“Over the last two weeks, we have observed 2-10% of total orders being fraudulent on the affected merchants. For some, it has been as high as 15-20%. However, with our return to origin (RTO) risk intelligence and fraud prevention mechanisms, we were able to intervene and safeguard merchants immediately. We fear that the actual number of brands affected in the overall ecosystem outside of GoKwik network will be far higher,” said Chirag Taneja, cofounder and CEO of GoKwik.
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The company has over 1,200 ecommerce brands in its network including Lenskart, Neemans, Man Matters, Purplle and Shoppers Stop in fashion, beauty, health and nutrition, electronics and other key categories.
Online shoppers continue to increase in India but cash on delivery (COD) remains the preferred mode of payment. The chances of RTO are significantly higher in these orders as opposed to prepaid orders. GoKwik offers a range of solutions that can predict customer behaviour and help sellers prevent RTOs while ensuring COD serviceability across regions.
RTO is when undelivered orders are returned before delivery causing a major setback to operations for exommmerce brands as they add to logistics costs, inventory blockage, loss of true conversions and leaking profitability.
“Through its network intelligence, GoKwik is able to catch 80% of all fake orders attempted. In addition, we examine each case and suggest the enablement of medium to high-power interventions such as OTP verification on COD orders and this is helping bring up the fraud order elimination rate to up to 95%,” added Taneja.
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Some system-identified bad or fraudulent agents have been placing multiple fake orders by using either the same phone number or contact details with common IP address apart from orders getting placed by non-existent or switched-off phone numbers If there is a history of chargebacks associated with the user profile or phone number used to place the order, there’s a good chance the current order is fraud, said the company which is rolling out measures to secure ‘anti-fraud checkout experience’.These include detecting phone numbers placing COD orders with very high frequency across its network, gibberish detection in name and email addresses and catching fraudulent orders through common IP addresses or pincode clusters.
