Exploiting the app for fraud
DoorDash had to contend with fraudsters that were using stolen credit cards and reselling DoorDash as a service illegally. They would advertise online through various platforms, claiming to be selling DoorDash at a significant discount and convincing consumers to make purchases through them. Consumers would provide their order details to the fraudster, who would then place the order using the stolen credit card, and the consumer would wire money to the fraudster. This left DoorDash in a position of having to reimburse the victim (either directly or via chargeback) whose credit card was stolen after the victim disputed the charge.
DoorDash was also experiencing chargebacks due to the charges on those stolen credit cards, and their rules-based fraud prevention needed to be regularly updated to stave them off, consuming time and resources.
In these early days of DoorDash, no automation was in place and most fraud prevention was done via manual review. DoorDash needed a solution that could proactively detect and prevent these fraudsters before they could make it onto the platform to do damage.