Giftnix combats eGift fraud with digital identity solutions

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Reduced credit card chargebacks
Enhanced ability to verify customers
Broader global SMS reach
giftnix logo
“TeleSign combines phone data intelligence with SMS communications, a necessity for any eCommerce business”
Brandon Copley
Founder & CEO
Industry
eCommerce
Products

About

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.

Giftnix

Giftnix combats eGift fraud with digital identity solutions

The Challenge

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 margins and can negatively impact customer satisfaction 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.

Man sits at his laptop with his phone in one hand and a credit card in the other

TeleSign Delivered

verification

Reduced credit card chargebacks

verification

Enhanced ability to verify customers

verification

Broader global SMS reach

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. 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.

TeleSign combines phone data intelligence with SMS communications, a necessity for any eCommerce business to create trusted digital identities. We make instant data-driven fraud risk decisions and glean valuable insights on our customers to prevent more fraud.

Brandon Copley

Founder & CEO

Talk To An Expert

Interested in learning about how TeleSign's identity and engagement solutions can prevent fraud while fostering secure and global growth for your business? Let's chat.