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Overview

Our client operates in the digital goods and services industry (DG&S) and specializes in selling games online on a global scale. DG&S faces many threats and one of the main challenges is rapidly growing fraud trends. It’s an easy target for cybercriminals and the reasons are simple - much easier and faster purchasing and distribution processes compared to the typical e-commerce sales and significantly less data left by the user that can be verified by the merchant.

The company reached out to Nethone with the problem of the soaring number of rejections among online traffic, which had hindered their business development. Simultaneously, the client wanted to lower the number of chargebacks.

Thanks to a thorough understanding of the client’s needs and matching them with the gradual company development, Nethone met the client’s expectations. The constant support and fast communication were greatly appreciated by the client.


Challenges

Too much rejected traffic
Too much rejected traffic
One of the common practices of reaching the KPIs set by a client is the tendency to reject users who appear suspicious at a glance, while in fact, they are legitimate customers. Nethone decided to go after a less common practice, by reducing chargeback rates while accepting more traffic.
High Chargeback ratio
High Chargeback ratio
Keeping chargeback rates at a “safe” level is a must for a company operating in the digital goods and services industry (DG&S).

Solution

Nethone proprietary Profiler gathers over 5000 attributes and unique fingerprints about each user. All these metrics help to understand the typical behaviour of the online customer and detect the abnormalities suggesting fraud. Basing on that, the Profiler delivers relevant, actionable and accurate recommendations in real-time. Additional feature engineering conducted by Data Scientists on data coming from the Profiler increases the precision of payment fraud detection.

After three months of PoC, our Profiler helped increase the approval rate. In the end, Nethone managed to boost the client’s sales results.

While starting the cooperation with the client, Nethone established a set of rules firstly. Such a step allowed us to monitor and understand the online traffic on the client’s checkout page, while simultaneously provided a basic security layer against the most common types of fraud. The rules were constantly being developed as we were analyzing and getting to understand the traffic better. In addition, our team of Data Scientists developed customized ML models to prevent chargebacks and to improve the results of the previous solution provider.

This way Nethone managed to lower the chargeback rate what allowed to unlock new markets with high fraud risk.

Moreover, Nethone was taking into account every client’s request, insights, and knowledge of the industry on a daily basis and enriched it with its own experience, gained in risky geographies and verticals. Therefore, as a result of the client service and achieved results, the gaming company has decided to cooperate with Nethone exclusively, resigning from the previous provider.

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Conversion rate improvement
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Chargeback rate decrease

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