NYC Meetup - Riskified
•Download as PPTX, PDF•
0 likes•1,571 views
A presentation with Sarah Sheldon, Associate Director of eCommerce of Rebecca Minkoff, and Sarah Roden, Account Manager at Riskified, on eCommerce fraud prevention.
Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Similar to NYC Meetup - Riskified
Similar to NYC Meetup - Riskified (20)
Recently uploaded
Recently uploaded (20)
NYC Meetup - Riskified
- 1. July 20th 2017 NYC Meetup Featuring
- 2. Partnership Overview Sarah Sheldon, eCommerce Associate Director at Rebecca Minkoff
- 3. OUR DESIGNER OUR CEO
- 4. WestHollywood, CASoho,NY SanFrancisco,CA Chicago, IL USA Real Story Most technologically advanced stores in retail
- 6. How did we get here?
- 7. Immediate Results ** Launching Riskified in May! • Reduced chargebacks by 84% between April and May • Reduced chargebacks by 87% YoY
- 8. Where Are We Now? • 97.6% approval rating and 0.02% chargebacks for 1H17 • ZERO chargebacks since February 2017 • Happy Banks + Happy Customers = Happy Employees + CEO
- 9. Why Should You Care? 3. Resources 1. Protection of customer 2. Cost 4. Data integrity
- 10. Thank You
- 11. Partnership Overview Sarah Roden, Account Manager, Riskified Fraud Management Pitfalls & Tips to Overcome Them
- 12. The Complexity of Fraud Management
- 13. Rise in chargebacks How can you stop them? Unexpected, unpredictable out of pocket
- 14. Bolster your manual review team Longer review & fulfillment times Pay for more enrichment tools Hire, Train, Maintain
- 15. Add new filters & update rules More out of pocket to maintain system Dev & maintenance resources
- 16. Rise in false declines rate Customer support takes the heat Lost sales & revenue Customers go to competitors Brand reputation impacted
- 17. The Result A heavy operation that is expensive to maintain, less scalable, and can’t be easily expanded to new segments, markets or payment methods
- 18. Which Order Would You Approve? Different billing & shipping personas Canadian billing address, US shipping address No AVS match Shipping address linked to a drop-off/re-shipper Large IP/billing distance Returning customer Merchant-issued credit card Billing/Shipping address match Safe email address with name that matches billing entity IP close to shipping/billing address Order A Order B
- 19. Tips to Drive Accuracy and Minimize Fraud
- 20. Data points have dynamic, varying weight in different scenarios Adopt a Holistic View • Mismatches are standard for gift orders • US re-shipper + International CC = legitimate pattern • Proxy + China make sense when they’re together
- 21. Compare multiple data points to cover legitimate deviation Benchmark • Identify anomalous behavior (fraud rings) • Recognize returning customers even if they changed their name or moved
- 23. Blacklists can’t substitute a comprehensive fraud review process Ditch the List • Blacklists tarnish entire buildings, dorms, reshippers • With whitelists, Account Takeover attacks hit harder
- 25. International credit cards are lucrative and safe Embrace International Business • Many merchants decline international payment methods or orders from specific countries • For many US merchants, ~10% of order volume comes in from overseas
- 26. Others have likely faced the problems you’re encountering Learn From Your Peers • Join the MRC community and talk with merchants • Compare stats with colleagues in your industry or in a vertical that carries similar risk
- 27. Takeaways 1. 1. Holistic fraud review process 2. 2. Ditch the lists 3. 3. Think international
- 28. Order Examples
- 29. Order Example: $148 Rebecca Minkoff Bag Different billing & shipping personas Canadian billing address, US shipping address No AVS match Shipping address linked to a drop-off/re-shipper Large IP/billing distance Detractors:
- 31. Fraud Review with Sharp Vision IP address associated with corporate domain Shipping address adjacent to border (Detroit) Canadian taking advantage of free shipping in the US Billing persona linked to domain (employer) via LinkedIn
- 33. Order example: 5 $1,500 MacBook Pros Returning customer Merchant-issued credit card Billing/Shipping address match Safe email address with name that matches billing entity IP close to shipping/billing address Protractors:
- 35. Fraud Ring/ATO Identification Tools High velocity alert (email domain, product, premium shipping) Order parameters link to fraud ring/ATO activity This order + ensuing orders were declined and affected merchants were alerted
- 37. Thank you for your time!
- 38. Questions
Editor's Notes
- In 2005, Rebecca designed her first handbag, which she soon dubbed the “Morning After Bag,” a.k.a. the “M.A.B.” This iconic bag ignited Rebecca’s career as a handbag designer and inspired her “downtown romantic”-themed designs in the years to come. Rebecca’s success was further enhanced by the support of her brother and the company’s CEO and co-founder, Uri Minkoff, who helped usher in and pioneer the company’s industry-leading social media efforts. + putting customers up front & center (drives the company goals) Today, Rebecca Minkoff is a global lifestyle brand with a wide range of apparel, handbags, footwear, jewelry, accessories (including tech), and watches, as well as men’s clothing and accessories under the label Uri Minkoff. The brand has four domestic retail stores, two international locations, and is distributed in over 900 stores worldwide. Uri Minkoff, a serial entrepreneur and co-founder of Rebecca Minkoff, by a female millennial designer. Uri is well known as the most forward thinking CEO in fashion, especially when it comes to the innovative use of new technologies and the omnichannel customer experience. He is a highly sought after speaker on the nexus between fashion, retail and emerging technologies. Uri founded the company in 2005 with his sister Rebecca and also serves as the Creative Director for the brand’s men’s line.
- Long before I arrived, we were offered a fraud management system … for FREE Rules were in place, but there was no proactive way of managing fraud Each time there was an issue, it was reactive tweaking done to the system – very manual and very costly to the company eCOMM team had 2 goals when they set out for a new partner: 1. need a proactive fraud management partner to help us prevent fraud 2. that would also have a favorable acceptance rate May 2016 RM officially launched with Riskified and IMMEDIATELY saw a drop in chargebacks
- Why Care? Protection of Customer – she trusts us enough to come to the site and enter her information – retail on a website – treat your customers well Costs you too much not to care –chargebacks to your bottom line Resources wasted on managing chargebacks, managing rules, managing orders – (vs. creating revenue generating business opportunities) Data integrity – bad customers in, bad programs out. How can teams properly manage marketing and customer segments if the wrong customers get to purchase and the right ones get blocked out?
- RM had great results, not unique to them, this is how you can do it too Intro – AM, work with RM, many verticle, work analysts, provide insights Help partners reach KPIs because everyone comes to Riskified for different reasons – diff goals in mind Open discussion
- Biggest challenge currently facing in ecomm
- We all know fraud is big headache
- Fraud increases as online presence grows Ill-equipped to catch fraud --> chargebacks grow Unpredictable costs that can detrimental to margins Leaving ourselves to ask, how to stop fraud?
- So one way/option Bolster manual review team- expensive to maintain Spending on salaries, plus data enrichment tools to help the people you have hired Demanding 24/7 job Results to lag to get orders to fulfillment
- Another method for managing fraud Adding filters and rules as time goes on to streamline review process But, this requires dev resources and ultimately leaves good orders on the table Discover certain patterns on fraudulent orders; billing shipping mismatch, AVS, CVV, the works Takes time to Balancing act of fighting fraud but not declining good orders
- At the end of the day, Customer support takes the heat from legit customers who have been declined
- To sum it up, you've ended up with a bulky and expesnive process
- Will get back to it Raise hand
- Fraud is complicated Day to day for many of you Share some best practices from our experience Achieve growth like RM while mitigating fraud I’m sure most of you know how hard it is to manage fraud in-house Now, share some best practices we’ve learned Industry experts in combatting these issues Want to share tips with you
- One of the strategy YOU should do Avoid declining an order based on one data point because it doesn’t tell the whole story
- name, address, email, cc, IP, device, product, shipping type, To ensure you don't decline an order based on a single data point, Work email or personal email
- A visual to discuss the complexity of fraud, and how it is sometimes not a clear Yes/No, rather a complex statistical analysis These are just 16 of several hundred features that make up each Riskified model that decides orders. Visualization of a model Helps us connect the dots No one feature can decide an order on its own
- Blacklists and whitelists are sloppy substitutes for fraud review Recent ATO- d-link webcam being used as proxy, looks like you’re browsing from computer itself We saw it on electronics and gold, gift cards This I how sophisticated a fraud ring can be…
- Beacon identified this as a proxy
- You’re all here to grow your business , fraud management should helpyou do that, not impede it Int’l CC versus int’l shipping We’re fortunate enoughto have big base of int’l orders Find that many American e-comm companies shy away from international shipping or accepting int’l CC Europeans spend more from US sites, to make the more expensive shipping have less impact Growth strategy Considering int’l …. Some countris have bad reputation Because Riskified works partners with many companies outside the US, we have a large base of good customers around the world. We know these good customers are out there, would be a shame to deny them
- Merchant risk council , or other forums
- -fraud review holistic process -ditch the lists -think international
- https://admin.riskified.com/admin/cockpit/#/?order_id=82984160
- https://admin.riskified.com/admin/cockpit/#/?order_id=82984160
- https://admin.riskified.com/admin/cockpit/#/?order_id=211885214
- https://admin.riskified.com/admin/cockpit/#/?order_id=211885214