Rooster Teeth Case Study

Rooster Teeth is kicking fraud out of the coop.

0

Fraud liability

24hr

Monthly manual review eliminated

$40k

Annual increase in approved orders

The Company

A global fan-based entertainment company, Rooster Teeth is widely popular for its hit shows and innovative community-built media environment. With gaming, streaming, broadcast, live-action production capabilities and a world class animation studio, Rooster Teeth has come a long way from its humble spare bedroom beginnings. With series such as Red vs. Blue, RWBY, Rooster Teeth Podcast, The Roost, gaming partnerships, and a lifestyle brand, the company has amassed an impressive 45 million subscribers to its YouTube Network, 5 million unique weekly viewers across its RoosterTeeth.com hub and more than 4 million registered community members.

The Fraud Problem

Rooster Teeth’s popular shows, gaming, and streaming services attract many adolescent and young adult fans. Many in this age group are not yet financially stable and fraud among this demographic is common. Rooster Teeth found that a small slice of their target demographic would attempt to use stolen credentials to create subscriptions or buy fan gear. While global fraudsters employ more sophisticated methods such as using prepaid cards or untraceable burner phones to make unauthorized merchandise purchases, one common category of fraudsters they encountered simply used their parents’ and friends’ cards without authorization. Rooster Teeth also encountered classic fraud that sellers of streetwear, lifestyle and pop culture categories encounter, the use of stolen cards to acquire merchandise with a high resale value on campuses, overseas, or via third party websites.

The First Attempt

Murphy Geshwind, Customer Service Subject Matter Expert (CS SME) at Rooster Teeth, was tasked with rooting out the fraudsters from the legitimate customers. Murphy’s vast experience in customer service and technical support departments made them the best candidate for the job. 

Using the available built-in Shopify fraud prevention tools, Murphy would do frequent daily sweeps of incoming orders, researching those marked as “Medium” or “High Risk.” They found that most orders that were flagged as “Medium Risk” were classified that way due to a harmless typo or customer oversight. The “High Risk” orders often proved to be actual fraud, although there were many instances where legitimate orders were classified as “High Risk,” requiring Murphy to review every transaction to prevent false declines. 

Murphy would spend hours manually reviewing orders every week. They described the fraud problem as a daily chore and an ever growing challenge as the company scaled and criminals became more tenacious and creative. Weekends and late night hours were “a hope and a prayer” as fraudsters often took advantage of the lack of scrutiny during those time slots and the company’s reputation for expeditious processing and shipping schedules. Fraudulent orders sent to the warehouse were nearly impossible to retrieve and cancel, forcing the company to absorb the losses of fraudulent orders that failed to be caught in time.

The company’s entire fraud defenses rested solely in the hands of Geshwind, and on the rare occasion that they were unavailable, a manager would fill in. The fraud related tasks, which included hours of manual review, as well as responding to customer-initiated chargebacks was increasingly infringing on their primary responsibilities at Rooster Teeth.

Integrating With NoFraud

In Q1 2021, fraudulent attempts spiked as fraudsters became more familiar with the ideal time frames to place orders that would be shipped out before manual review was performed. It was not uncommon for Murphy to detect hundreds of orders being sent to mail forwarding warehouses in Florida. Stolen merchandise was popping up on third party marketplaces in Panama and Cuba at significantly higher prices, damaging the brand. As fraud losses reached over $2K+ a month, Murphy urged the eCommerce team to implement a fully automated fraud prevention solution. 

The eCommerce team began their search for a fraud prevention vendor in the Shopify app store. They immediately discounted any solution that was rules-based. Their ideal fraud provider needed to be fully automated, requiring no effort from the Rooster Teeth team to maintain. Another major consideration was accuracy. They wanted a solution that effectively blocked fraud, but not at the expense of rejecting legitimate customers.

Combing through reviews on the Shopify app store, the Rooster Teeth team zeroed in on NoFraud as the provider that was most likely to suit their needs. While most providers offered a large degree of automation, what was especially appealing about NoFraud was the existence of a manual review team, which NoFraud customers loved and contributed to their high approval rate. The review team is available by phone or email so if there is a question on a decision, NoFraud customers are provided with live support.

The NoFraud Difference

After a 30 minute integration and NoFraud setup, NoFraud’s impact on Rooster Teeth was immediate. The solution instantly screened Rooster Teeth orders and only legitimate orders were pushed to fulfillment. The company was also able to remove a fraud filter blocking orders with mismatched billing addresses, enabling Rooster Teeth to ship out an additional $40,000 worth of product annually. Murphy has been entirely alleviated of the entire responsibility of reviewing suspicious orders and managing chargeback disputes. With the robust NoFraud system in place, chargeback rates have plunged, and when the occasional fraud chargeback does occur, NoFraud will automatically dispute the chargeback and reimburse Rooster Teeth for the full chargeback value.

“The peace of mind that NoFraud has afforded us is invaluable. I no longer need to stay up until 2AM anticipating fraud in every new order. Everything is completely automated and so effective at identifying the intention in every scenario. We have had zero issues with this system. The NoFraud team is a pleasure to work with, they have been amazing at explaining the solution and process, and have proved to be fully vested in our success.”

Murphy Geshwind

Book NoFraud Demo Today

See Our Accurate Real-Time Fraud Screening for eCommerce in Action

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.”

Ready to learn more?

Book a demo and see our accurate real-time fraud screening for eCommerce in action.

Ready to learn more?

Book a demo and see our accurate real-time fraud screening for eCommerce in action.