Fraud Prevention Platform Riskified Files For IPO

Fraud management platform Riskified has filed for an initial public offering (IPO), according to a press release.

The company intends to list its shares on the New York Stock Exchange under the symbol “RSKD,” the release stated.

Riskified was reported to be considering going public in May. The company has filed as many fraudsters are continually changing their tactics in order to keep taking advantage of the chaos of the online boom caused by the pandemic.

Bad actors have largely done away with the “spray and pray” methods of dozens or hundreds of smaller transactions and are instead favoring more targeted transactions aimed at larger and more focused targets.

Consumers have noticed, PYMNTS reported, with surveys showing that if they were to be victims of even one data breach, that would be enough to dissuade 65 percent of them from ever doing business with the merchant in question.

And 48 percent of them said they are more concerned with eCommerce fraud now than they were prior to the pandemic.

Last year saw a glut of new fraud attempts, with online merchants of the eBay or Amazon stripe seeing around 344 fraud attempts every month. That represented a boost of 24 percent from 2019.

Those numbers are coupled with fraud prevention being less effective, as reports stated there had been just over 34 percent of attacks done away with, as opposed to the 56 percent from the prior year.

Fraud is almost a constant in the world of finance-based companies. A PYMNTS report found that every dollar of fraud now costs U.S. retailers a total of $2.94 in lost merchandise and other expenses.

Much of the extra costs come from newer tech apps that companies have to put in place to prevent being targeted more than once.