A Big Blind Spot in Return Fraud

Before Yofi, Everlane knew something was going on with return fraud and abuse, but only in bits and pieces. There was no holistic way to see the full scope of the problem.

Jim Green, Director of Operations & Logistics describes it plainly:

The team would sometimes stumble onto issues only when something looked “off” in other systems. For example, a surprising charge on the UPS return account or with one investigation uncovering a $4,000 return that never made it back to the warehouse, discovered only because a high shipping charge prompted a manual review.

Here are the key pain points Everlane experienced before Yofi.

No Quantified View of Return Fraud

Before Yofi, the team didn’t have a clear, quantified view of return fraud. They were mostly operating on anecdotal signals and one-off investigations when something looked “off.” That made it hard to understand the true size of the problem or track progress over time.

Limited Fraud Visibility Across Orders and Time

Fraud signals were siloed, with very limited visibility across orders and customer activity over time. There wasn’t an easy way to connect related entities or spot patterns that pointed to repeat offenders. As a result, the team often treated incidents as isolated cases instead of part of a broader trend.

Refunds Processed Before Issues Were Caught

In many cases, refunds were issued before problems were discovered, especially in FTID cases, where a tracking number can appear legitimate at first glance. By the time the team realized the return never arrived (or was otherwise abusive), the money was already gone, putting them in a reactive position.

Growing Frustration and a Sense of Being Taken Advantage Of

Over time, the lack of visibility and control created real frustration internally. Operational teams felt the burden of chasing down issues, and leadership felt the financial and brand impact without a clear path to address it. As Jim put it, return fraud was a “blind spot.”

From “We Think Something’s Happening” to Full Control

1. Blocking $30,000+ in FTID Return Fraud Each Month

With Yofi in place, Everlane can flag suspicious return behavior in real time and prevent fraudulent refunds before they’re issued. As the team puts it,“Yofi flags suspicious return behaviors as they occur, which allows us to block that refund before it occurs and block that customer from ordering again.”

This shifted Everlane from reactive to proactive:

• Fraudulent refunds can be stopped before money leaves the business.
• Repeat offenders can be prevented from placing more orders.
• Teams don’t need to wait for a charge or complaint to trigger an investigation.

Yofi prevents $30,000-$40,000 in FTID returns per month and that’s just one type of return fraud.

2. A Clear View of the Problem (And a Story to Tell Internally)

For a large portion of his tenure, Jim didn’t know how deep the problem went. With Yofi, he now has a clear, data-backed view of what is actually happening. He explains, “It’s not necessarily the dollar number that will save a company on its own … but it’s every few dollars in this climate, and it’s a psychological win as much as anything.”

Now the team can:

• Quantify the fraud that’s being caught.
• Share concrete numbers and examples with executive leadership.
• Turn anecdotal “we think we’re being hit” into data-backed insight.

Leadership doesn’t just see loss prevention, they see the company fighting back.

3. Consortium Insights and Connected Identities

“We didn’t know the extent of return fraud before we started this. It’s been really unexpected to see how much we’re catching. The consortium piece is really helpful because it allows us to see when a very similar email or related entity pops up again,” Dahlia shares. Many of these connected entities were tied to repeat FTID behavior, allowing Everlane to stop fraud earlier instead of rediscovering the same abuse patterns again and again.

Yofi’s consortium and linkage logic help Everlane:

• Spot related entities (emails, addresses, patterns) that connect seemingly separate returns.
• Understand patterns over time, not just one-off incidents.
• Get early warning when someone who hit another merchant pops up in Everlane’s ecosystem.

4. Psychological Wins and Team Morale

Beyond the spreadsheets and dashboards, there’s a very human win. Jim puts it simply:
“It sucks to feel like you’re getting taken advantage of.”

Yofi gives Everlane a way to push back, and they’ve noticed the impact goes beyond the numbers.

• There’s a real morale boost in stopping repeat offenders, so customer conversations don’t have to start from suspicion or the assumption that someone’s trying to game the system.
• Sharing wins with leadership creates visible excitement and momentum.
• There’s a sense of control and agency that simply wasn’t there before.

Operational Challenges Before NoFraud

As Brew approached its 11th year in business, the company experienced a significant spike in sales — a trend that Jonathan was excited to see: “We’ve noticed a huge spike in sales, which is fantastic. So you’re a net positive.” But with that growth came a steep increase in fraudulent activity.

1. Rising Fraud and More Sophisticated Attackers

Jonathan shares that while Brew had always dealt with some level of fraud, the post-COVID era brought a wave of far more sophisticated attempts. “With that, the increase of fraudulent orders has also increased. And not just the increase in fraudulent orders, but how clever these alleged customers have become.”

These evolving fraud patterns created challenges including:

• Undermining profitability through high-risk orders and attempted theft
• Potential reseller fraud due to the popularity and resale value of Brew’s limited releases
• Chargeback exposure, especially from international orders
• Operational inefficiency driven by an exhausting manual review process

Pressure on customer experience, since, as Jonathan notes, “You can’t just simply reach out to a customer and accuse them of being fraudulent and you can’t simply just cancel an order without communicating.”

2. Manual Review Became Unsustainable

Before adopting a fraud solution, Brew managed fraud detection entirely in-house. Jonathan describes it as a constant “chess game” with increasingly clever fraudsters:

“At that time, we were simply manually checking, manually reaching out. The people are clever. And so this chess game of back and forth wasn’t working.”

Not only did this consume hours of the team’s time each week — it also risked harming the seamless customer experience Brew is known for. The company needed a way to stop fraud without slowing down legitimate customers or adding friction to the buying journey.

Results That Scale

“At the end of the day, as a brand owner and as a company, we want to spend that time wisely on growing the company, increasing sales, and making sure that customer experience stays seamless,” says Jonathan.

With NoFraud, Brew Watches transformed a growing fraud challenge into a strategic advantage. The brand now enjoys:

• Higher revenue
• Fewer chargebacks
• A fully automated fraud workflow
• More time to focus on product innovation and customer delight

Most importantly, Brew preserved the seamless, human-centered customer experience that has defined the brand since day one.

3.1% Revenue Lift Through Smarter Approvals

With NoFraud passing more legitimate orders that were previously at risk of being declined or manually canceled, Brew was able to approve more orders from loyal customers. NoFraud’s precise decisioning ensures that real customers experience smooth, uninterrupted checkouts, even during peak sales seasons.

77% Reduction in Chargebacks

Brew now has proactive fraud blocking that prevents high-risk orders from ever becoming chargebacks. With NoFraud proactively detecting and blocking fraudulent transactions, chargebacks have dropped by 77%, creating immediate savings and long-term operational relief.

100+ Hours Saved per Year

By eliminating manual review and the “chess game” Jonathan described, Brew recovers over 100 hours of operational time annually. That time is now reinvested into:

• Designing new watch collections
• Improving customer experience
• Growing sales and brand reach

Operational Challenges Before NoFraud

Before partnering with NoFraud, Monday Swimwear faced a growing list of operational inefficiencies that drained time and resources from its operations and customer support team.

1. Manual Chargeback Management

As Ahna recalls: “It was just me and one customer service representative trying to figure everything out. When a chargeback came in, we had to research what it even meant, how the process worked, and how to respond. There was so much Googling and guesswork.”

Without a dedicated fraud solution, the team manually gathered evidence, contacted banks, and tracked cases individually — often without understanding the nuances of each issuer’s process. This reactive approach left them exposed to financial losses and consumed valuable hours each week that they couldn’t afford to lose.

2. Returns Abuse, Unauthorized Resellers, and More: Evolving Threats and Limited Visibility

Fraudulent orders and returns abuse quickly became a recurring issue. The team found themselves investigating suspicious claims, manually reviewing transactions, and even chasing down fraudulent customers on social media. “We’d see customers wearing the swimsuits they claimed they never received,” Ahna shared. “But how do you even approach that conversation? It was frustrating and time-consuming.” 

As Monday Swimwear expanded, the lack of an automated fraud prevention system became an operational bottleneck, slowing fulfillment and adding unnecessary friction to the customer experience.

The rise of gift card fraud, returns abuse, and other sophisticated schemes introduced new challenges that were nearly impossible for a small team to keep up with. Without centralized reporting or analytics, Ahna’s team lacked visibility into fraud trends and couldn’t easily identify repeat offenders. “Every new fraud trend felt like a new fire drill. We were constantly reacting instead of preventing.”

A Multi-Year Commitment Driven by Measurable Results

Since partnering with NoFraud, Monday Swimwear has achieved measurable gains in efficiency and revenue protection. The impact was so significant that Monday Swimwear’s success with NoFraud led them to sign a multi-year renewal, solidifying NoFraud as a long-term operational partner.

This commitment underscores the brand’s trust in NoFraud’s ability to adapt in real time to new fraud tactics, keeping their business protected as threats evolve.

3.6% Revenue Lift Through Smarter Approvals

By confidently approving more legitimate transactions that might have previously been flagged or declined, Monday Swimwear unlocked new revenue opportunities without adding risk. NoFraud’s precise decisioning ensured that real customers experienced smooth, uninterrupted checkouts, even during peak sales seasons.

92% Reduction in Chargebacks

With NoFraud proactively detecting and blocking fraudulent transactions, chargebacks have dropped by 92%, creating immediate savings and long-term operational relief. The chargeback management service has not only reduced losses but also provided actionable insights to strengthen internal policies and improve prevention strategies.

224+ Hours Saved per Year

With NoFraud handling reviews and chargebacks, Ahna and her small team have reclaimed significant time each year that was previously spent chasing fraud evidence or responding to disputes. “It’s completely revolutionized how we spend our time,” Ahna said. “We’re no longer hunting down fake claims or trying to understand every bank’s system. We can finally focus on creating great products and serving our customers.”

Challenges

As Magic Mind expanded, they faced critical challenges that not only hindered their ability to scale but also threatened their ability to build trust with customers and protect their brand equity. High fraud exposure, manual processes, and ineffective subscription management became major blockers. Without the right systems in place, they risked losing revenue and damaging customer relationships. Here are the three key challenges they had to overcome in order to continue their upward momentum.

1. False declines. False declines were a major issue. All medium- and high-risk orders were automatically declined, causing legitimate customers to be rejected due to overly conservative fraud protection measures. This led to missed revenue opportunities, customer dissatisfaction, and an increase in customer acquisition costs (CAC).
2. High fraud exposure. While Magic Mind had a below average chargeback rate of 0.30% for their industry, it was still an unnecessary drain on resources that hindered their growth trajectory. Additionally, orders that required manual review became a time-consuming process that increased operational costs. The company needed a more accurate fraud prevention solution that could keep bad actors from continuously taking advantage. 
3. Subscription management complexity. With multiple products and cross-selling opportunities, managing complex subscription logic became increasingly difficult. Magic Mind needed an efficient system to personalize customer experiences, automate promotions, and optimize churn prevention strategies.

Impact

By optimizing fraud prevention with NoFraud, and streamlining subscription management with Skio, Magic Mind has achieved significant improvements in operational efficiency and revenue retention. Here’s a look at the tangible impact and how they continue to drive Magic Mind’s success today.

Reduced False Declines: 1.07% More Revenue

NoFraud’s advanced fraud prevention platform has helped Magic Mind boost its order approval rate to 99.5% — a 1.07% increase from its prior solution. By using real-time, AI-driven fraud detection, NoFraud has been able to accurately differentiate between fraudulent and legitimate orders, drastically reducing false declines. This has ensured that more legitimate transactions have been approved, directly increasing Magic Mind’s revenue. Additionally, NoFraud’s comprehensive fraud protection has minimized the risk of chargebacks, protecting Magic Mind’s bottom line while delivering a seamless customer experience and maximizing order throughput.

$0 Lost to Fraudulent Chargebacks

Thanks to NoFraud’s comprehensive chargeback management and chargeback protection guarantee, Magic Mind has lost $0 to fraudulent chargebacks. NoFraud’s team fully manages the chargeback process, taking over disputes and reducing the administrative burden. By automating fraud detection and chargeback management, NoFraud has minimized financial risks and operational costs, freeing up Magic Mind to focus on strategic growth. With complete protection against fraud-related losses, the company has been able to confidently scale its business, building trust with customers through smoother, more secure transactions.

Reduced Operational Costs: Gaining 200 Hours Back Per Quarter 

NoFraud’s powerful AI enables quick and accurate decisions, drastically reducing the need for internal manual review. When flagged transactions require further attention, NoFraud’s team of fraud analysts handle the manual reviews, removing that burden from Magic Mind. Additionally, NoFraud has taken on the task of fighting chargebacks on their behalf. By offloading these repetitive fraud-related tasks, Magic Mind has been able to reclaim valuable time — 200 hours per quarter — and redirect resources toward growth and customer engagement.

Enhanced Subscription Experience

Skio’s powerful automation tools allow Magic Mind to engage more effectively with customers by offering personalized promotions, discounts, and upsells at key moments in the subscription lifecycle. With Skio’s one-click upsell features, Magic Mind is able to easily introduce new offerings like their sleep product to existing subscribers, driving higher conversions without adding complexity. Skio’s native Shopify integration has enabled Magic Mind to manage complex subscription models — such as product swaps, bundled offerings, and flexible billing cycles — with minimal friction. Additionally, features like customer self-management and seamless pause/resume options have improved the overall user experience, resulting in increased customer satisfaction and retention. This level of customization and automation has helped Magic Mind to scale efficiently while maintaining a highly tailored subscription experience for each customer.

By partnering with Skio and NoFraud, Magic Mind has been able to grow their subscription and retail operations by safeguarding against fraud and ensuring smooth customer experiences. These platforms empower the brand to grow faster, retain more revenue, and continue delivering on their promise of providing clean, sustainable energy solutions.

In 2018, True Classic Founder Ryan Bartlett had the idea for the company’s first t-shirt, setting out on a mission to help the everyday guy look good and feel good in a t-shirt that finally fit right at an accessible price. The following year, Nick Ventura and Matt Winnick joined as cofounders and the team launched their first crew neck t-shirts in six colors. Within two years, the bootstrapped company hit its first $100 million mark. By 2022, True Classic had become a global brand — selling in 192 countries — with an expanded product line that included activewear, men’s bottoms, and more.

The company prides itself on being stewards of their community with an emphasis on giving back and consistently showing up for humans when they need them most. Whether it’s sending supplies to cities after natural disasters, replacing people’s wardrobes after their house burned down, helping teachers get supplies for their students, or putting clothing on the backs of the homeless, True Classic is here to help and wield their resources for good.

“Our goal with this company has always revolved around over-indexing on the value we give our customers and communities. Value can come in the form of best-in-class customer service, entertaining ads that make you laugh, products that are intentionally designed to help you look better and donating shirts at scale to help communities in need,” says Ryan Bartlett, True Classic Cofounder and CEO.

NoFraud Helps Capture $140,000 More in Monthly Revenue

“We didn’t realize how much money we were leaving on the table until we used NoFraud,” says Breanna. The NoFraud team showed True Classic the difference between Shopify’s Fraud Tool and what they could achieve with NoFraud. True Classic’s previous approach was limited by technology that required overly rigid rules and processes that unnecessarily created friction in their customer experience — which blocked good customers from completing orders, causing the company to miss out on well-deserved earnings. 

This was a familiar challenge that the NoFraud research team had seen across merchants. The team’s analysis found that 23.8% of all orders classified as “high-risk” by Shopify and 84.4% deemed “medium-risk”, were actually safe to ship and received a pass by NoFraud. NoFraud Protection delivers highly accurate pass or fail decisions by using a combination of powerful technology and analytics, diversified data sources, and expert human review. With NoFraud, ecommerce merchants pass more good orders with a high level of confidence as all transactions passed by the NoFraud decision engine are backed by our chargeback guarantee.

After switching to NoFraud, True Classic was able to unblock their pipeline with a seamless solution that removed friction and made it easy for good shoppers to complete their purchases. With the improved pass/fail decision accuracy, the company safely increased their order approval rate by 5%, which helped them capture an additional $140,000 in monthly revenue.