role in enabling cross-border eCommerce. This is especially true in emerging markets, which are projected to experience the strongest growth.

Online retailers generally consider reshipping companies, also known as parcel forwarding centers, freight forwarders, and reshippers, as a fraud indicator. This is because similarly to proxy servers, consumers can use rehsipping services to conceal their real location. The fact that risk scoring services will often trigger fraud alerts on orders shipping to reshipping companies also contributes to their negative reputation.

While it’s true that fraudsters use reshippers to try and cover their tracks, many legitimate customers also rely on these services. Merchants utilizing blacklists or rules-based fraud management systems are most probably unwittingly declining legitimate orders sent to reshippers. Whether you already sell globally or plan to start accepting non-domestic orders, it’s important to ensure you are well-equipped to accurately review international orders for fraud. In this article, we lay out the legitimate reasons for using reshippers and provide tips for distinguishing between the good and fraudulent orders.

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