Kogan continues to drive strong business results through its partnership with Riskified, enhancing fraud prevention and customer experience. With the Kogan Riskified partnership, the ecommerce retailer achieved approval rates of over 98%. The partnership with Kogan Riskified also led to some $1.5 million in annual savings from lower fraud and policy abuse while approving more legitimate customer transactions.
Riskified, the global leader in ecommerce fraud prevention and risk intelligence, today announced the results of its partnership with Kogan.com, one of Australia and New Zealand’s leading ecommerce businesses. The partnership has enhanced transaction approval capabilities and provided greater insight into customer behavior throughout the online shopping journey.
Founded in Melbourne in 2006, Kogan.com has over 3.5 million customers in Australia and New Zealand. Its stable of big brands includes Kogan.com, Dick Smith, Mighty Ape, Matt Blatt and Brosa. The company also provides services in the areas of mobile, internet, energy, insurance, finance and travel.
Kogan is an online only retailer, therefore all Kogan transactions are card-not-present. Therefore, fraud prevention is a continuous operational focus. But the company also had to make sure that real shoppers could complete purchases without their transactions being declined unnecessarily due to false positives in fraud detection.
In addition to payment fraud, Kogan was having more and more problems with policy abuse. Serial policy abuse, misuse of promotional offers and subscription chargebacks impacted business margins. Further, manual chargeback management added to operational work flows without improving the outcome of disputes.
“We wanted a solution that could truly perform, without impacting customer experience,” said Rohan Dhaygude, Deputy CFO at Kogan.com.
AI-driven fraud prevention delivers measurable business results
Kogan chose Riskified because of its Chargeback Guarantee model, AI-powered fraud decisioning and advanced identity intelligence capabilities. The two organizations together enhanced fraud prevention and increased transaction approval coverage.
Kogan enhanced its understanding of repeat policy abuse, promotional abuse and customer profitability with Riskified’s Identity Engine and Identity Explore solutions. Better device intelligence and behavioral analytics also helped in improving fraud detection across customer transactions.
Kogan’s transaction data was constantly being analyzed by the company’s machine learning models. The result was that the platform optimized approval decisions for higher-value purchases and first time shoppers. Meanwhile, Riskified enabled Kogan to approve more legitimate customer transactions with confidence, while restricting exposure to fraud.
Riskified also paired its Chargeback Guarantee with automated dispute management. This allowed Kogan to reduce manual workloads, improve chargeback outcomes and maintain chargeback levels below thresholds set by AusPayNet.
This partnership delivered several measurable business benefits, including:
- High risk and high value transactions with approval rates greater than 98%.
- $1.5M annual savings through improved detection of serial policy abuse and promotional misuse.
- Reduced operational complexity by eliminating manual transaction review and chargeback processing.
Partnership to Drive Long-Term Ecommerce Growth
Enhanced confidence in authorizing valid customer transactions, resulting in higher revenue capture and greater customer satisfaction.
“Riskified stands behind its decisions, creating a strong alignment of incentives and giving us confidence to approve more legitimate orders while reducing fraud exposure,” said Rohan Dhaygude.
“What stood out with Kogan is how fast they moved from just flagging risk to actually understanding their customers’ intent,” said Aviram Ganor, GM EMEA & APAC at Riskified. “That’s what lets them say yes to more good orders instead of playing it safe, ultimately creating a superior experience for Kogan customers.”
Today, Kogan continues to expand its fraud prevention strategy without adding operational complexity. Furthermore, the company remains well-prepared for peak shopping periods, including Black Friday and the holiday season. The partnership enables Kogan to make faster and more confident transaction decisions while protecting revenue and maintaining a seamless ecommerce experience for customers.
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News Source: Businesswire.com
