Fraud management startup Riskified opens Melbourne office

Israeli fraud management startup Riskified has announced the opening of a new office in Melbourne in response to growing demand for its services among Australian retailers.

The company revealed that six of Australia’s top 20 retailers — including JB Hi-Fi and David Jones — are using Riskified’s solutions to safeguard against checkout fraud.

Riskified’s new Country Manager for Australia Nathan Joel said legacy fraud management solutions are unable to keep up with the growing fraud challenges posed by the surge in online shopping in response to COVID-19.

“Due to legacy fraud tools, payment failures and high-friction verification methods, e-commerce merchants lose billions to false declines, chargebacks and cart abandonment. Given our ongoing work with leading global online players we know we can change that,” he said.

“In this age of hyper-fast digital transformation, Australian e-commerce merchants are uniquely positioned to experience exponential growth — if they are willing to innovate and use the latest machine learning solutions.”

He said research suggests that 1.36 million Australians made their first online purchase in 2020. “But we also know this cohort is extremely sensitive to checkout friction.”

For one Australian retailer, Riskified was able to deliver a 6% uplift on their online approval rate compared to legacy fraud tools, Joel said.

Riskified already has offices in Israel, New York, London and Shanghai. The company’s expansion into Australia was supported by the Victorian Government’s investment advocacy agency Invest Victoria.

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