Giftnix combats eGift fraud with digital identity solutions
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Giftnix
Giftnix.com is an online gift card store. Their secure and highly-rated platform is designed for the instant digital delivery of all sorts of gift cards from Bed, Bath & Beyond, Home Depot, iTunes, Xbox, Nike, along with so many other top brands, making instant gift giving quick and easy. Giftnix is considered one of the best sources for eGifts because their service starts with customer security.
Every day more and more personally identifiable information (PII) is being leaked or compromised in numerous company data breaches, resulting in increased fraudulent activity online. Bad actors use stolen credentials, financial and other personal information to purchase items and perform other malicious behavior across various eCommerce sites, impacting businesses like Giftnix and their legitimate customers. Devoted to providing quality service, Giftnix is aggressive in their approach to security, using a complete fraud prevention system to decrease fraud while increasing customer satisfaction.
The Challenge
Giftnix.com alleviates the stress of timeframes and deadlines for its customers, allowing gifts to be sent directly to recipients immediately after an order is placed. Giftnix was experiencing an influx of fraud through the use of stolen credit cards, fraudulent identities and other fraud vectors. Fraud and chargebacks can be costly to the company’s directly to recipients and brand reputation. Giftnix began looking for additional technology-based solutions to help them combat fraud and enhance their existing fraud prevention system. At the top of their list was finding an effective way to gain deeper insights into their customers without adding too much user friction or additional steps during the transaction process. They required actionable data that could help them identify fraud risks or potential value before a completed customer purchase.
The Solution
Giftnix evaluated several different solutions and ultimately chose TeleSign for their phone data intelligence services and fraud risk scoring, an advanced fraud screening technology that delivers a risk reputation result for any phone number submitted. Giftnix added TeleSign Score and SMS Verify to their existing workflows to build out a comprehensive fraud prevention platform that employs a multi-layer security approach.
“With the data that TeleSign provides, we know who our customers are. We’re able to determine fraudsters from legitimate customers, preventing fraud much quicker now,” stated Brandon Copley, Founder & CEO, Giftnix. “We’re also able to reach customers globally, with TeleSign’s SMS communications service to quickly close the loop on identity verifications, if needed.” Giftnix is now also able to ensure their mission-critical SMS messages are being delivered without issues, reaching international customers. This was problematic with their previous vendor.
Less fraud – experiencing significantly less credit card chargebacks & happier customers
According to Copley, TeleSign has been a great addition to Giftnix’s multi-layered security approach system. They are seeing less fraud from stolen credit cards, and as a result, significantly less impacts to their margins from costly chargebacks. With fewer calls coming into the Giftnix support team relating to invalid credit card charges, they are also seeing the added benefit of happier customers.
Enhanced customer verification & trusted digital identities – ability to verify customers instantly
Using Score, Giftnix has been able to establish more accurate and trusted digital identities for their customers.
By evaluating data and risk reputation scoring based on phone number intelligence, traffic patterns, machine learning and a global data consortium, Giftnix can—with a high degree of certainty—determine whether a customer is valid, risky, or linked to previous fraud. Other non disclosable insights can be gleaned and used to verify customers within milliseconds. Giftnix eGifts are sent to customers within minutes (up to 15 mins) of a purchase, a convenience their customers appreciate, since competitors can take up to 2 to 3 hours.
Broader SMS reach globally – critical SMS messages reach customers quickly
Since TeleSign’s global network reaches up to 230 countries and territories world-wide, Giftnix is able to accommodate international customers looking to purchase eGifts for friends and family in the US. Their former solution often ran into issues delivering SMS messagesin other countries which resulted in an increase in support calls.
