An enterprise-class fraud platform that analyzes data footprints was launched Wednesday by ecommerce software startup Signifyd. Signifyd’s algorithms assess 120 risk factors and analyze on and offline data in real time, providing what the company claims is a more effective way of mitigating retailer’s risk.
By referring to customer history, device fingerprints, issuing bank data, proxy detection and other sources of information, Signifyd’s new platform is supposed to reduce not only chargebacks, but also blocks on legitimate transactions and manual reviews.
If a customer makes a purchase while vacationing far from home, and they tweet about it, Signifyd said its solution can recognize that the unusual behavior is legitimate.
“Ecommerce 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.”
Merchants are estimated to lose 1 percent of their revenue to fraud, with another 3 percent lost to wrongly declined transactions. With ecommerce revenues estimated to hit $1.5 trillion in 2013, the cost of fraud is enormous.
Signifyd promises fast integration with partner platforms, including Shopify and Magento, and is priced to attract SMB clients, with packages starting at $79 per month. Signifyd claims that 57 percent of SMBs do not screen for fraudulent transactions.
“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.”
While ecommerce is being conducted more and more on mobile devices, consumers are not necessarily protecting the information on those devices adequately, according to a study put out last week by Paypal, which coincidentally is the company Signifyd co-founders Rajesh Ramanand and Mike Liberty formerly worked together at.
Signifyd won the Merchant Risk Council Award for the Best Emerging Technology earlier this year.