Aurus Bring Real-Time Fraud Detection to Its Merchants Through a Riskified Partnership

Fraud-management platform Riskified Ltd. is partnering with Aurus Inc., a payments-platform provider. The deal will enable merchants relying on the Aurus platform to know in real time across multiple sales channels whether to accept or reject an order, which in turn can potentially increase approval rates and reduce fraud costs, the parties say.

In addition, Aurus’s merchants will be protected by Riskified’s chargeback guarantee, which the company says protects merchants from paying for fraud on orders approved by Riskified.

“Enterprise merchants relying on the Aurus payments platform can see their sales increase and costs lower when they go live with Riskified,” Kevin Sprake, vice president of global partnerships for Riskified, says by email. “Our platform can increase merchant-sales approval rates by, in some cases, more than 20%, and it can reduce fraud costs for merchants, in some cases, by more than 60%.”

Riskified’s automated risk-based decisioning solution uses transaction data gathered from merchants in network. The data is fed into Riskified’s machine-learning platform to determine the legitimacy of an order. In comparison, traditional fraud-scoring solutions rate the riskiness of the order on a scale of 1-10, but leave the final decision whether to approve or decline the transaction up to merchants, which is turn can make them responsible for fraud liability.

“Many merchants are also still using outdated, rule-based fraud-prevention systems that lead to falsely declined transactions and lost revenue,” says Sprake. “A recent Forrester Consulting study commissioned by Riskified found that a composite organization using Riskified improved transaction-approval rates between 4% and 8%, accounting for $57.2 million in revenue over three years.”

In addition, a recent Forrester TEI study found that a composite Riskified customer using the solution generated $71.3 million in total benefits, including savings of $13.1 million in chargeback costs over a three-year period.

“In a world where fraud practices are changing and evolving, Riskified’s chargeback guarantee takes the burden off the merchants and allows them to sell with confidence,” claims Sprake.