Persistent fraud patterns, faulty manual review, and limited rules-based solutions
Like many e-commerce businesses, Paula’s Choice experienced fraud patterns on their platform that resulted in an influx of chargebacks. They were also faced with a reselling issue—fraudsters were ordering products in bulk at a discount and then shipped them to other countries to resell through eBay or Amazon for profit.
To combat this influx of fraud, Paula’s Choice initially kept a spreadsheet and manually blocked suspicious orders from a single source of truth—but soon discovered how challenging it was to manage and stay accurate. The Client Services team saw the need for an unbiased system that could take human error out of the equation, and turned to Sift as a solution.
However, when Paula’s Choice adopted a new payment processor, they switched from Sift Payment Protection to the payment processor’s revenue protection product, which was offered for free. Paula’s Choice quickly discovered the limitations of the rules-based product and was immediately inundated with fraud. Within the first 11 days of using the competitor’s product, Paula’s Choice received hundreds of chargebacks—6x their normal volume. This surge of fraud left their warehouse and Client Services team overwhelmed and under-resourced.