What to Do When You're a Target
Fraudsters love expensive goods, because a single successful fraudulent purchase then represents such a significant win for the criminal. They're generally easy to sell on, for a considerable percentage of the original price - which the fraudster, of course, never really paid.
Jomashop is the largest independent online watch retailer, and they send watches and other luxury merchandise worth thousands or tens of thousands of dollars to customers all over the world.
The trouble is, they need to be very sure that the customers they're shipping to are genuine. If they're not, the big win for the criminal means a big loss for Jomashop. And fraudsters, as we said, love expensive goods - so Jomashop is a perfect target.
Finding Fraud - Manually
Once upon a time - meaning up until the beginning of 2014 - Jomashop used to fight fraud manually. Transactions used to go through a manual review process, meaning that a real person sat and looked at the order, and evaluated whether or not it was fraudulent.
Because the stakes were high, the reviewers tended to decide conservatively, turning away many orders that were probably genuine to avoid the one bad apple hidden in the group. And they liked to be very sure before saying 'yes' - even if that meant extensive research, phone calls, and requests for proof of identity.
On one occasion, having received an order from a celebrity, Jomashop managed to record a phone conversation with the individual in order to compare the voice on the phone with recordings of the celebrity's work online. They even persuaded this watch-loving and well-known person to send a particular tweet at a particular time, for added verification!
While techniques like these are impressive in reflecting both the creativity and the dedication of the manual reviewers, there's no doubt that such talents could be put to better use elsewhere. Moreover, because manually reviewing and tracing orders and individuals takes time, it often took as much as 3 days before Jomashop was able to ship the package - a delay that led to high incidences of the dreaded Buyer's Remorse.
High-end merchandise requires high-end customer experience and customer service. There's no doubt that hassling customers for extra verification of identity, and making them wait for their purchase in consequence, detracted from the wonderful experience Jomashop wanted their consumers to have.
Yet they couldn't compromise their fraud prevention process. If anything, they wanted it to be even better. A store that's particularly attractive to fraudsters can't take any chances with fraud: they need to keep up, and if possible keep ahead, of where the criminals are at.
Instant Fraud/No Fraud Decisions
Forter was the answer. 100% automated yes/no decisions for every single transaction means real-time responses for both the retailer and the customer. No more waiting - and no waiting for the package, either, since those 3 days for fulfillment turned into 2 hours.
Genuine customers are no longer even aware that they're being analyzed, because the process is so fast and so invisible. And they're no longer rejected as false positives, either, because Forter's machine learning system means that false positives are reduced to an absolute minimum.
As the cherry on the fraud prevention cake, Forter's money back guarantee translates into zero chargeback costs for Jomashop, because even if the system does let a fraudster slip in from time to time (a risk that is the other half of minimizing false positives as much as possible), Forter takes the hit.
The Added Value
Jomashop are always looking for ways to make sure that their customers have a delightful experience on their website - and if you check out their Instagram page, you'll see numerous photos of happy customers showing off their new treasures.
Automated, real-time fraud prevention helped to make customers happier with their shopping experience overall. Faster checkout, no follow up manual review, and faster shipping all combined to make shopping on Jomashop a pleasure. And there's no more time for Buyer's Remorse!
If you'd like to read more about Jomashop's successes with fraud prevention, check out the article Internet Retailer wrote about the Jomashop/Forter case study presentation given at CNP Expo this week. The IR team were obviously impressed - and we think you will be too.