Riskified is an Israeli technology company that specializes in the development and distribution of software as a service, also known as SaaS, for the purpose of preventing chargeback and fraud. The technology behind the software is extremely complex, but it is effective for providing a high-level of cybersecurity for other businesses. This is a massively successful business that has experienced rapid growth in recent years. The company and products that it has to offer are worth finding out about if you conduct online/e-commerce business transactions. Here are 20 things that you probably didn’t know about Riskified.
1. Riskified is only 7 years old
Cybersecurity is becoming more necessary as hackers and other criminals who use online technology. In 2012 Eido Gal and his partner Assaf Feldman developed a system that would help to protect people from becoming the victims of fraud and chargeback activities when selling goods through e-commerce sites. These are two of the most common problems that require the use of advanced software that offers protection for sellers. The company is 7 years old and will enter its eighth year of operation in 2020.
2. The technology is advanced
Riskified uses highly-advanced technology that involves a complex array of technologies and processes. These include proxy detection, elastic linking, behavioral analysis and machine learning for the purpose of detecting and preventing fraud. The Software as a Service technology is trusted by the makers so well that the company provides a 100% money-back guarantee if fraud escapes the elaborate system’s detection and prevention methods and fraud actually does occur.
3. Riskified stays ahead of evolving criminals
Technology is evolving at a rapid pace, but cybercrooks seem to have little trouble keeping up and finding ways around cybersecurity measures. Riskified experts are aware of this fact and they stay a jump ahead of cyber-criminals through machine learning algorithms and proprietary behavioral analytics. The predictive technology features an adaptive approach that keeps the functional protection of the cybersecurity one step ahead of those who attempt to commit fraud.
4. The SaaS enhances customer experience
Riskified designs an e-commerce fraud-prevention technology that turns fraud management into a growth engine for online retailers. Its e-commerce technology offers machine learning algorithm and proprietary behavioral analytics that protects the bottom line and customer experience as well as offers an adaptive approach to stay ahead of the constantly changing fraud landscape, enabling merchants to protect themselves from fraud and offer better customer experience, lowering overhead and maximizing their revenue. Part of the rapid success of Riskified is in its ability to provide an essential service for companies engaging in e-commerce. The risks for fraud are high, particularly with larger companies as hackers and cyber-criminals are becoming far more advanced in their skills for manipulating online systems and for getting around security measures.
5. Riskified is based in Israel and New York
The founders of Riskified established the headquarters for the company in Tel Aviv, Israel. There is also an office that is based out of New York, New York. The founders are natives of the country of Israel but they also conduct business on behalf of the company within the United States. Riskified has a strong representation in both countries.
6. Riskified is also good for business
Companies who sign on with Riskified receive not only fraud prevention services for online retail, but there are other benefits that go along with the SaaS. In addition to chargeback protection, customers also get guaranteed higher approval rates, instant decisions, and economic solutions that boost brand loyalty and drive revenue for retailers.
7. It has several big e-commerce reference customers
Riskified is backed by several respected companies who have stepped forward to vouch for the effectiveness of the product and services offered. These include Stripe, Viagogo, Digital River, Vestiare Collective, Farfetch, Integration, Giftcards.com, Demandware (Salesforce Commerce Cloud), Shopify, Magneto, and API.
8. Riskified will reimburse 100% of any fraudulent chargebacks
Riskified has become a popular choice for many e-commerce businesses because of the fact that it provides them with three services that are guaranteed and backed by the company. These include the guarantee that any fraud-related chargeback transaction is covered for 100% in the event that the system does not adequately detect fraudulent activity. They will reimburse the customer for the full amount of any fraudulent chargebacks that slip through.
9. The software works seamlessly
Implementing new software systems can be a pain when you’re conducting an e-commerce business. Some new programs cause glitches in the existing system or even a loss of time. Riskified’s system works on top of any current fraud systems or processes that are currently in place and the program integrates seamlessly with several e-commerce platforms at once. The system works in a way that is invisible to the end-users so it doesn’t interfere with normal business.
10. Riskified offers customization
The Riskified platform can be controlled by the business that has subscribed to the service. It can handle the entire volume of transactions conducted by a business or just work on certain types of orders. Each subscriber controls the application and how it is applied. This allows customers to consider their needs and to use the program in a way that best meets the company’s business needs.
11. Fees are only charged for services used
The fees that Riskified charges customers are only for the transactions that it reviews, approves and guarantees. A customer is not required to use Riskified for every single transaction. This can result in a tremendous savings for businesses that have a set budget. For example, if an e-commerce business has a certain type of transaction that is at a higher risk for fraudulent chargeback activity, this transaction type can be flagged for analysis by the system.
12. All of Riskified’s systems are developed in-house
One of the most impressive aspects of Riskified and the fraud prevention platform it offers is that the technology is all in-house. It has been developed and perfected by Riskified technicians, developers, and staff. The technology isn’t outsourced from a third-party. This gives customers greater confidence in the services because they are dealing with one entity. Riskified employs highly skilled program and software developers in its team.
13. Riskified works in real-time
Thanks to the advanced technology, it doesn’t matter if there are large volumes of data, or small, the fraud detection and prevention program works in real-time. There are no lags nor delays in the system and it doesn’t let orders go through then try to remedy the situation later. The program makes instant decisions after quickly analyzing the data about each transaction and it happens so quickly that the end-user doesn’t even know that the transaction is being analyzed.
14. Riskified has specialized tools for detecting fraud
We learned that Riskified’s SaaS platform uses specialized detection tools that are referred to as “anomaly” detection. These tools have the capacity to identify organized fraud rings and detect attacks that commonly occur in such cases when an account is taken over. This is an extremely advanced technology that keeps e-commerce businesses using the platform one step ahead of cybercriminals. This is very powerful protection from tech-savvy cyber-criminals who make their living from defrauding e-commerce companies through fake chargebacks.
15. Riskified uses information from multiple sources
Riskified uses a highly sophisticated system that even goes so far as scanning social media networks third-party databases, and their own in-house resources. The information that is found within these databases is used to automatically augment order data. This is a part of the complex system that is used to detect and identify fraud activity. On top of this elastic linking technology find connections between each new order that is placed and all of the other transactions that have been processed through the entire ecosystem of Riskified. The database is extensive.
16. Riskified is a privately held company
Riskified is a company that is privately owned. It has secured multiple rounds of venture funding to establish the enterprise, grow the programs and expand the business. There has been no mention of going public. It’s not surprising because Riskified has been doing very well through venture capital funding. The main reason for filing an IPO is to raise funds for expansion or new product development. Riskified has not had the need to seek funding outside of its current supporters. It has recently completed a round of Series E funding that has raised $165 million in venture capital funds.
17. Riskified is getting ready for yet another big expansion
As Riskified enters its eighth year of operation, there are plans underway for yet more expansion. The funds raised in the recent Series E funding round are earmarked for the further expansion of the company’s geographic footprint. Although details have not been discussed, it’s likely to be in the form of extending services to businesses in other countries besides Israel and the United States of America. A recent news release also indicates that Riskified is accelerating its product development.
18. The company started out in an apartment
Riskified has an interesting history. The founders Eido Gal and Assaf Feldman started the company from an apartment in Tel Aviv Israel. It was launched from their original office with just five staff members. Within 6 years, the number of employees grew from just five to over 350 as the company became established and started to grow a solid customer base for its SaaS platform. Currently, Riskified analyzes and reviews over a million transactions for their e-commerce customers on a daily basis.
19. Riskified has expanded to serve a broad range of clients
It’s impressive that Riskified has become so well-known in such a short period of time. The company serves clients from almost every industry including industrials, travel and leisure, electronics, luxury fashion houses, and much more. Many of the clients that it serves are publicly traded and well-known enterprise brands that conduct business in an e-commerce format. In addition to this, Riskified is revolutionizing e-commerce with its protection from fraudulent chargeback activities which has cost e-commerce companies billions in losses collectively. The company has the aim of serving global markets to create a more secure environment for those who engage in online business transactions. This is a very important service for companies that are vulnerable to cyber attacks from highly skilled thieves.
20. Riskified is a company to keep your eye on
In a world that is evolving into a technology-based marketplace for nearly every industry represented, the need for cyber-security measures is increasing. Riskified has entered the scene at a time when the need for fraud prevention is at its greatest. The SaaS platform that it offers has been successful in preventing a great deal of loss for companies of all sizes. The company has the financial and backing of multiple investors who realize the tremendous likelihood of receiving a high ROI for the investments made in Riskified and there is no shortage of funds for further development of products and expansion when it is needed. Riskified has exceeded the billion-dollar mark to become a unicorn company without the need for going public. It’s not a publicly-traded company so you won’t see them listed on the exchanges, but it’s still a company to keep your eye on. You never know when they will turn the corner and decide to file an IPO, however, this isn’t likely to happen any time soon. Riskified is a major player in the cyber-security industry and although they have not yet disclosed precisely what additions will be made to the current services offered, there was an indication that they are working on an expansion of the product line, as well as moving into new geographic territories with their latest new funding infusion. This is a company that is growing at a rapid pace and there is every indication that it is going to be around for a while.