Riskified’s Post

A whopping 10% of online purchases end up being returned, and a surprising portion of those are fraudulent. This statistic from the National Retail Federation isn't just alarming - it's a call to action. The e-commerce landscape is constantly shifting, and with it, the menace of return fraud grows... Silently chipping away at profits. It’s not just an isolated issue; it's an epidemic costing businesses a fortune. So, what's really happening when customers hit 'return'? Here are some common techniques in Return Fraud: • Wardrobing: Buying an item, using it briefly (like for an event), and then returning it - sound familiar? • Bracketing: Buying numerous variations (colors/sizes) of a product, then return all but one. • Counterfeit Returns: Returning knock-offs while keeping the real deal. This goes beyond mere financial loss; it's a matter of trust erosion. When dishonesty infiltrates, the cost is shared by all. But, how can brands combat this? Here's some ideas to consider: 1. Leverage Data: Monitor user return patterns of customers for unusual activity. 2. Transparent Policies: Ensure return policies are unambiguous and well-communicated. 3. Strict Quality Checks: Implement thorough inspections of returned items to catch fraud. 4. Support Before Purchase: Help customers find what they need before they make the purchase. The takeaway is simple yet profound: As e-commerce evolves, our strategies to uphold integrity and profitability must also advance. We’re all striving for a future where honest consumers and businesses can thrive together. What other ways would you recommend to combat return fraud?

The 2024 Global eCommerce Payments & Fraud Report This year's report sheds light on the evolving landscape of eCommerce payments and fraud, offering clear, unbiased insights gathered from a global survey of more than 1,100 merchants. Participants span a broad spectrum, from small businesses (SMBs) and mid-market players to enterprise-level entities, representing over 35 countries across North America, Europe, Asia-Pacific (APAC), and Latin America (LATAM) regions. The 2024 Global eCommerce Payments and Fraud Report delves deep into the perceptions and trends as reported by merchants worldwide, equipping you with the knowledge to navigate the complexities of the eCommerce environment. This essential resource offers an in-depth look at the challenges and opportunities facing the industry, empowering you with the data needed to make informed decisions and strategize effectively for the future.

We cover you! Check out our white paper on fraud and other risks in E-commerce. #trust #ecommerce #partnership

Back-End Protection? Clearing to Capture? PayFac? If these terms are completely Chinese to you, you might want to check out The Ultimate Chargeback Dictionary, which incorporates 120+ Essential Chargeback Terms for e-commerce Merchants. Dive into the full resource here: https://lnkd.in/dn9H99hS

There were a few things about Target's announcement to stop accepting checks that got me thinking: 1️⃣ The retailer said it would stop accepting checks (effective today) due to "extremely low volumes.” Really? If the volume is that low, why bother to stop taking them? 2️⃣ Target said it has “taken several measures to notify guests in advance to aid an easy and efficient checkout experience.” Really? Like what kind of measures? Seems very unlikely that they sent emails to their check-writing customers. They probably placed signs in the store. But how often do their check-writing customers visit a Target store? And likely would they be, even if they were in a store. The story about the check rejection policy was reported on July 10, with the policy going into effect today, July 15. Was that really enough time to give their check-writing customers notice of the new policy? 3️⃣ In its press release, Target referred to its customers as "guests" (see quote in previous bullet point). Really? Guests? Who are they fooling? FYI Target, your "guests" like to use their rewards credit cards when paying at your stores. Are surcharges and other attacks on the card system any way to treat your "guests"? https://lnkd.in/eV6_5MYj #payments #checks #retail #banking

Time for end of year predictions, and I'm going to start with the easiest one: In e-commerce, 2024 will be the year of returns. It's always cat and mouse with fraudsters. As I look back at my predictions over the last 7 or 8 years, the trend went from stolen credit card numbers to synthetic fraud/account creation fraud, to account takeover, then to first party chargebacks. As retailers have tuned solutions to each of these scams, the bad guys move on to the next thing. Easy money for e-commerce is a thing of the past and profitability has risen in importance relative to growth. The fattest chunk of expenses ripe for savings comes from the generous return policies that have built consumer trust in online shopping. Returns are abused by all sorts of vectors, from straight 3rd party fraud to over use by low profitability customers. Look for return policies to get tighter in 2024 and more personalized as retailers match friction to their customer expected value and risk models, making returns easier for good and low risk customers and harder for others.

Exciting! The MRC 2024 Global eCommerce Payments and Fraud Report is now available, offering groundbreaking insights into the evolving landscape of eCommerce payments and fraud. The Report is compiled from responses of over 1,100 merchants across more than 35 countries, diving deep into payment acceptance, fraud management, and the strategic tactics shaping the future of online commerce. Download your FREE copy of the report here  https://lnkd.in/gVCahqaj #eCommerce #GlobalPayments #FraudPrevention #MerchantRiskCouncil #boardmember #data

The MRC 2024 Global eCommerce Payments and Fraud Report is now available, offering groundbreaking insights into the evolving landscape of eCommerce payments and fraud. Now in its 25th year, the Report is compiled from responses of over 1,100 merchants across more than 35 countries, diving deep into payment acceptance, fraud management, and the strategic tactics shaping the future of online commerce. Download your FREE copy of the report here 👉 https://lnkd.in/gVCahqaj #riskmanagement #payments #fraudprevention

Last year, approximately 40% of cardholders replaced their cards as a result of the card expiring, getting lost, or being compromised by fraud. This often results in a broken checkout experience including canceled subscriptions, service disruptions, and declined transactions, which frustrates customers and negatively impacts loyalty.  Check out the latest PYMNTS interview with Forter’s Head of Financial Partnerships, Jeff Hallenbeck, as he dives into the history of tokenization and important considerations to create a seamless and secure customer experience.   #payments #frauddetection #fraudprevention