Magento Fraud Protection by Riskified
In this post, we explain how Riskified’s Magento fraud protection extension allows merchants to accurately detect and preven fraud while maintaining a streamlined shopping experience.
Balancing the needs to provide a great experience for shoppers, prevent fraud, and maximize sales revenue is one of the biggest challenges online merchants face when managing card-not-present (CNP) fraud. In this post, we explain how Riskified’s Magento fraud protection extension allows merchants to meet all of these needs – accurately detecting and preventing fraud while maintaining a streamlined shopping experience, and ensuring legitimate customers aren’t wrongly turned away due to suspected fraud.
A Holistic Approach to Fraud Protection
Riskified takes a unique, holistic approach to fraud protection. Firstly, our machine learning models consider every order as a whole, striving to understand the potential ‘good story’ behind the order rather than considering each data point separately and searching for mismatches or statistically risky indicators. Secondly, Riskified considers the entire order flow process – and is mindful of the fact that fraud prevention is just one stage in the flow of online sales. We believe fraud operations should never negatively impact the customer experience and should fit in smoothly with the existing order flow.
Ensuring Fraud Review Doesn’t Ruin The User Experience
While everyone wants to avoid costly chargebacks, consumer expectations about their online shopping experience do not always allow for in-depth manual review. Automating the fraud review process is the obvious answer, but the question remains – where in the order flow should this automated fraud review take place in order to minimize its impact on consumers’ experience?
It may seem that the most of efficient use of time would be to conduct fraud review during checkout. Indeed, some fraud prevention systems review orders for fraud during checkout, simultaneously with the request for authorization from the payment gateway. This way, once checkout is complete – all that remains is fulfillment.
“We were almost certainly rejecting too many good orders… I would say Riskified changed our lives”
But the potential downside of this approach is serious. To avoid customer drop off during checkout, this stage must be as instantaneous as possible. Every fraction of a second added to the checkout process negatively impacts user experience and thus revenue. Unfortunately, an instant is not always enough time to make the most accurate fraud detection decision, even in fully automated systems. At the end of day, the result is false declines – valid transactions placed by good customers are falsely identified as fraud because there is insufficient time to collect and analyze additional information. In other words, automatic fraud review during checkout most definitely results in lost sales revenue from falsely declined transactions, and in insulted customers.
To solve this problem, Riskified evaluates orders after checkout has been completed but before they are sent to fulfillment. For merchants using Riskified’s Magento fraud protection extension, the entire fraud review process occurs on the back-end, after the customer’s role in the transaction is over. The vast majority of orders are approved or declined within a split second. However, where going a little bit more in-depth might make the difference between accepting or declining an order, Riskified can do so without impacting consumers. For example, when necessary, the system can spend a few extra seconds to run certain orders through multiple risk models, making a final decision based on all the available data and factors. The result for merchants is fewer false positive declines.
Streamlining the Post-Checkout Process
In addition to ensuring Magento eCommerce merchants provide a smooth user experience and never turn away good customers due to fear of fraud, Riskified gives merchants the power to fully automate the post-checkout order flow.
We designed two features specifically for the purpose of helping merchants relying on our fraud protection extension to streamline the post-checkout process. The first level feature allows the status of an order within your Magento account to be automatically updated based on Riskified’s approval or decline decision. The second level feature makes it possible to automatically capture funds for orders approved by Riskified. This has allowed Riskified merchants such as Kirna Zibete, Gaffos, and Stubbs & Wootton to configure their systems so that once Riskified makes a decision to approve or decline, the order automatically moves on to fulfillment or cancellation.
“Riskified enables us to concentrate on building our brand and providing great customer service. Not only has Riskified eliminated the order verification process, but they also guarantee the results!”
Quick, Simple Integration
Riskified’s fraud protection extension was designed in the same developer-friendly spirit that guided Magento to build an open-source platform. Developers working to integrate the Riskified extension with a Magento store can easily read all lines of code in our extension and find it on GitHub. We also provide Magento developers with a step-by-step integration guide to answer any questions that may arise during the deployment process. This helps ensure that deploying Riskified’s Magento fraud protection extension is straightforward and that even large stores that have been using Magento for years can install and use our fraud solution.
Riskified is honored to be a Magento Silver Industry Partner. We take pride in recognition from Magento merchants, and update our extension on a weekly basis to continuously improve the experience for merchants and consumers alike.