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Riskified
Winning Online with Fraud Management
Tasneen Padiath, VP of Sales and GM, APACTo a consumer, being falsely declined is insulting and an extreme nuisance. For merchants, it has a compounding effect. Falsely declining legitimate orders not only leaves significant revenue on the table but also erodes customer loyalty and brand reputation, especially with first-time buyers. According to Sapio Research, 33 percent of falsely-declined new shoppers abandon their purchase— and the retailer—for good.
Riskified is an eCommerce risk management platform that accurately differentiates between bad actors and legitimate customers in real-time, enabling merchants to mitigate fraud while reducing false positives.
Data from Riskified’s global merchant network fuels proprietary machine learning models that drive a sophisticated decision engine. Analyzing hundreds of data attributes per transaction and cross-checking them with the billions of historical orders in its database, the models generate real-time decisions with more than 99.8 percent accuracy.
This solution provides merchants with a clear “approve” or “decline” decision for each order, alleviating their need to decide on the “grey area” transactions that typically require additional time and effort to verify, create friction, and hinder scalability. Under Riskified’s Chargeback Guarantee solution, merchants are charged only for approved transactions, helping to lift their bottom line significantly.
“We've pioneered the Chargeback Guarantee model that enables our merchants to maximize their growth and keep their customers happy,” says Tasneen Padiath, VP of Sales and GM, APAC, Riskified.
While Chargeback Guarantee is the prime example of how it can benefit merchants, Riskified has more tools in its arsenal. For instance, Policy Protect helps merchants identify consumers taking advantage of their policies in abusive ways. Account Secure prevents customer accounts from takeover attempts by fraudsters. PSD2 Optimize enables merchants to minimize the effect of the European Union’s Revised Payment Services Directive on their eCommerce business.
Riskified’s solution relies on supervised and unsupervised machine learning, enabling merchants to see the big picture and pick up on non-intuitive patterns and subtle fraud trends. Unlike rule-based systems that require constant adjustment to block ever-changing fraud MOs, ML-powered fraud review automatically evolves according to the most recent risk trends.
In one instance, Finish Line, an established athletic footwear and fashion merchant implemented an automated and scalable fraud review solution to manage risk efficiently. Using Riskified’s Chargeback Guarantee solution, Finish Line increased their approval rate by four percent while keeping their chargeback rate under control.
We've pioneered the chargeback guarantee model that enables our merchants to maximize their growth and keep their customers happy
While Chargeback Guarantee is the prime example of how it can benefit merchants, Riskified has more tools in its arsenal. For instance, Policy Protect helps merchants identify consumers taking advantage of their policies in abusive ways. Account Secure prevents customer accounts from takeover attempts by fraudsters. PSD2 Optimize enables merchants to minimize the effect of the European Union’s Revised Payment Services Directive on their eCommerce business.
Most fraud prevention tools and solutions don’t adapt well to new business flows, markets, and product lines. Riskified’s technology drives sales safely across multiple business flows and local markets with dedicated models that can handle specific order segments. Riskified has built its platform from the ground up to support diverse needs and achieve the highest approval rate for merchants worldwide.
Company
Riskified
Management
Tasneen Padiath, VP of Sales and GM, APAC
Description
Riskified helps businesses realize the full potential of e-commerce by making it safe and frictionless. The world's largest merchants trust us to accurately identify individuals behind online interactions, maximizing their sales and minimizing the cost of their fraud operations.
Riskified News
Riskified Expands in Japan, Wins New Customers DMM.com, giftee Inc. and More
Riskified Appoints Jeff Otto As Chief Marketing Officer
“It’s an exciting moment to have Jeff lead the charge on marketing with Riskified reaching the crossroads of both growth and profitability,” said Eido Gal, CEO and Cofounder, Riskified. “Jeff has the ideal blend of experience and expertise we need to definitively establish Riskified as the preeminent risk management platform for the largest eCommerce merchants across industries, throughout the globe.”
Otto brings two decades of enterprise technology experience. He was most recently head of marketing at Marqeta, a global fintech category leader in modern card issuing and embedded finance serving many leading eCommerce disruptors. Prior to that, Otto held various senior leadership roles within Salesforce’s Industries Division, where he built and led marketing teams and successfully brought to market cloud solutions for financial services, healthcare and manufacturing. He also previously developed and delivered solutions within the technology divisions of Morgan Stanley and Merrill Lynch.
“More than ever, businesses are challenged with spurring eCommerce growth while driving cost efficiencies. What I love about Riskified’s value proposition is that it meaningfully helps merchants accomplish both. The platform’s superior accuracy in identifying and protecting against fraud and policy abuse helps increase revenue and profitability. I'm excited to lead a great team of marketers to articulate the tremendous ROI Riskified consistently delivers to merchants,” said Otto.
Riskified Partners with commercetools to Deliver Chargeback Guarantee at Scale
The integration streamlines merchant onboarding to Riskified’s award-winning fraud management platform
NEW YORK - Riskified, announced it has integrated with commercetools, a leader in building critical composable commerce innovation at scale, to deliver advanced fraud prevention and risk management solutions to merchants globally.
The collaboration establishes a partnership driven by innovation, enabling one of the most advanced ecommerce platforms to feature Riskified's acclaimed product, the Chargeback Guarantee. This product, recognized for its excellence, is backed by cutting-edge machine learning technology and a comprehensive global network of merchant data. By employing real-time analysis, Riskified ensures the security of ecommerce revenues and shields merchants from both financial losses and damage to their reputation. It achieves this by swiftly approving valid transactions and identifying and rejecting fraudulent ones. Riskified has also achieved integration with other major ecommerce platforms, including SAP Commerce Cloud, Salesforce Commerce Cloud, Adobe/Magento, Shopify, and VTEX.
This integration proves instrumental in empowering merchants who employ commercetools to effectively counteract the escalating impacts of payment fraud, all while maintaining a seamless customer experience. The accessibility of Riskified will be facilitated through commercetools' Integration Marketplace, providing merchants with a straightforward and seamless method to implement Riskified's Chargeback Guarantee solution.
“Merchants should never have to choose between stopping fraud and offering legitimate customers a friction-free experience, yet retailers often face this hurdle,” said Kevin Sprake, VP of Channel Partnerships at Riskified. “Our integration with commercetools helps us solve this problem for a larger pool of merchants, and we are confident that this collaboration will empower them to optimize operations, protect revenue, and provide a secure environment for shoppers.”
Endorsed by renowned brands such as Lululemon, Ulta Beauty, and H&M, among others, commercetools provides extensive commerce capabilities to merchants, empowering them to create and tailor customer experiences that align with their distinct requirements and objectives. Through the provision of exceptionally effective and visually captivating customer interactions, commercetools facilitates business expansion while concurrently streamlining expenses.
“At commercetools, our main mission is to support the success of merchants in today’s highly competitive eCommerce landscape,” said Blaine Trainor, VP Global Partnerships and Alliances at commercetools. “In integrating Riskified’s cutting-edge risk management solution, we underscore this commitment, helping merchants to cut costs associated with fraud while improving the overall customer experience. We are thrilled to have them as one of our partners.”
Both Riskified and commercetools share a dedication to supporting merchants in flourishing within the dynamic realm of digital commerce. Through the fusion of their specialized knowledge, these two entities are equipping merchants with the tools needed to surmount the hurdles associated with fraud and risk management. This empowerment allows merchants to prioritize the delivery of exceptional products and experiences to their valued customers.
NEW YORK - Riskified, announced it has integrated with commercetools, a leader in building critical composable commerce innovation at scale, to deliver advanced fraud prevention and risk management solutions to merchants globally.
The collaboration establishes a partnership driven by innovation, enabling one of the most advanced ecommerce platforms to feature Riskified's acclaimed product, the Chargeback Guarantee. This product, recognized for its excellence, is backed by cutting-edge machine learning technology and a comprehensive global network of merchant data. By employing real-time analysis, Riskified ensures the security of ecommerce revenues and shields merchants from both financial losses and damage to their reputation. It achieves this by swiftly approving valid transactions and identifying and rejecting fraudulent ones. Riskified has also achieved integration with other major ecommerce platforms, including SAP Commerce Cloud, Salesforce Commerce Cloud, Adobe/Magento, Shopify, and VTEX.
This integration proves instrumental in empowering merchants who employ commercetools to effectively counteract the escalating impacts of payment fraud, all while maintaining a seamless customer experience. The accessibility of Riskified will be facilitated through commercetools' Integration Marketplace, providing merchants with a straightforward and seamless method to implement Riskified's Chargeback Guarantee solution.
“Merchants should never have to choose between stopping fraud and offering legitimate customers a friction-free experience, yet retailers often face this hurdle,” said Kevin Sprake, VP of Channel Partnerships at Riskified. “Our integration with commercetools helps us solve this problem for a larger pool of merchants, and we are confident that this collaboration will empower them to optimize operations, protect revenue, and provide a secure environment for shoppers.”
Endorsed by renowned brands such as Lululemon, Ulta Beauty, and H&M, among others, commercetools provides extensive commerce capabilities to merchants, empowering them to create and tailor customer experiences that align with their distinct requirements and objectives. Through the provision of exceptionally effective and visually captivating customer interactions, commercetools facilitates business expansion while concurrently streamlining expenses.
“At commercetools, our main mission is to support the success of merchants in today’s highly competitive eCommerce landscape,” said Blaine Trainor, VP Global Partnerships and Alliances at commercetools. “In integrating Riskified’s cutting-edge risk management solution, we underscore this commitment, helping merchants to cut costs associated with fraud while improving the overall customer experience. We are thrilled to have them as one of our partners.”
Both Riskified and commercetools share a dedication to supporting merchants in flourishing within the dynamic realm of digital commerce. Through the fusion of their specialized knowledge, these two entities are equipping merchants with the tools needed to surmount the hurdles associated with fraud and risk management. This empowerment allows merchants to prioritize the delivery of exceptional products and experiences to their valued customers.
Back-to-School Deals and .edu Emails — How Much Fraud Risk Is There?
Brands aiming to establish enduring loyalty often adopt a strategic approach towards college students. The rationale behind this approach is that by forging a connection during the financially constrained college years, there is potential to secure a high-earning, lifelong customer.
College students not only represent a future market but also hold immediate value, particularly during the back-to-school period when they are equipping dorm rooms and procuring supplies. Consequently, major retailers such as Target, Amazon, Spotify, and Peloton extend discounted subscriptions and enticing promotional offers to students during the July to September back-to-school timeframe. Being a college student can lead to advantageous deals and discounts.
However, the use of .edu email addresses as a means to target students comes with its own set of challenges. While these addresses can open promotional avenues for students, they are also appealing to fraudsters, who can exploit them for their own gain. As per Riskified's 2022 data, orders linked to .edu addresses constitute a small fraction of online transactions (about 0.62%) and are generally less prone to fraud than non-.edu addresses. Particularly, well-established .edu addresses (in use for over seven days) are considered secure.
Despite this, the risk factor for .edu addresses increases during July due to the peak in back-to-school purchases. Retailers offering promotions during this period become targets for fraudsters who manipulate .edu email addresses or conduct email takeovers to exploit discounts. The timing is crucial; while new non-.edu emails are typically 150% riskier than new .edu emails, in July, the risk gap narrows.
Amid the unique buying habits and mobility of college students, effectively managing fraud without hampering order approvals can be challenging. To tap into the lucrative back-to-school market (predicted to reach $94 billion in 2023), retailers must distinguish between genuine student customers and potential fraudsters. Several strategies can help achieve this:
1. Utilize diverse data points: Merchants should leverage a variety of data points to differentiate between fraudulent actors and students who have not updated their addresses.
2. Identify potential red flags: Instances such as international students using foreign credit cards with domestic shipping addresses or discrepancies between IP addresses and billing/shipping addresses should be investigated further. The use of various keyboard languages can also indicate fraud but could merely reflect the behavior of international students.
3. Implement robust fraud detection technology: Employing AI-based fraud detection with chargeback guarantees is recommended, especially for new .edu email addresses without purchase history.
To manage fraud and reduce false declines, retailers must comprehend the unique, seasonal patterns of back-to-school shopping and their anticipated customer base. Addressing fraud necessitates a dynamic, innovative approach that challenges assumptions and adapts how purchases and account information are reviewed, thereby optimizing the potential of the back-to-school season.
College students not only represent a future market but also hold immediate value, particularly during the back-to-school period when they are equipping dorm rooms and procuring supplies. Consequently, major retailers such as Target, Amazon, Spotify, and Peloton extend discounted subscriptions and enticing promotional offers to students during the July to September back-to-school timeframe. Being a college student can lead to advantageous deals and discounts.
However, the use of .edu email addresses as a means to target students comes with its own set of challenges. While these addresses can open promotional avenues for students, they are also appealing to fraudsters, who can exploit them for their own gain. As per Riskified's 2022 data, orders linked to .edu addresses constitute a small fraction of online transactions (about 0.62%) and are generally less prone to fraud than non-.edu addresses. Particularly, well-established .edu addresses (in use for over seven days) are considered secure.
Despite this, the risk factor for .edu addresses increases during July due to the peak in back-to-school purchases. Retailers offering promotions during this period become targets for fraudsters who manipulate .edu email addresses or conduct email takeovers to exploit discounts. The timing is crucial; while new non-.edu emails are typically 150% riskier than new .edu emails, in July, the risk gap narrows.
Amid the unique buying habits and mobility of college students, effectively managing fraud without hampering order approvals can be challenging. To tap into the lucrative back-to-school market (predicted to reach $94 billion in 2023), retailers must distinguish between genuine student customers and potential fraudsters. Several strategies can help achieve this:
1. Utilize diverse data points: Merchants should leverage a variety of data points to differentiate between fraudulent actors and students who have not updated their addresses.
2. Identify potential red flags: Instances such as international students using foreign credit cards with domestic shipping addresses or discrepancies between IP addresses and billing/shipping addresses should be investigated further. The use of various keyboard languages can also indicate fraud but could merely reflect the behavior of international students.
3. Implement robust fraud detection technology: Employing AI-based fraud detection with chargeback guarantees is recommended, especially for new .edu email addresses without purchase history.
To manage fraud and reduce false declines, retailers must comprehend the unique, seasonal patterns of back-to-school shopping and their anticipated customer base. Addressing fraud necessitates a dynamic, innovative approach that challenges assumptions and adapts how purchases and account information are reviewed, thereby optimizing the potential of the back-to-school season.
Riskified Appoints David Meredith to Board of Directors
Seasoned Technology Leader with Proven Track Record in Scaling Technology Businesses
NEW YORK-- Riskified (NYSE: RSKD)announced the appointment of David Meredith to its Board of Directors.
“We are thrilled to welcome David Meredith to our Board of Directors,” said Eido Gal, CEO and Co-Founder of Riskified. “David brings extensive experience in corporate strategy, customer acquisition and organizational leadership having worked with, and led, a number of leading SaaS and cloud-based application businesses. David’s deep expertise and track record in scaling technology businesses aligns with our strategic priorities, and his appointment is expected to help Riskified continue to deliver long-term shareholder value.”
David Meredith expressed his enthusiasm for joining Riskified’s Board, stating, “I am honored to join Riskified’s Board of Directors at such an exciting time for the company. Riskified’s innovative approach to managing eCommerce fraud and risk intelligence makes it a leader in the industry. I look forward to working with Eido and Riskified’s leadership team as they continue to execute on their strategy to drive further growth and success for both their merchants and shareholders.”
Mr. Meredith has spent three decades serving in senior executive leadership and board director roles across both multi-billion-dollar public companies as well as private equity backed technology-focused firms.
As CEO of Everbridge, the global leader in software to provide resilience to organizations, Meredith led during a period of rapid growth which moved the company into the large-cap Russell 1000® Index and earned him the award for Top 50 “Best CEO 2020” in the Largest Company Category by Comparably. Prior to Everbridge, Meredith held leadership positions at Rackspace, CenturyLink, VeriSign, CGI, and Capital One Financial Corporation. In his role as CEO at integration-software leader Boomi, Mr. Meredith was also named as a “Best CEO 2022” for his work related to the spin-out of Boomi from Dell to become a stand-alone global company. Most recently he served as Board Director and Committee Chair for digital transformation leader SADA (an Insight company).
Mr. Meredith earned his master’s degree from the University of Virginia, where he serves on the UVA McIntire Advisory Board. He graduated with honors from James Madison University (JMU) with a Bachelor of Business Administration in Corporate Finance.
The Board of Directors regularly evaluates the composition of the Board and considers how the Board can maintain the appropriate mix of skills, qualifications and diversity of backgrounds to most effectively oversee the business and long-term strategy of the company. Following Mr. Meredith’s appointment, Riskified Ltd.’s Board of Directors will be composed of eight directors, six of whom qualify as “independent” under the listing rules of the New York Stock Exchange.
NEW YORK-- Riskified (NYSE: RSKD)announced the appointment of David Meredith to its Board of Directors.
“We are thrilled to welcome David Meredith to our Board of Directors,” said Eido Gal, CEO and Co-Founder of Riskified. “David brings extensive experience in corporate strategy, customer acquisition and organizational leadership having worked with, and led, a number of leading SaaS and cloud-based application businesses. David’s deep expertise and track record in scaling technology businesses aligns with our strategic priorities, and his appointment is expected to help Riskified continue to deliver long-term shareholder value.”
David Meredith expressed his enthusiasm for joining Riskified’s Board, stating, “I am honored to join Riskified’s Board of Directors at such an exciting time for the company. Riskified’s innovative approach to managing eCommerce fraud and risk intelligence makes it a leader in the industry. I look forward to working with Eido and Riskified’s leadership team as they continue to execute on their strategy to drive further growth and success for both their merchants and shareholders.”
Mr. Meredith has spent three decades serving in senior executive leadership and board director roles across both multi-billion-dollar public companies as well as private equity backed technology-focused firms.
As CEO of Everbridge, the global leader in software to provide resilience to organizations, Meredith led during a period of rapid growth which moved the company into the large-cap Russell 1000® Index and earned him the award for Top 50 “Best CEO 2020” in the Largest Company Category by Comparably. Prior to Everbridge, Meredith held leadership positions at Rackspace, CenturyLink, VeriSign, CGI, and Capital One Financial Corporation. In his role as CEO at integration-software leader Boomi, Mr. Meredith was also named as a “Best CEO 2022” for his work related to the spin-out of Boomi from Dell to become a stand-alone global company. Most recently he served as Board Director and Committee Chair for digital transformation leader SADA (an Insight company).
Mr. Meredith earned his master’s degree from the University of Virginia, where he serves on the UVA McIntire Advisory Board. He graduated with honors from James Madison University (JMU) with a Bachelor of Business Administration in Corporate Finance.
The Board of Directors regularly evaluates the composition of the Board and considers how the Board can maintain the appropriate mix of skills, qualifications and diversity of backgrounds to most effectively oversee the business and long-term strategy of the company. Following Mr. Meredith’s appointment, Riskified Ltd.’s Board of Directors will be composed of eight directors, six of whom qualify as “independent” under the listing rules of the New York Stock Exchange.
“We are excited to grow our presence in Japan and to be able to support more Japanese and global merchants in one of the most dynamic cross-border eCommerce markets in the world”
The Japanese domestic eCommerce market is the fourth largest business-to-consumer market in the world at USD $177.5 billion (JP Morgan). Growth in the sector has attracted fraud, with a 43% rise year-over-year in damages attributed to stolen credit cards (Japan Consumer Credit Association). Riskified’s machine learning platform leverages a global merchant network to analyze and provide real-time decisioning for card-not-present transactions, lifting approval rates and increasing online revenues.
As an example of Riskified’s success in Japan, DMM.com, one of Japan’s largest entertainment portal sites with over 39.14 million members (as of February 2022), recently chose Riskified’s fraud prevention solution, Chargeback Guarantee, for complete protection against fraud and chargeback costs. DMM.com joins giftee Inc. and other prominent Japanese companies in relying on Riskified’s risk intelligence platform, giving them access to fraud prevention analytics and insights through a fully localized dashboard.
“We are excited to grow our presence in Japan and to be able to support more Japanese and global merchants in one of the most dynamic cross-border eCommerce markets in the world,” said Anthony Guercio, Riskified Japan Country Manager. “Riskified’s fraud detection and prevention platform, through our Chargeback Guarantee offering, has a superior ability to guarantee fraud decisions 100% while improving our clients’ topline and their customers’ experience. Our decision to establish an entity in Japan demonstrates our ongoing commitment to the region.”
Kicking off a year of activities in Japan, Riskified will be present at eCommerce Fair Tokyo 2023, taking place February 9 and 10 at Tokyo Big Sight. The Riskified Japan team will welcome customers, partners, media and anyone interested in reducing the impact of fraud on the eCommerce industry at their booth F10.