Victory Against Fraud: The Modway Furniture Story

Cs icon1 17bd70a292692d7140c1de71f885b33527906c6c96b27f40012bdc3fd9df5130

98.5% approval rate on orders with different billing and shipping addresses

Cs icon2 fa37ced9eec41738736c8c4706428a9e1fd7e50167b16c136eb455dd9a819453

97% Decrease in chargeback losses

Cs icon3 74f3757e32121aaa10ccf5fda4c1cdf91f3c725caf31a01e2329e5058fa87bfc

$0 Investment in fraud prevention staff

Cs modway company 40d1c0e51eeb82b95f5d02de784b1714c96f1ec868a0db451635b6ba5bd3ac14

The Company

Modway Furniture is a major distributor of nearly every type of furniture, with an emphasis on contemporary and eclectic collections. Their eCommerce presence,, is a major component of the success of the brand. Given their reliance on web sales, payment certainty is an obvious priority. For years, Modway had no need for additional anti-fraud measures as their instances of less-than-legitimate credit card charges were initially immaterial. It didn’t take long, however, for experienced online credit card scammers to identify exploitation opportunities, which they aggressively pursued.

First Attempt: Manual Review

As a first line of defense against the new attackers, Modway began setting specific flagging parameters. If an order met certain specifications (volume, type, billing/shipping differences, etc.), a team would manually review the transaction and attempt to validate it before shipping. If verification was impossible, the order would not ship. Modway quickly realized, though, that this approach was inefficient at best and harmful at worst. Most of the transactions within these cursory parameters were legitimate, and valuable resources were being wasted on time-intensive and often insufficient research methods. Additionally, while this stemmed the increase in chargeback losses, they were still occurring regularly.

Implementing NoFraud

Modway initially met NoFraud at IRCE (Internet Retailer Conference and Exhibition), at a time when there seemed to be no need for additional security protocol. Moshe Melamed, COO of Modway Furniture found the NoFraud concept intriguing, but as his company at the time was less affected by fraudulent activity, he saw no need for implementation. Unfortunately, 6 months after the IRCE show, Modway soon fell victim to the scourge of all online retailers, and starting experiencing a leap in chargeback rates. What once only happened very occasionally, was now pulling material revenue away 5 to 6 times per month.

As there was now a clear and pressing need for third-party anti-fraud protection, Modway quickly teamed up with NoFraud to address the problems facing the furniture retailer.

After a seamless integration, NoFraud quickly began screening and effectively validating every single order. Chargeback rates plummeted to 2-3 per year and Modway no longer has to expend any effort on fraud prevention.

The Results

Since beginning to use NoFraud, Modway Furniture has:

Cs wine chateau results2 5b35970e1c7b728966ed8a1d89c2d7ff42187ec05f99d5cd4134180175047434

97% decrease in chargeback losses

Cs wine chateau results1 84be8150bf01b16ac4657833d7194bcb5042ed1283cf29ccacb9964adf6f437c

$0 investment in fraud prevention staff

Cs wine chateau results4 235f7b38af2a5e5d909deff3cd315b5d9d7d92eaa9159e934fd838f324710a44

98% approval rate on orders with different billing and shipping addresses

Cs wine chateau results3 96aaf1668144bb59fa16b713c87aaaa4eb9007934875af9e21b8c79ad2c05bb0

0 order backlogs due to manual review

"In the search for a fraud vendor, what I found most appealing was that the NoFraud technology was very sophisticated, yet they did not rely exclusively on technology. The NoFraud Review state is so helpful in keeping my order approval rate up. In my industry, it is common for shoppers to ship furniture to an address other their billing address due to moves or vacation homes. NoFraud has approved over 98% of orders in that category, some of them only validated after a very detailed review from their analyst team. Most of the orders that the NoFraud review team approved would have not shipped out due to suspicions of fraud.”

Cs modway author 155f9ef39bf50799b25a556b25df10a37df7e61095ecd6dc09babbb39e87cccb

Moshe Melamed CEO, Modway Furniture

The Nofraud Difference

As the team at Modway pointed out, NoFraud utilizes a highly technological approach, but doesn’t rely exclusively on automated systems to the point of weakness. In especially tangled cases, the NoFraud analyst team uses a number of professional verification tools to improve approval rates and weed out offenders.

Ready to fortify your online presence? Get in touch with us here