98.5% approval rate on orders with different billing and shipping addresses
97% Decrease in chargeback losses
$0 Investment in fraud prevention staff
Modway Furniture is a major distributor of nearly every type of furniture, with an emphasis on contemporary and eclectic collections. Their eCommerce presence, modway.com, 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.
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.
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.
Since beginning to use NoFraud, Modway Furniture has:
97% decrease in chargeback losses
$0 investment in fraud prevention staff
98% approval rate on orders with different billing and shipping addresses
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.”
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.
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