This content was paid for and produced by Riskified in partnership with the Commercial Department of the Financial Times. Minimizing risk exposure is a core responsibility for CFOs in any organization. In ecommerce, the danger of a major fraud attack is always lurking, creating not only a constant threat of catastrophic losses, but also an ongoing forecasting nightmare – a concern especially acute for public companies. Chargebacks, in particular, are a forecasting wildcard. With legacy anti-fraud strategies, chargebacks represent a huge unknown: will a company lose nothing next quarter to cha ..read more

Accountability is the glue that holds our operations together. It's about taking responsibility for maintaining the integrity of our business environment. Just as we're responsible for the well-being of our families and communities, as executive leaders, we're accountable for our teams' success and the outcomes they achieve. However, confusion often arises between accountability and consequences. Consider hiring someone to park your car – if they damage it and you decide not to hire them again, that's a consequence. But you're still left with a damaged car that requires costly repairs. On the ..read more

Ever heard of the Australia Payments Network (AusPayNet) CNP Fraud Mitigation Framework? If not, you’re not alone. And you’re fortunate. Merchants taking card-not-present (CNP) payments in Australia often learn the hard way about this fraud-reduction program when they get dinged for excessive chargebacks by the Australian Payments Network (AusPayNet). How do we know? Because they frequently then call us for help: “What do I do now?” Riskified can help address the issue (see below) or can even help you avoid the situation altogether with a little understanding of how the Framework operates. He ..read more

Crime pays (a lot), according to Riskified data. Our recent analysis on how fraudsters make money shows it takes just 90 minutes of work per week for them to reap returns from malicious activity — and with a $30k weekly investment, fraudsters can generate more than $50k in weekly revenue. Despite this easy payday, there’s plenty that merchants can do to put fraudsters out of business. Breaking Down the Ecommerce Fraudster Business Model From obtaining stolen credit card details to buying and deploying a shopping bot and checking and tweaking strategy, the daily tasks of an online fraudster ar ..read more

Effective April 2023, Visa is launching the Compelling Evidence (CE) 3.0 initiative to update compelling evidence requirements for fraud category chargebacks. Merchants who submit evidence adhering to the updated criteria will not only successfully overturn the chargeback, but will also shift liability to the issuer. Previously, liability shift could not be obtained using the chargeback dispute process, only by implementing authentication at the time of purchase (e.g. using 3DS). Under Visa CE 3.0, merchants can shift liability to the issuer by establishing a legitimate purchase pattern accor ..read more

May 11, 1997, was a watershed moment. Gary Kasparov, then the no. 1 ranked chess player in the world, lost a match in under 20 moves to IBM’s supercomputer Deep Blue. Despite a temporary rally, the match ended with a 3.5-2.5 win to the machine, reversing Kasparov’s triumph just 15 months earlier.  The famous match was seen as a sign that Artificial Intelligence (AI) was catching up to human intelligence. IBM’s then-CEO Louis Gerstner announced, "what we have is the world's best chess player vs. Gary Kasparov." The Weekly Standard summed up the event with an article titled “Be Afraid.” A ..read more

The Chargeback Guarantee model of fraud prevention is preferred by large eCommerce businesses because it leads to consistently wide margins and fraud cost predictability. In our decade of operation, it has been the foundation of thousands of thriving, long-term partnerships. The strength of the model is one reason that each year, 99% of our merchant partners choose to renew their relationship with us. Still, some providers in the fraud prevention space do their best to cast doubt about the model’s many benefits. In this article, we will address the five most pervasive misinformation circulati ..read more

Return policy abuse is on the rise, but existing fraud prevention tools simply weren't designed with this challenge in mind—until now. Riskified's Eyal Elazar, Senior Director of Product Marketing, and Joe Gelman, Product Marketing Manager for Policy Protect, offer their expert advice on how retailers can protect their bottom line and realize the true promise of tailored customer experiences. Why can't risk models designed to prevent card-not-present (CNP) fraud tackle return policy abuse alone? What makes it such a unique problem? CNP fraud certainly comes with its own complexities– but comp ..read more

The world is at a turning point as it exits an era of digital transformation. Ecommerce is still on a growth trajectory and is estimated to reach $8.14 trillion in global revenue by 2026 despite the hits it took in 2022. However, faced with rising energy and goods prices due to rising geopolitical tensions, global inflation, and reduced spending power, consumers will be making different choices in the year ahead. Retailers will need to follow suit, paying special attention to these four intensifying eCommerce trends for 2023. Ecommerce Trend 1: Consumers are rethinking habits Ecommerce Tren ..read more

A new survey reveals that consumers are taking advantage of retailers' policies to obtain goods through fraudulent returns, wardrobing, coupon fraud, and more. In early November 2022, Riskified surveyed 1,000 U.S. eCommerce shoppers about their attitudes toward retail return fraud or policy abuse. Consumers answered if they had ever done any of the following actions to exploit a merchant's goodwill policies: Opening a new email address to get more coupons or discount codes Claiming an item wasn't received to get a refund, despite receiving it Not sending back an item after receiving a refund ..read more