MOUNTAIN VIEW, CA, Sept. 21, 2020 – DataVisor, the leading fraud detection company with solutions powered by transformational AI technology, today announced that its comprehensive fraud and risk management platform is proven to reduce shipping fraud by millions annually.
The solution does this by leveraging AI and advanced machine learning, holistic data analysis and accelerated case review to uncover unknown fraud patterns early — either at signup or when requests are submitted for package reroutes. One leading logistics and delivery company that uses the DataVisor platform reduced shipping fraud losses by $4 million annually.
Fraudsters can use fake or stolen credentials to pose as legitimate customers and redirect deliveries to their own addresses, either by calling the customer service center or using a delivery company’s online shipping portal to modify orders. They also mass register online accounts to send emails to good customers and execute advertising fraud and scams. Such attacks often bypass traditional fraud prevention systems that don’t review data holistically or at scale, and lack advanced AI and machine learning technologies that can adapt to fast-evolving fraud.
“Whereas rules-based solutions rely on historical data and labels to spot potentially fraudulent activity, solutions that leverage AI and advanced machine learning help organizations spot both known and unknown fraud patterns in real time,” said Yinglian Xie, Co-founder and CEO, DataVisor. “This is important, because fraudsters modify their techniques and have access to AI-powered tools and bots that defy detection. Solutions that leverage such technologies can detect fraudulent accounts up to 30 days earlier than legacy rules-based solutions.”
DataVisor Customer Increases Detection by 60%
One DataVisor had been plagued by fraudsters mass registering fake accounts and using them to redirect packages or issue package holds for delayed pickups. They were also spamming good customers with malicious advertising and emails requesting package-related details. Additionally, fraudsters were tracking thousands of fraudulent shipping actions using the company’s online portal. As a result, the company was incurring substantial financial losses and reputational damage.
“Shipping fraud had become an insurmountable problem that was costing the company millions of dollars annually,” said Xie.
After implementing DataVisor, the delivery company was able to detect a malicious attack made by 257 fake users — all of which had registered in a four-day span in March of this year. They also prevented an attack involving an additional 30 users in April. By correlating fraudulent activities that share similar characteristics, including email address patterns, IP addresses and device IDs, DataVisor has enabled the delivery company to detect 60% more fraud attacks than its legacy fraud and risk solutions in just one year. Additionally, DataVisor’s advanced case management capabilities helped the company improve review efficiency by 40%.
Shipping Fraud Is a Growing Problem
In the United States, the U.S. Postal Service handles more than 500 million pieces of mail each day, while FedEx and UPS deliver a combined 34 million packages. Experian reports that shipping fraud rates increased by 37 percent from 2016 to 2017 and shipping fraud attack rates increased by 60% in the Western U.S. alone. The Covid-19 pandemic has contributed to the problem, as people increasingly turn to online channels to order goods shipped to their doors. Without AI-powered fraud and risk platforms such as DataVisor, logistics and delivery companies stand to lose millions due to these malicious activities.
“Advanced technologies such as UML and holistic data analysis can help logistics and delivery companies detect fraud attempts early and in an automated fashion, no matter where they originate,” said Xie. “This prevents attack and downstream damage, while reducing the high cost and operational overhead often associated with traditional methods of fraud prevention.”
For more information about DataVisor’s digital fraud solutions, visit www.datavisor.com.
About DataVisor
DataVisor is the leading fraud detection platform powered by transformational AI technology. Using proprietary unsupervised machine learning algorithms, DataVisor restores trust online by enabling organizations to proactively detect and act on fast-evolving fraud patterns, and prevent future attacks before they happen. Combining advanced analytics and an intelligence network of more than 4.2B global user accounts, DataVisor protects against financial and reputational damage across a variety of industries, including financial services, marketplaces, e-commerce, and social platforms.