05 Mar My Review of Riskified
With most shopping being done online these days, it has become essential, as an e-commerce business, to have some method in place to protect your customers’ data from hacking and protect your business from fraudulent purchases.
One of the most popular ways to protect user and business data is fraud detection software, which can be installed and automated to alert you when fraudulent transactions have taken place. And one of the most popular fraud detection companies is Riskified.
But does this fraud detection software live up to the hype?
Here is my honest review of Riskified.
There are definitely plenty of reasons why Riskified is used by so many large online retailers.
A few of them include:
- 100% chargeback guarantee
- Machine-learning system makes everything easier
- The “big picture” it offers with an overview of the important info where you need it
- Easy to look up emails to see why they were flagged
- You can see if a certain account has been declined before to see patterns
Unfortunately, there are just a few things that Riskified could be doing better.
- No mobile SDKs (important since so many shoppers shop from mobile devices)
- Sometimes the explanation for why an order was flagged is unclear
- No free trial (which is pretty typical for this sort of service, to be fair)
In a Nutshell
Overall, I think there is a good reason why Riskified is such a popular option.
The best thing about Riskified is that it combats inaccurate eCommerce fraud flags that cost your business valuable customers. With their 100% chargeback guarantee, you know that you won’t lose profits to false flags.
The software itself is easy to use and understand. You can quickly get an overview of what transactions got flagged and why and see the analytics of how your business has done over time. If certain accounts have already been flagged on other sites, you can easily see that as well.
The biggest drawback here is the lack of mobile SDKs. Since so many online shoppers are making purchases from their phones, it seems like a significant oversight. API integration could also be improved greatly.
Though they do flag significantly fewer good transactions than other fraud detection software, with Riskified sometimes it’s unclear why some accounts are flagged.
What is Riskified?
Founded in 2012 by Eido Gal and Assaf Feldman, Riskified is a software as a service (SaaS) company. Their primary focus is providing companies with fraud and chargeback prevention solutions.
Riskified’s technology uses behavioral analysis, elastic linking, proxy detection, and machine learning to detect and prevent fraud. In addition, Riskified backs approved transactions with a chargeback with a 100% money-back guarantee.
How Does Riskified Work?
In essence, Riskified uses machine learning to identify potentially fraudulent transactions from taking place on an eCommerce platform, keeping both online businesses and their customers’ data safe and preventing companies from losing money to scams.
Though other companies offering similar services are able to effectively protect against fraudulent transactions, Riskified sets itself apart by allowing more legitimate transactions. The software itself is able to quickly separate good transactions from bad ones, providing users with a 100% chargeback guarantee.
The machine learning aspect of the software allows it to constantly update and improve itself, allowing for more automation and requiring less labor from the companies using it.
Who Uses Riskified?
Riskified is used by eCommerce companies of all kinds, though they frequent the following industries:
- Apparel and accessories
- Outdoors and athletics
Some of their biggest clients include:
- Finish Line
- Gym Shark
- Steve Madden
…and many more.
Riskified is a bit mysterious when it comes to pricing.
With some companies, you can see different levels of service with price points listed. With this company, it’s not that easy.
Things like the size of your company, how many transactions you do a day, and what level of protection and features you need are factored into the total monthly cost of Riskified’s services.
To find out just how much it will cost to use Riskified for your company, you will have to reach out to them directly.
Overall, their prices do seem to start at $3,000 per month.
If Riskified is out of your price range or if you’re looking at other options, you’ll be happy to know that there are a few fraud detection software companies out there that offer similar services.
Some of the popular alternatives to Riskified are:
Frequently Asked Questions
Is Riskified a Fintech company?
Yes, Riskified is a Fintech company.
Who founded Riskified?
Eido Gal and Assaf Feldman created Riskified in 2013.
Who are Riskified competitors?
Riskified has a number of competitors that have market share in the fraud detection space. Some of the biggest competitors include Singifyd, SEON, Sift, Ravelin, and Kount.
Does Riskified use AI?
Yes, Riskified uses a form of AI referred to as machine learning.
When did Riskified go public?
Riskified went public on July 28, 2021, when they launched their public IPO offering on the NYSE. This initial offering valued the company at $4.3 billion.
What is fraud detection software?
Fraud detection software is used to protect eCommerce businesses from fraudulent activity.
What is a chargeback?
A chargeback is the amount of money refunded to the customer after they dispute the purchase or return their product/service.