Riskified - Detailed Review
E-Commerce Tools
Riskified - Product Overview
Riskified Overview
Riskified is a leading eCommerce fraud prevention tool that plays a crucial role in safeguarding online transactions and enhancing the overall shopping experience for businesses and their customers.
Primary Function
Riskified’s primary function is to prevent online fraud and reduce chargebacks for eCommerce businesses. It achieves this by reviewing, approving, and guaranteeing orders in real-time, using advanced machine learning algorithms and big data analytics to assess the risk level of each transaction.
Target Audience
Riskified’s target audience includes eCommerce businesses of all sizes, from small boutiques to large multinational corporations. The company caters to a diverse range of industries, including retail, travel, and digital goods providers. Its services are particularly attractive to online retailers looking to protect their transactions, improve approval rates, and enhance the customer experience.
Key Features
Real-time Fraud Detection
Riskified can detect fraudulent transactions in real-time, allowing businesses to take immediate action to prevent losses. This is made possible through advanced machine learning algorithms that continuously learn and adapt to new fraud patterns.
Chargeback Protection
Riskified offers a chargeback guarantee for fraud cases on every approval. In the event of a chargeback, the company helps businesses dispute fraudulent claims and recover lost revenue.
Frictionless Review Process
The platform provides a quick and frictionless review process, making it easy for retailers to increase their sales and expand to new markets without the hassle of manual reviews.
Behavioral Biometrics and Device Fingerprinting
Riskified uses behavioral biometrics and device fingerprinting to verify the identity of customers and detect suspicious behavior, ensuring that legitimate customers are not falsely declined.
Customizable Rules Engine
The platform offers a customizable rules engine that allows businesses to tailor their fraud prevention strategies according to their specific needs and risk tolerance.
Global Reach
Riskified’s services are available globally, with a significant focus on North America and Europe, making it a versatile solution for businesses operating in various regions.
By leveraging these features, Riskified helps eCommerce businesses increase their approval rates, reduce chargebacks, and ultimately boost their revenue, all while providing a secure and seamless shopping experience for their customers.
Riskified - User Interface and Experience
User Interface of Riskified
The user interface of Riskified, an AI-driven ecommerce fraud prevention platform, is designed with a focus on ease of use and providing a seamless user experience.
Ease of Use
Riskified’s platform is described as user-friendly and easy to navigate. The interface is cloud-based, making it accessible and manageable for businesses of various sizes. The account creation process, while requiring business-related information such as company name, size, and industry, is straightforward and sets up the account quickly once the necessary details are provided.
Real-Time Visibility and Control
The platform features Control Center dashboards that offer real-time visibility into performance metrics. These dashboards provide easy access to the data powering the platform, helping teams to better comprehend shopper behavior, fraud trends, and payments issues. This real-time visibility enables fraud analysts and call center agents to interact more effectively with customers and even override model decisions if necessary.
Customized Tools and Insights
Riskified provides tools and dashboards that empower teams to manage fraud and customer interactions more effectively. The platform generates insights that help teams understand and respond to fraud patterns and customer behaviors. For instance, the Decision Optimizer ensures the best decisions are made within the required response time, and dedicated risk analysts monitor performance 24/7 to adjust thresholds as needed.
User-Friendly Features
Key features such as real-time order screening for fraud, guaranteed fraud chargeback protection, and tools like Chargeback Guarantee, Policy Protect, Dispute Resolve, Account Secure, and PSD2 Optimize are all designed to be intuitive. These features help prevent fraud, stop abuse, fight chargebacks, block account takeovers, and reduce friction, all while improving the overall customer experience.
Continuous Improvement
The platform is continuously improved by hundreds of researchers, developers, and data scientists who work to enhance its performance. This ensures that the models become more accurate over time, with every new data point and every new merchant joining the network contributing to better decision-making.
Overall, Riskified’s user interface is structured to be intuitive, providing clear and actionable insights that help businesses manage fraud effectively while enhancing the customer experience.
Riskified - Key Features and Functionality
Riskified Overview
Riskified, a leading provider of eCommerce fraud prevention solutions, integrates advanced AI and machine learning (ML) technologies to offer several key features that enhance transaction security and customer experience.
Real-Time Decisioning
Riskified’s automated decisioning engine makes real-time decisions by assessing hundreds of relevant data attributes. This engine leverages “Smart Linking” to draw insights from over a billion historical transactions executed on their Merchant Network. This allows for the accurate identification of legitimate transactions and the rejection of fraudulent ones in real time, ensuring eCommerce revenues and safeguarding against financial loss and reputational damage.
Machine Learning Features
The platform uses machine learning to evaluate transactions based on a wide range of data points. This includes analyzing user behavior, transaction patterns, and other relevant factors to determine the legitimacy of each transaction. This approach helps in reducing false declines and minimizing the risk of fraud.
Decision Optimizer
Riskified’s Decision Optimizer ensures that the best decision is generated within the required response time. This optimizer is crucial for maintaining the speed and accuracy needed to provide a frictionless customer experience while protecting against fraud.
Performance Control and Anomaly Detection
Unsupervised AI continuously monitors traffic across the network, detecting anomalies and flagging suspected fraud rings. Dedicated risk analysts are also on hand 24/7 to adjust thresholds and protect each merchant’s unique interests. This proactive approach helps in quickly responding to emerging threats and trends.
Chargeback Guarantee
Riskified offers a Chargeback Guarantee, which means they take on the liability for chargebacks. This guarantee ensures that merchants are protected from financial losses due to fraudulent transactions. The only cost to the merchant is a fixed fee, which is often offset by the increased revenue from reduced fraud and false declines.
Integration with eCommerce Platforms
Riskified’s solutions are integrated with various major eCommerce platforms such as commercetools, SAP Commerce Cloud, Salesforce Commerce Cloud, Adobe/Magento, Shopify, and VTEX. This integration allows merchants to access Riskified’s fraud prevention tools directly through these platforms, enhancing their ability to combat fraud without disrupting the customer experience.
Explainable Machine Learning
Riskified provides context for every decision made by their models, using tools and dashboards that empower merchant teams to better manage fraud and customer interactions. This transparency helps merchants understand why certain transactions were approved or rejected, allowing for more informed decision-making.
Real-Time Data Processing and Scalability
Riskified has transitioned to a modern, real-time database platform that enables efficient data processing, high-performance data handling, and cost-effective scaling. This infrastructure allows Riskified to handle peak traffic periods smoothly, ensuring minimal latency and high accuracy in fraud detection. This scalability is crucial for maintaining high standards of service as the business grows.
Conclusion
By integrating these features, Riskified ensures that eCommerce merchants can offer a seamless and secure shopping experience while effectively combating fraud and minimizing financial risks.
Riskified - Performance and Accuracy
Riskified Overview
Riskified, a leading provider of AI-driven fraud prevention and chargeback protection, demonstrates impressive performance and accuracy in the e-commerce tools category. Here are some key points highlighting its strengths and areas where it stands out:
Accuracy and Detection
Riskified’s platform boasts a high accuracy rate in detecting and preventing fraud. It can automate the approval or denial of online orders with 99.8% accuracy, leveraging behavioral analysis, proxy detection, elastic linking, and machine learning. The company’s technology analyzes over 480 data attributes and draws on a vast global merchant network, enabling it to detect fraud 2-3 times better than competitors in head-to-head pilots.
Performance Metrics
Riskified’s clients have seen significant improvements in key performance metrics. For instance, the 10 largest businesses on its platform have experienced an 8% increase in revenue due to fewer false declines and a 39% reduction in fraud-related operating expenses. Additionally, merchants have reported a decrease in chargebacks by up to 70% and a reduction in manually reviewed orders by up to 20%.
Scalability and Integration
Riskified’s platform is highly scalable and integrates deeply with merchants’ infrastructure, logging data from front-end e-commerce sites and back-end systems for payments, shipping, and customer relationship management. This integration allows for real-time decisions and precise identity-based insights.
Customer Retention and Growth
The company has a strong track record of customer retention, with a 99 % customer retention rate. This indicates a high level of satisfaction among its clients. Additionally, Riskified has helped its customers increase transaction success rates, with some seeing a 1.5% increase in transaction success.
Limitations and Areas for Improvement
While Riskified’s performance is impressive, there are some areas to consider:
Technical Challenges
Riskified faced technical challenges such as managing a single writer server limit and breaking up a monolithic system into multiple clusters to support more traffic. However, they successfully mitigated these issues by migrating to a more scalable database solution like CockroachDB.
Market-Specific Optimization
The platform’s effectiveness can vary by market and product offering. For example, a merchant might experience higher fraud rates in certain markets, which could require more targeted optimization strategies.
False Declines
Although Riskified reduces false declines significantly, there is always room for improvement. Finding the balance between approving legitimate orders and declining fraudulent ones is critical to avoid losing good customers and revenue.
Conclusion
In summary, Riskified’s AI-driven platform offers high accuracy and performance in fraud detection and prevention, with significant benefits for e-commerce merchants. However, it is important to address market-specific optimization and ongoing technical improvements to maintain and enhance its services.
Riskified - Pricing and Plans
The Pricing Structure of Riskified
Riskified, an AI-driven fraud prevention and chargeback management solution for e-commerce, has a pricing structure based on several key factors and does not follow a traditional tiered plan model. Here are the main points to consider:
Pay-as-You-Go Model
Riskified operates on a pay-as-you-go structure, where merchants are charged a percentage of each transaction. The cost starts at 0.4% per transaction, which can vary based on several variables.
Variables Affecting Pricing
The pricing is influenced by:
- Annual Sales Volume: Pricing levels are generally categorized based on annual sales volumes, such as under $3 million, $3-10 million, $10-100 million, and greater than $100 million.
- Industry Niche: Different industries may have different pricing due to varying risk profiles. For example, luxury goods merchants might pay more than those in the sportswear sector.
- Scalability: As sales increase, the monthly costs will naturally rise due to the percentage-per-order model. However, merchants with high growth potential may be offered reduced percentage fees.
Features and Guarantees
Regardless of the specific pricing, Riskified offers several key features:
- Chargeback Guarantee: Riskified guarantees chargeback protection, meaning merchants are reimbursed for any fraudulent transactions approved by the system.
- Advanced Machine Learning: The system uses machine learning to optimize fraudulent chargeback prevention and detect various types of fraud, including account takeover fraud and policy abuse.
- Integration with E-commerce Platforms: Riskified integrates with platforms like Shopify, Stripe, Magento, and others, making it versatile for different business needs.
- Control Center: Merchants can track performance, analyze fraud and payment trends, and manage chargeback disputes through the Control Center.
No Free Options or Setup Fees
There are no free subscription options available for Riskified. Potential customers can request a demo before committing to the service, but there are no setup fees or monthly commitments.
No Tiered Plans
Unlike some competitors, Riskified does not offer clear, predefined tiers (e.g., Basic, Advanced, Enterprise). Instead, the pricing is highly customizable based on the merchant’s specific needs and sales volume.
In summary, Riskified’s pricing is flexible and based on a percentage of transactions, with costs influenced by sales volume, industry niche, and other factors. It provides comprehensive fraud protection and chargeback guarantees without setup fees or monthly commitments.
Riskified - Integration and Compatibility
Riskified Overview
Riskified, a leading fraud management platform, integrates seamlessly with a variety of major eCommerce platforms to provide advanced fraud prevention and risk management solutions. Here’s a breakdown of their integration and compatibility:
Integration with eCommerce Platforms
Riskified has integrated its fraud prevention solutions with several prominent eCommerce platforms. For instance, they have partnered with commercetools to offer their Chargeback Guarantee solution through commercetools’ Integration Marketplace. This integration allows merchants to combat payment fraud while ensuring a frictionless customer experience.
Similarly, Riskified has integrated with SAP Commerce Cloud, facilitated by EPAM Systems, a digital transformation services company. This integration makes Riskified’s fraud prevention services easily accessible to merchants using SAP Commerce Cloud, reducing the costs and time associated with integration.
In addition to these, Riskified supports other major eCommerce platforms such as Salesforce Commerce Cloud, Adobe Commerce Cloud (Magento), Shopify, and VTEX. These integrations enable merchants to leverage Riskified’s machine learning-driven fraud detection and prevention capabilities across various platforms.
Compatibility and Accessibility
The integrations are designed to be straightforward and cost-effective. For example, the pre-built connector for SAP Commerce Cloud makes it faster and simpler for merchants to integrate Riskified’s solutions, reducing the investment costs associated with integration.
Riskified’s solutions are also available via the commercetools Integration Marketplace, making it easy for merchants to implement the Chargeback Guarantee and other risk management tools without significant technical hurdles.
Technical Compatibility
From a technical standpoint, Riskified ensures compatibility by considering key factors such as database compatibility. For instance, when Riskified migrated from PostgreSQL to CockroachDB to address performance bottlenecks, they prioritized Postgres compatibility to minimize changes to their application. This approach ensured that the transition was smooth and did not disrupt their services.
Global Merchant Network
Riskified’s platform leverages a global network of merchant data, which enhances its ability to identify legitimate transactions and reject fraudulent ones in real time. This global network is a crucial aspect of its compatibility and effectiveness across different regions and platforms.
Conclusion
In summary, Riskified’s integrations are designed to be seamless, cost-effective, and technically compatible with a wide range of eCommerce platforms, ensuring that merchants can protect their revenue and provide a secure, frictionless experience for their customers.
Riskified - Customer Support and Resources
Riskified’s Customer Support Suite
Riskified offers a comprehensive suite of customer support options and additional resources to ensure their eCommerce clients have the tools and assistance they need to manage fraud and optimize their operations effectively.Dedicated Account Management
Riskified provides each client with a dedicated account manager who is highly knowledgeable about both Riskified’s solutions and the client’s specific business needs. This personalized support helps in customizing the platform to fit the client’s requirements, ensuring a smooth integration and ongoing support as the business grows and evolves.Customizable Solutions
Riskified works closely with clients to customize their web app views and workflows. For instance, they can quickly set up custom workflows to meet specific business needs, such as spinning up hundreds of accounts very quickly. This flexibility ensures that the tools are easy to use for the client’s agents and provide a better customer experience during the order screening process.Control Center and Performance Tracking
Riskified’s Control Center allows clients to track performance metrics and analyze fraud and payment trends in real-time. This tool provides context for every decision made by the system, empowering the client’s support and fraud teams with dedicated tools to manage and optimize their processes.Documentation and Chargeback Dispute Support
In the event of a chargeback, Riskified facilitates a seamless process for submitting the required documentation. The platform supports clients in disputing fraudulent claims and recovering lost revenue, backed by Riskified’s chargeback guarantee.Integration with Various Platforms
Riskified is compatible with multiple eCommerce platforms such as Magento Commerce and PrestaShop, as well as payment solutions like PayPal, Stripe, and Deco. This broad compatibility ensures that clients can integrate Riskified’s solutions into their existing infrastructure without significant disruptions.Case Studies and Customer Stories
Riskified provides access to case studies and customer stories, which offer insights into how other businesses have benefited from their services. These resources can help new clients understand the potential impact of Riskified’s solutions on their own operations.Continuous Support and Innovation
Riskified’s team is always looking for innovative ways to improve the process flow for their clients’ agents and to enhance the overall customer experience. This commitment to continuous improvement ensures that clients receive the latest and most effective fraud prevention and risk management strategies.Conclusion
By offering these support options and resources, Riskified ensures that their clients have the necessary tools and assistance to manage fraud effectively, optimize their operations, and drive business growth. Riskified - Pros and Cons
Advantages
Accurate and Instant Decisions
Riskified’s platform uses advanced machine learning algorithms to analyze hundreds of data attributes in real-time, allowing for instant decisions on transactions. This ensures a frictionless shopping experience for customers while effectively detecting and preventing fraudulent transactions.Scalable Pricing Model
Riskified operates on a pay-as-you-go structure, where merchants pay a percentage per transaction, typically starting at 0.4% per transaction. This model allows businesses to scale their operations without worrying about upgrading their payment plans, making it particularly suitable for e-commerce businesses looking to expand quickly.Comprehensive Fraud Protection
The platform offers a holistic fraud prevention strategy, including protection against account takeover attacks, loyalty program exploitation, and sales promotion abuse. It also includes a 100% chargeback guarantee and representment services, which can significantly reduce revenue loss due to fraud.Global Merchant Network
Riskified benefits from a global network of over 15,000 merchants, providing extensive coverage of e-commerce activity and fraud patterns. This network helps in identifying and mitigating fraud more effectively.Real-Time Insights and Control
The platform provides real-time visibility into performance through Control Center dashboards, giving merchants insights into shopper behavior, fraud trends, and payment issues. This allows for better management of customer interactions and fraud prevention strategies.Continuous Improvement
Riskified’s models are continuously improved by hundreds of researchers, developers, and data scientists, ensuring that the platform remains accurate and effective over time. The platform also learns from each new transaction and merchant, making it more accurate with every new data point.Disadvantages
Initial Setup Time
Merchants have reported that Riskified requires more initial setup time to customize compared to other solutions like Forter. This can be a temporary inconvenience but is necessary for the platform to learn the specific needs of the business.Potential False Declines
During the initial period, Riskified’s AI models may flag some genuine transactions as fraudulent while they learn the customer habits of the merchant. However, this issue typically resolves itself as the models become more accurate over time.Cost Variability
The pricing can fluctuate based on the industry niche and the merchant’s sales volume. For example, luxury goods merchants might pay more than those in the sportswear sector. While this can be advantageous for some, it may create uncertainty in budgeting for others.Lack of Tiered Pricing
Riskified’s percentage-per-order model can make total costs harder to predict, especially for businesses with fixed accounting structures. This flexibility can be beneficial for scaling but may not suit all budgeting needs. By weighing these advantages and disadvantages, merchants can make an informed decision about whether Riskified is the right fit for their e-commerce fraud prevention needs. Riskified - Comparison with Competitors
Riskified
Riskified is known for its advanced AI-powered decisioning platform that examines over 480 data attributes per order to detect fraud. Here are some of its key features:- Chargeback Guarantee: Riskified offers a guarantee that helps merchants minimize financial loss and reputational damage by approving legitimate transactions and rejecting fraudulent ones in real-time.
- Integration: Riskified integrates seamlessly with major e-commerce platforms such as commercetools, SAP Commerce Cloud, Salesforce Commerce Cloud, Adobe/Magento, Shopify, and VTEX.
- Data Analysis: It leverages machine learning and a global network of merchant data to detect fraud 2-3 times more effectively than competitors.
- Customization: Riskified provides customizable solutions, including an interactive tool for agents, to ensure a smooth and efficient process for merchants.
Signifyd
Signifyd is another prominent player in e-commerce fraud prevention:- Data Analytics: Signifyd uses data analytics and machine learning to determine the risk of every transaction, providing risk scoring to help differentiate between legitimate and fraudulent customers.
- Pricing: The pricing is customized based on the merchant’s current operating expenses, chargeback losses, and order declines.
- Security Benefits: It offers various security benefits suitable for e-commerce stores of different sizes, making it a viable option for a wide range of merchants.
Fingerprint
Fingerprint is a device intelligence platform that focuses on precise user identification:- Device Fingerprinting: It uses superior fingerprinting technology to assign a stable visitor ID to users, helping to identify and prevent malicious activities such as account takeovers (ATOs), gift card and coupon abuse, and card-not-present (CNP) fraud.
- Machine Learning: Fingerprint combines device fingerprinting with machine learning, risk assessment, and smart signals to provide industry-leading accuracy.
- Pricing: Fingerprint offers two payment plans: Pro Plus ($99 per month) and an Enterprise plan that requires a custom quote.
Ravelin
Ravelin is known for its comprehensive approach to fraud prevention:- Behavioral Analytics: Ravelin uses device fingerprinting, behavioral analytics, and machine learning to assign each transaction a risk score and send real-time alerts to merchants.
- Customizable Risk Thresholds: It allows merchants to set customizable risk thresholds to efficiently prevent fraudulent activities while maintaining a smooth user experience.
- Pricing: Ravelin’s pricing varies based on the volume of transactions and specific custom requests.
Arkose Labs
Arkose Labs focuses on adaptive authentication and global threat intelligence:- Interactive Challenges: It uses interactive tests to challenge users during authentication, making it difficult for automated bots to gain access.
- Machine Learning: Arkose Labs combines these challenges with machine learning and global threat intelligence to improve security and prevent automated bot attacks.
- Pricing: The pricing is available only upon request.
Unique Features of Riskified
- Extensive Data Attributes: Riskified examines over 480 data attributes per order, which is significantly more than many competitors, allowing for highly accurate fraud detection.
- Chargeback Guarantee: This feature is particularly appealing as it guarantees e-commerce revenue and safeguards against financial loss and reputational damage.
Potential Alternatives
- If you prioritize device fingerprinting and precise user identification, Fingerprint might be a better fit.
- For merchants looking for a solution that provides risk scoring and is suitable for stores of various sizes, Signifyd could be an alternative.
- Ravelin is a good option if you need customizable risk thresholds and real-time alerts.
- Arkose Labs is ideal for those focusing on adaptive authentication and preventing automated bot attacks.
Riskified - Frequently Asked Questions
Frequently Asked Questions about Riskified
What is Riskified and what services does it offer?
Riskified is a leading provider of AI-powered fraud and risk intelligence solutions for ecommerce businesses. It offers a range of services including fraud prevention, chargeback protection, and dispute resolution. Riskified helps merchants approve legitimate transactions, reject fraudulent ones, and manage chargebacks effectively.How does Riskified’s fraud prevention system work?
Riskified’s system uses machine learning and a global network of merchant data to make accurate ‘approve’ or ‘decline’ decisions on card-not-present orders in real time. It collects and analyzes vast amounts of data, including device data, behavioral insights, and information from social media and third-party databases. The platform also employs unsupervised AI to detect anomalies and flag suspected fraud rings.What is the Chargeback Guarantee offered by Riskified?
Riskified’s Chargeback Guarantee ensures that merchants are protected against financial loss due to fraud. If a transaction approved by Riskified results in a chargeback, Riskified reimburses the merchant for the full amount. This shifts the liability for fraud from the merchant to Riskified, providing a significant financial safeguard.How does Riskified improve approval rates for merchants?
Riskified’s technology is built to drive ecommerce sales by approving orders that might otherwise be declined due to overly cautious fraud prevention measures. By leveraging advanced machine learning and a vast global merchant network, Riskified can accurately identify legitimate customers and approve their transactions, thereby increasing approval rates by 4-8 percentage points.Can Riskified integrate with existing ecommerce platforms?
Yes, Riskified integrates with several major ecommerce platforms, including SAP Commerce Cloud, Salesforce Commerce Cloud, Adobe/Magento, Shopify, VTEX, and commercetools. This integration allows merchants to seamlessly implement Riskified’s fraud prevention and chargeback guarantee solutions without disrupting their existing operations.How does Riskified handle emerging fraud threats?
Riskified uses unsupervised AI to monitor traffic across its network, detecting anomalies and flagging suspected fraud rings. The platform also leverages insights from a global merchant network and real-world examples of fraud patterns to adapt and fortify its defenses against evolving threats. Experts, including former fraudsters, contribute to identifying and predicting new fraud behaviors.What kind of data does Riskified use to make decisions?
Riskified collects and analyzes granular and comprehensive data, including device data, behavioral insights, and information about all chargebacks incurred. The platform also uses data from its storefront Beacon, social media networks, and third-party databases to make accurate decisions. This data is continuously fed back into the models to improve their accuracy over time.How does Riskified help merchants reduce operational costs?
By automating fraud detection and chargeback management, Riskified helps merchants reduce the number of manually reviewed orders and lower operational costs. For example, merchants have reported a 20% decrease in manually reviewed orders after partnering with Riskified. Additionally, the platform provides real-time visibility and insights, allowing merchants to focus more on increasing sales and less on managing fraud.Can merchants override Riskified’s decisions if necessary?
Yes, Riskified provides tools and dashboards that allow fraud analysts and call center agents to override the platform’s decisions if necessary. This ensures that merchants have control over customer interactions and can make adjustments based on specific business needs or customer feedback.What kind of support and performance monitoring does Riskified offer?
Riskified offers 24/7 performance monitoring by dedicated risk analysts who adjust thresholds to protect each merchant’s unique interests. The platform also provides real-time visibility through Control Center dashboards, giving merchants insights into shopper behavior, fraud trends, and payments issues. This continuous monitoring and adjustment help in maintaining high performance and accuracy.How does Riskified ensure the accuracy and reliability of its models?
Riskified ensures the accuracy of its models by using cleaned and verified data to train them. The platform employs deep learning technologies and proprietary models to identify false declines and continuously improve model performance. With every new order analyzed and every new merchant joining the network, the models become more accurate.