James Allen is an online diamond retailer, specializing in engagement rings and loose diamonds.
To establish a smooth buying process while addressing fraud prevention needs, James Allen has retained the services of Forter. The threat of fraud can create delays by necessitating manual reviews and identity confirmation, which, in turn, slow down order confirmation and fulfillment. Yet having robust fraud prevention protocols is necessary to luxury retailers who stand to lose much in the event that they are successfully defrauded of valuable goods.
According to Forter, large retailers reported that losses to fraud, as a percentage of revenue, rose by an alarming 64% in the space of a year, from 0.85% in 2014 to 1.39% in 2015. On the other hand, being overly cautious in fraud prevention can slow down the sales process, frustrating and insulting legitimate customers, and lead to high rates of false positives, in which genuine buyers are rejected. Forter notes that approximately 24% of declined transactions turn out to be false positives.
Forter has established a completely automated solution to address both the need for strong fraud prevention and a seamless transaction. Its system reviews purchases in real-time to ensure that customers are not inconvenienced by anti-fraud measures, or even aware that such measures have been implemented.
Rather than err on the side of caution and reject false positives, Forter’s anti-fraud system aims to accurately identify fraud, protecting e-retailers’ bottom lines. James Allen, for instance, saw sales increase by 1.5% to reach a 99% sales conversion rate. False positives, on the other hand, dropped 21%. James Allen also saw a 15% chargeback improvement upon implementing Forter’s system.
To stymie the efforts of potential fraudsters, Forter leverages cyber-intelligence, behavioral analytics and elastic identity, which are underpinned by machine learning. The system is continually refined and updated by human experience, research, and expertise on the latest sophisticated fraud techniques.
The result is a frictionless buying process, free of delays, that keeps customer satisfaction high, while preventing fraud.