NoFraud

G8Only Case Study

G8Only Doubles Revenue and Gets 8,000 Hours Back With NoFraud

Revenue increase

10%

Increase in approvals

8,000hrs

Fraud-related tasks eliminated annually

“Turning NoFraud on was like a magic switch. Poof! All of a sudden our fraud problems disappeared.”

Joe LaBruzza, Founder @ G8Only

Joseph LaBruzza founded three online retail sites that service the aftermarket automotive performance market — G8Only.com, LSXOnly.com, and SSOnly.com. This is the story of G8Only.

How It All Began

In September 2013, Joe LaBruzza brought home a Pontiac G8. As a very short-run production vehicle that was imported under GM but manufactured by its Australian subsidiary, Holden, he quickly realized finding parts specific to his new vehicle was harder than expected.

Joe was looking for a bumper splitter that fit the car well, but realized he needed to take matters into his own hands. With his design background, Joe crafted his own splitter and shared his creation online with the G8 community. Community members took notice and began requesting Joe’s custom splitters for themselves. However, accepting payments online required him to register as a business; and thus, G8Only.com was born.

As Joe dove headfirst into the automotive performance market, he noticed a massive opportunity to become the go-to source for G8 parts — a trusted site for G8 aficionados that would take the guesswork out of finding the right parts. He invested his time and resources into building the site’s inventory, and soon his side passion became his full-time job.

PayPal Fraud Prevention Limitations

“Fraud has always been prevalent in the automotive performance sector,” notes Joe, but it wasn’t until about a year into his new business did he notice it starting to hurt his bottom line. At the time, he used PayPal for all his payment processing needs, but the solution didn’t do enough for fraud detection and deterrence. Joe noticed customers would dispute charges and initiate chargebacks that he would lose in representment. Each chargeback was a big loss for his business because he’d lose out on the parts and the revenue from the transaction, not to mention the added chargeback fees.

In an attempt to reach a resolution, Joe started shipping only to confirmed Paypal addresses, but this didn’t solve the fraud problem. As the business continued to grow, so did fraud. “It’s a numbers game. Say 5% of your transactions are fraudulent; 5% of $100,000 a year doesn’t sound like much, but 5% of $1 million? It just gets worse,” says Joe.

PayPal’s fraud prevention limitations meant the G8Only team needed a better solution to support their rapidly growing business.

A Payment Processor of a Different Color

The G8Only team decided to cut ties with PayPal and try a different payment processor that touted better fraud protection mechanisms. It didn’t work. “We did the math and saw we lost nearly $100,000 to fraud in a single year,” Joe shares. “We were getting hit with massive fraud bills and it really started to take a toll.”

Joe and his team got serious — real serious. They started analyzing transactions and identifying patterns. They flagged fraud hot zones; California was by far the worst, followed by Michigan (specifically Detroit), and some areas in the Southern states. With 40% of California orders coming up fraudulent, G8Only ended up cutting off business with California altogether. Joe put a code on the site to prevent Californians from checking out, which unfortunately was a very hard call because California also provided a lot of legitimate business. Some customers contacted Joe directly, asking how they could still buy from him.

Wanting to deliver and delight his customers, Joe set up a separate, new process for California orders. He started invoicing trusted customers directly, building a waiver into the purchase process that required signature and government identification to authorize each transaction. Joe went one step further to triple-check that customers were who they said they were by running a background check on each order to ensure all the addresses matched. The solution wasn’t sustainable as it added too much friction for both customers and the G8Only team.

Joe’s team spent an average of one hour confirming each order, which added up to about 20 extra hours of work per week. The added steps often lead to days passing between signatures and requests for additional documentation, ultimately leading to shipping delays and a less-than-ideal customer experience. With the amount of time they spent verifying California orders, they ended up losing money on every order.

The Power of Community & Confronting Fraud

“The community we serve is a very niche and tight-knit group of dedicated individuals who know each other,” shares Joe. The passionate group converses and collaborates through online forums and Joe makes himself available to customers and community members alike to talk shop after-hours. So naturally, it felt personal — and was incredibly disheartening — when he learned that even some of the community members were defrauding him.

Joe collaborated with others in the community, who rallied behind him, as he shared fraud cases in an effort to band together and reduce the growing fraud problem. He even contacted a few fraudsters directly to confront them and was amazed by the stories they told to justify their crimes. Joe says many responses were essentially, “Oh, I’m sorry! I thought you were a larger company, so I didn’t feel bad ripping you off.”

Joe’s outreach was successful in a few cases as some fraudsters ended up legitimately paying for the parts they stole, but most cases left the company without parts or payment. Joe attempted to work with local police departments to recoup his losses when he learned the discouraging reality that there was nothing they could do.

In one example, Joe reported a theft — a $1,300 chargeback — for which he provided all the transaction, shipping, and address details proving the crime to authorities. The shocking response from the police was a hard reality to accept. They did not recognize Joe as the victim in this case; instead, it was the unassuming cardholder. Frustrating to say the least, as the cardholder was able to get their money back from the credit card company, the fraudster got $1,300 worth of parts for free, and Joe was left without parts or payment.

“eCommerce fraud is not a victimless crime, but in the eyes of the law, it can seem that way,” says Joe. Even though he had all the transaction details proving the crime, law enforcement referred Joe to the FBI Cyber Division. However, since the fraudulent transactions were under the $10,000 threshold, it wasn’t a priority for the FBI cybercrimes team.

Unfortunately, Joe is really the only victim in this case — and many other merchants suffer the same fate. Time was ticking and the growing fraud problem was going to meet its match real soon.

NoFraud is a Magic Anti-Fraud Switch

At the end of his line, Joe and the G8Only team started diligently searching for an anti-fraud solution. He didn’t realize a solution existed and thought this was something he had to deal with on his own, but a quick Internet search landed him at NoFraud.com. After dealing with fraud for so long, Joe was clear on his list of requirements that he needed in a fraud prevention solution:

Quick Implementation

G8Only’s business was growing rapidly. They couldn’t afford to lose more time solving and managing fraud or chargebacks. They felt confident with NoFraud’s simple implementation process and were up and running the same day without a hitch.

G8Only was able to immediately open up business with California again and other fraud hotspots. They saw near instant results as NoFraud was able to safely pass 60% more orders within their first quarter. The business now sees 25-30% of its total revenue coming from California!

Pro-Active Support Team

G8Only needed a support team that could lend its expert fraud analyses to their high-volume, high-value transactions. Instead of having to manually dig through transactions to identify fraudulent patterns and handle disputes, why not lean on a team that has 10+ years of eCommerce fraud prevention and chargeback management expertise?

NoFraud’s support team has helped G8Only keep more of its hard-earned revenue and gain operational efficiencies. In a single quarter, NoFraud was able to review 2000 transactions for G8Only, saving the company 8,000 hours of manual review per year. Getting back valuable time has been critical to the team’s growth.

So Good it Almost Goes Unnoticed

After dealing with fraud and the accompanying headaches for years, Joe needed a fraud prevention solution that genuinely solved the problem, not a Band-Aid that he would need to come back to redress. In recalling his initial experience with NoFraud, Joe says, “Turning NoFraud on was like a magic switch. Poof! All of a sudden our fraud problems disappeared — that whole ordeal was taken off my plate.” He wondered, “Can it really be that easy?”

The first few transactions that passed through NoFraud, Joe double-checked. He’d get notifications if an order failed with a recommendation to cancel the order and provide a refund. Joe checked the NoFraud system to verify it was working properly. After checking the first few transactions, he realized he didn’t need to anymore. The NoFraud solution worked effectively in the background to pass/fail orders that he used to review manually. In fact, it worked even better — in a single quarter, they passed an extra 10% in orders that G8Only would’ve previously failed. Relieved of this added burden, Joe and his team could reallocate their time to further develop the business.

Pleased with his two years and counting using NoFraud, Joe rarely checks his account these days because he has the utmost confidence in NoFraud’s ability to protect his business. Joe speaks highly of his customer success manager, Lisa Washington, who he works with regularly to ensure NoFraud continues to run smoothly and is customized to address the unique needs of his business. Lisa and the NoFraud team have also been a valuable resource in flagging any fraud trends, allowing the G8Only team to get ahead of any potential threats.

If you’re burnt out from fighting fraud and want to be like Joe, who can grow his business worry-free, contact us to start a free 14-day trial on NoFraud. No more worrying about chargebacks, chargeback codes, and growing fraud schemes!

Book NoFraud Demo Today

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Customer Testimonials

Praise From Some of Our
Successful Customers

dailysale.com
“5 stars across the board! We switched to NoFraud a year ago and not only did my approval rate increase drastically but pricing was also a lot more competitive. The integration is seamless and literally worked out of the box with zero changes to our current workflow.”
marika logo
“NoFraud has been absolutely amazing. Before NoFraud, we were suffering from a barrage of fraud attempts, which resulted in tens of thousands of dollars of chargebacks. Once you install this app, fraudsters will give up hope. I think it’s a no-brainer.”
Wine Chateau Marketplace
“Implementing NoFraud has vastly improved our business operations, not only by significantly reducing chargebacks and false positives, but by turning our inefficient fraud prevention process into a simple pass/fail decision that saves us loads of time and stress.”
nixplay logo
“This is some of the best money we have ever spent. Integrating the app was quick and smooth, the support is fantastic and far superior to the service offered by some of their competitors. Our fraudulent orders have dropped by almost 60% since integrating NoFraud as compared to Signifyd and all orders that are charged-back are quickly reimbursed.”
Designer Optics Logo
“I switched to NoFraud from another guaranteed fraud prevention provider. My approval rate improved, pricing was more competitive, NoFraud customer support is superb and the user interface is intuitive and informative. My only regret is that I did not make the change sooner.”
Hak5 Logo
“Normally not one to write reviews but absolutely must applaud NoFraud. I switched over from a big name competitor that dropped the ball huge on support. I’ve had no such issues with NoFraud — their support agents has been super responsive. The sales folks answered my every detailed question — even digging into API documentation. Their onboarding team was top notch. I was up and running super quick! Very happy.”
JNA logo
“The NoFraud app is really easy to install and set up. NoFraud’s analysis has been much more effective than the standard default Shopify fraud analysis. It catches fraud missed by Shopify and passes orders that Shopify said were high risk. Best part is, you can contact NoFraud and speak with someone.”
PCmag logo
“The team at NoFraud are amazing. They have been a strong partner against the fraudsters. Right before we signed up we were hit with several thousand dollars of Mule Fraud. The addition of this app has definitely saved us money. Worth every penny. I would totally recommend them.”
Judith Leiber logo
“We can’t say enough wonderful things about the team at NoFraud. They are extremely responsive, knowledgeable, and easy to work with. The peace of mind we get from knowing that they are handling the fraud check process is invaluable. NoFraud’s system consistently delivers accurate order ratings and recommendations.”
Kaged logo
“NoFraud has been fantastic. We switched from Signifyd and haven’t looked back. Better rates, vastly simpler customer service, easier touch points for service/help, chargeback protection and filing on our behalf (this was huge — of the few chargebacks we’ve gotten, NoFraud takes care of them and we’re good to go!). Super fast verifications (if/when needed). Great staff. All in all, definitely recommend going with this app!”
UMZU logo
“Excellent communication. Easy to use service. Available to resolve and questions or concerns that arise in a timely manner.”
Monoprice
“NoFraud’s ability to extend internationally is great since we have no experience or knowledge in international sales. Without NoFraud, we’d have to learn everything there is to know about fraud detection in another market.”
“When I did a chargeback audit over the last 5 years before NoFraud, I saw that had I been a NoFraud customer for 10 years, I could’ve bought a boat with all the savings.”
“We didn’t realize how much money we were leaving on the table until we used NoFraud.”
“Turning NoFraud on was like a magic switch. Poof! All of a sudden our fraud problems disappeared.”

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Ready to learn more?

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