SANTA CLARA, Calif.--(EON: Enhanced Online News)--Signifyd today announced the launch of the first e-commerce fraud platform that seeks to dramatically reduce a retailer’s exposure to chargebacks and fraud by analyzing data footprints to bridge the gap between online and offline consumer identities.
“We’ve done this while simultaneously keeping chargebacks very low and reducing manual reviews by 80 percent. Signifyd has been a terrific ally in growing our business.”
Signifyd’s machine learning algorithms use customer intelligence to evaluate the risks of an incoming order in real time. The company’s technology assesses 120 risk indicators and looks for footprints in online and offline data sources, such as the Social Graph, device fingerprints, IP geo-location, proxy detection, customer history, issuing bank data, cross-merchant blacklists, transaction velocity, search engines and public records to determine the validity of a transaction. For example, if a consumer is making a purchase from an IP address located in San Francisco but the consumer’s billing address is in France, existing fraud solutions will decline or manually review this transaction. Signifyd looks to see which country the card was issued and the strength of the consumer’s social profile. If the consumer’s Twitter account indicates they live around San Francisco and the issuing card bank was in France, Signifyd may approve this transaction. Signifyd assigns all transactions a score to notify retailers of fraud, and is the only top fraud vendor to guarantee payments in the case of chargebacks resulting from approved transactions.
E-commerce is estimated to be about $1.5 trillion in 2013. Merchants are estimated to lose 1 percent of revenue in fraud and lose an additional 3 percent annually in wrongly declined transactions. That means merchants are not only affected by losses, but are also losing billions in good revenue due to existing fraud solutions.
“E-commerce fraud detection has been one of the most critical and time consuming processes for online retailers, but most fraud detection tools aren’t suited for today’s cybercriminal who is becoming increasingly adept and advanced,” said Rajesh Ramanand, co-founder and CEO of Signifyd. “We’re bringing much needed innovation to the fraud solution market. By using Signifyd, retailers can now make decisions in real time about the validity of a customer without worrying about a fraudulent transaction costing them money or a valid transaction being declined.”
For smaller retailers, e-commerce fraud is especially taxing, so much so that 57 percent of smaller merchants still do not screen for fraudulent transactions, despite SMBs losing millions annually in chargebacks and being least able to absorb the lost money and customers from inadequate or nonexistent fraud detection strategies.
“With Signifyd, we’ve been able to increase revenue by 15 percent by selling into markets that we were previously cautious about,” said Ahmed Khattak, founder and CEO of GSM Nation, who sells unlocked cell phones online. “We’ve done this while simultaneously keeping chargebacks very low and reducing manual reviews by 80 percent. Signifyd has been a terrific ally in growing our business.”
Integration with Signifyd takes fewer than 5 minutes to perform on partner platforms like Shopify and Magento, and its low price points for SMB retailers makes best-in-class fraud protection available to every online seller immediately. In addition to GSM Nation, Signifyd provides fraud detection and prevention solutions for many of the Fortune 1000 retailers including Build.com, Wayfair.com, Makerbot and Petflow.com. Signifyd was founded in 2011 by former PayPal and FedEx executives Rajesh Ramanand and Michael Liberty, and is funded by one of the largest, most respected VC firms, Andreessen Horowitz. Earlier this year the startup won the prestigious Merchant Risk Council Award for the Best Emerging Technology.
Headquartered in Palo Alto, CA, Signifyd was founded in 2011 by Rajesh Ramanand and Mike Liberty, a team of veteran risk and fraud experts from PayPal, to help online businesses prevent payment fraud. Signifyd’s full-service cloud platform simplifies fraud detection allowing businesses to increase sales while reducing fraud losses. Signifyd is in use by multiple companies on the Fortune 1000 and Internet Retailer Top 500 list. The Company is backed by top tier Venture Capital firms such as Andreessen Horowitz, Data Collective, IA Ventures, QED Investors, Resolute.VC and Tekton Ventures. For more information about Signifyd, please visit http://www.signifyd.com.