Riskified and Deloitte Partner to Offer Anti-Fraud Insights

Riskified has teamed with Deloitte to give eCommerce merchants better insight into their anti-fraud measures.

The partnership between Riskified and consulting/auditing firm Deloitte is designed to give merchants a better idea of how they compare to competitors in terms of chargebacks, approval rates and fraud costs.

“This benchmarking service is an industry first, helping retailers formulate a scorecard that can uncover new opportunities to reduce operational costs, lower chargeback and fraud losses, and boost revenues by minimizing false declines,” the companies said in a Thursday (April 13) news release.

According to the release, the offering combines Riskified’s eCommerce, fraud and identity intelligence expertise with Deloitte’s experience in payment and fraud advisory to help merchants in a range of industries — including fashion, travel, luxury and ticketing — improve their payment and fraud capabilities.

Consumers value businesses that take these threats seriously, and shun those that don’t. A PYMNTS study last year found that nearly 25% of shoppers would likely end their relationship with merchants over stolen data.

“It keeps me up at night. That’s why I’m in business,” Riskified Vice President Marina Moraes said in an interview with PYMNTS. “If customers don’t believe that you’re safeguarding their data, they’re going to shop elsewhere. What’s been really interesting to me is that shoppers are actually nervous about the risk of fraud.”

An in-house Riskified study found that half of the retailers they interviewed believed their anti-fraud measures are effective, versus a significantly lower number of consumers (34%) who felt the same way.

“This gap is huge,” Moraes told PYMNTS, adding that losing the trust of one consumer actually means the loss of several consumers without the merchant realizing. She noted, “we found also that 65% of consumers would stop buying at a store where their data was compromised, and 30% of those would tell their family and friends to do the same.”

PYMNTS also looked at the issue of false declines earlier this week in a conversation with Elizabeth Graham, product manager at Entersekt.

As she explained, false declines happen when a legitimate customer makes a purchase, but the transaction is ultimately denied. Graham said the issues could lie on the issuer or the merchant sides of the commerce equation.

She said false declines carry gigantic risks for banks and merchants, where consumer loyalty is vital. Merchants and issuers are losing money through the false declines, as a result — more money than they would have lost to potential fraud.

“False declines are such a problem in the industry that 80% of merchants use this measure as a key metric within the organization,” Graham told PYMNTS.