Latest news with #JeffOtto
Business Insider
09-07-2025
- Business
- Business Insider
A fraud detection firm used AI to help TickPick crack down on ticket scams — and reclaim $3 million in approved orders
Riskified is a software company based in New York City that provides fraud management, risk intelligence, transaction reversal support, and prevention technology to online merchants. Its clients include Mastercard, Shopify, and TickPick. TickPick is an online marketplace where users can buy and sell tickets for concerts, sports games, and other live events. The company is also based in New York City. Situation analysis Traditionally, fraud-prevention systems have relied on binary yes-or-no decisions to conclude whether a transaction is real. The goal is to approve authentic orders and decline fraudulent ones. But Jeff Otto, Riskified's chief marketing officer, told Business Insider that this system has limitations and is often too rigid to keep up with the evolving fraud landscape. "Sometimes these old yes-no answers get it right, and it's fraud," Otto said. But sometimes the system gets it wrong, and legitimate orders are falsely declined, he added. Otto said that when transactions are falsely declined, it can be frustrating for customers. Each time it happens, companies lose the sale, which can cost them millions of dollars a year. False declines can also tarnish their service reputation when customers don't return, or they review their poor experiences. In an effort to move away from the traditional fraud-detection model, Riskified launched Adaptive Checkout, an artificial intelligence -powered tool that analyzes orders in real time. While the tool formally launched in March 2025, some of Riskified's clients tested the product beforehand. TickPick, for instance, began using the tool in the testing phase in November 2024 to reduce its fraud risk and improve false decline rates. The company often deals with "very large-priced tickets," such as $20,000 Super Bowl passes, Otto said. "They've got to get that order right, but they also have to be very careful because somebody that's buying a $20,000 ticket is not someone you want to upset — and you want that customer back," he said. Otto said Adaptive Checkout is an advancement of the company's existing fraud-detection products, with extra features designed to lower false decline rates, increase merchants' revenue, and reduce fraud. Key staff and partners Riskified's data science team built Adaptive Checkout in-house. Otto said the company also works closely with its clients to help design tools to help them solve their most pressing problems, including accurate transaction approvals and fraud detection. He said he runs a customer advisory board with some of Riskified's largest clients, which meets regularly to discuss trends, new fraud cases, and ways to improve customer service. AI in action Adaptive Checkout uses AI to automatically identify each order's unique risk profile, which includes the customer's shopping history, actual location, billing address, and other data points from the company's network of global merchants. Otto said the AI tool adapts an online merchant's checkout process to the transaction's risk level and then decides whether an order is legitimate or fraudulent and should be approved or denied. Adaptive Checkout's AI helps TickPick make "intelligent decisions" for each purchase, Otto said. Cases of blatant fraud are automatically declined, while safe transactions are approved. For orders that aren't straightforward, such as when there is a problem with the customer's address or payment source, the tool requests additional details. For example, Otto said the AI might ask the customer for their card verification value, the three- or four-digit code on the back of a credit card, or to set up a one-time password. "When we get that back, the order's approved." He added that taking an extra step to verify that a customer is legitimate, especially for a high-value purchase, helps protect both merchants and customers. Did it work, and how did leaders know? TickPick tracked the transactions that were declined due to fraud risk before and after using Adaptive Checkout. Otto said it found that in the first three months of using the tool, TickPick was able to approve as much as $3 million in incremental revenue from orders that it would have previously declined due to fraud risk. Otto said about 50 of Riskified's existing clients are using Adaptive Checkout, and Riskified continues to work closely with its clients to get feedback on new AI features and tools. Otto said the company is working on improving and adding new features to the tool later this year.
Fibre2Fashion
23-06-2025
- Business
- Fibre2Fashion
85% of merchants seek to cut friction without fraud risk: Survey
About 85 per cent of merchants identified their biggest challenge as reducing friction for legitimate customers without increasing fraud risk—highlighting the complexity of balancing automation, manual reviews, and a consistent customer journey, as per a recent survey. Nearly half (47 per cent) of respondents estimate that up to 5 per cent of legitimate customer orders are falsely declined. For the respondents, a 5 per cent false decline rate equates to approximately $50 billion in lost revenue that, with the right fraud management approach, can instead be converted into topline growth, according to the survey conducted by Riskified. About 85 per cent of merchants struggle to reduce friction for good customers without raising fraud risk, a Riskified survey has revealed. With e-commerce sales nearing $8 trillion by 2028, merchants lose up to $448 billion annually to fraud and false declines. Nearly half report 5 per cent of legitimate orders falsely declined, costing $50 billion. Approximately 54 per cent of respondents selected 'initial checkout and/or purchase flow' as the area that offers the greatest opportunity for improvement in fraud prevention, signalling a focus on reducing friction and risk at this critical point in the customer journey. 'Fraud isn't a back-office problem anymore — it's a front-line business decision,' said Jeff Otto, chief marketing officer, Riskified. 'This survey confirms that the most successful companies are those that treat fraud strategy as a key enabler for growth, conversion, and customer trust.' Conducted during Ascend 2025 in North America, the survey captured insights from over 130 professionals across the e-commerce ecosystem, including merchants responsible for approximately $1 trillion in annual online transaction volume. Fibre2Fashion News Desk (RR)
Business Wire
18-06-2025
- Business
- Business Wire
85% of Merchants Battle to Balance Customer Experience and Fraud Prevention
NEW YORK--(BUSINESS WIRE)-- Riskified (NYSE: RSKD), a global leader in ecommerce fraud prevention and risk intelligence, today shared new insights from a live survey conducted at its flagship event, Ascend 2025, at the 1 Hotel Brooklyn Bridge in New York City. The survey results highlight key challenges and opportunities in ecommerce fraud prevention and its strategic role in driving profitable growth and elevating the customer experience. As global ecommerce sales are projected to rise to nearly $8 trillion by 2028 (eMarketer), the sophistication of fraud continues to grow alongside it. Merchants lose as much as $448 billion annually due to payment fraud, false declines, and returns and refund abuse. At Ascend 2025 in North America, Riskified gathered more than 130 professionals from across the ecommerce ecosystem, including merchants representing approximately $1T in annual ecommerce transaction volume. Live polling conducted onsite captured how the ecommerce industry is responding to current challenges: When asked to identify their biggest challenge in optimizing customer experience while preventing fraud, 85% of respondents cited the need to reduce friction for good customers without increasing fraud risk - underscoring the complexity of balancing automation, manual review, and customer journey consistency. Nearly half (47%) of respondents estimate that up to 5% of legitimate customer orders are falsely declined. For the respondents, a 5% false decline rate equates to approximately $50 billion in lost revenue that, with the right fraud management approach, can instead be converted into topline growth. Approximately 54% of respondents selected 'initial checkout and/or purchase flow' as the area that offers the greatest opportunity for improvement in fraud prevention, signaling a focus on reducing friction and risk at this critical point in the customer journey. These results underscore discussions at Ascend 2025, where speakers from Amazon, Macy's, Christian Dior, Rue Gilt Groupe, Appriss Retail, Primer, Ethoca, and others presented cutting-edge strategies combining AI, data science, and cross-functional and cross-industry collaboration to turn fraud prevention into a strategic lever for business growth. To empower merchants to meet escalating challenges head on, Riskified showcased its newest lineup of AI-first tech designed to combat the most sophisticated fraud and policy abuses including Adaptive Checkout, Policy Protect, and Dispute Resolv e. 'Fraud isn't a back-office problem anymore — it's a front-line business decision,' said Jeff Otto, Chief Marketing Officer, Riskified. 'This survey confirms that the most successful companies are those that treat fraud strategy as a key enabler for growth, conversion, and customer trust.' Riskified's Ascend 2025 North America Summit also featured industry roundtables focused on vertical-specific risks including electronics, fashion, remittance, footwear, omnichannel retail, travel, and gift cards — fostering collaboration and practical solutions among peers. For more information on Riskified and Ascend 2025, which is taking place all over the world, visit About Riskified Riskified (NYSE:RSKD) empowers businesses to unleash ecommerce growth by outsmarting risk. Many of the world's biggest brands and publicly traded companies selling online rely on Riskified for guaranteed protection against chargebacks, to fight fraud and policy abuse at scale, and to improve customer retention. Developed and managed by the largest team of ecommerce risk analysts, data scientists, and researchers, Riskified's AI-powered fraud and risk intelligence platform analyzes the individual behind each interaction to provide real-time decisions and robust identity-based insights. Riskified was named to CNBC's World's Top Fintech Companies in 2024. Learn more at
