Stopping spammers and scammers
When Wanelo first found Sift, they were looking for a solution to combat spammers. With a small and agile fraud team, they were able to move off of hard-coded rules with Sift in order to quickly disable the fraudulent users polluting the social space they were creating. But as Wanelo’s capabilities moved from pure social site to marketplace, they needed a solution to the payments fraud they were experiencing.
With the transformation to e-commerce platform and arrival of in-app transactions, Wanelo at first attempted to catch malicious users with manual review and basic rules. The payments fraud showed up in the form of disputes, wherein both friendly and scammy customers demanded “charge not authorized” chargebacks. Nearly 70% of their chargebacks could be attributed to friendly fraud, which provided a unique challenge to address because such customers often look like trusted and valuable users—until they decide that they don’t want to pay. Wanelo’s job then is to convince the bank that the customer is committing chargeback fraud. As more fraudsters attempted bad activity and Wanelo’s chargeback rate crept up to 0.87%—including friendly fraud—Courtney Fahrer, Marketplace Operations Manager, turned to the system that had worked so effectively for the social side of the company.