Reducing Fraud by over 60% Using Linked-Entity Analysis
Learn how one e-commerce team achieved a 62% reduction in fraud by exposing sophisticated fraud rings using linked-entity analysis.
Leading B2B Fintech Platform
The Challenge
A ‘Top 50 Internet Retailer’ of high-value electronics goods had been losing money to both professional and ‘friendly’ fraud. The professionals were using stolen payment information with delivery to reshippers, mules and unwitting accomplices. The ‘friendly fraudsters were falsely claiming non-delivery of goods and demanding refunds.
The Solution
The professional fraud rings that had been attacking the merchant for years and most commonly had high-value goods shipped to a variety of vacant homes, frequently changing neighborhoods and IPs to circumvent existing detection efforts. The professionals were quickly exposed using ‘linked-entity’ and similar analyses, available in Fraudnet’s real-time enterprise detection and analytics platform.
The ‘friendly’ fraud problem was addressed by referencing global purchasing patterns and reviewing or cancelling transactions from those purchasers with histories of excessive policy abuses, chronic chargebacks and other negative behaviors.
90-Day Performance
Within the first 90 days, the merchant’s fraud was reduced by 62%, their manual review rates decreased by over 18%, and sales increased by 1% due to a reduction in false declines.
Looking Forward: Continuous Innovation
Linked Entity Analysis is just one of many tools you can use to:
90-Day Performance
Within the first 90 days, the merchant’s fraud was reduced by 62%, their manual review rates decreased by over 18%, and sales increased by 1% due to a reduction in false declines.
1%
Sales Increase due to lower false positives
18%
Reduction in Manual Review Rate
62%
Reduction of Merchant's Fraud Rate
Looking Forward: Continuous Innovation
Linked Entity Analysis is just one of many tools you can use to: