Challenge
Skincare and cosmetic brands are often targets for fraudulent charges due to the high potential resale value of their products. But Dermalogica’s mixture of professional and consumer online sales means that a one-size-fits-all fraud solution would not work. Professional buyers have a high lifetime value and rely on their purchases to sustain their businesses, making a false positive for fraudulent charges particularly costly. Dermalogica needed to be confident in a low false positive rate for their professional customers while also protecting against fraudulent charges.
Managing fraud while optimising customer experience was a challenge until Dermalogica was able to use Radar to customise its fraud management.
Solution
With Radar for Fraud Teams, Dermalogica has been able to focus fraud prevention efforts where they matter most. Using whitelisting and rules, they can ensure professional customers have a seamless ordering experience while providing extra protection for the higher risk orders.
Radar has given us the flexibility we need to customise our fraud management approach for different customer segments, while still relying on an always-on system to do the heavy lifting.
Results
In Dermalogica’s first six months of using Radar, it has seen fraud rates cut by half, to levels well below those of typical e-commerce companies.
The updated machine learning models have made it even easier to manage our fraud rates. Without any additional effort, we saw our fraud rates drop by half in just a few months.
