Scenario
A major online dating company helps people worldwide make romantic connections. It offers a platform for subscribers to connect, communicate and enter successful relationships. Chargebacks were already a problem for the dating site when it realized its sourced leads contained significant fraud. The company lacked clear fraud identification and faced the risk of losing hundreds of thousands of dollars annually.
Strategy
The client needed a cost-effective way to distinguish good dating candidates from bad actors and reduce chargebacks. TransUnion® fraud experts recommended end-to-end risk insights covering the devices and email addresses accessing the client’s services. We suggested TruValidate™ Device Risk and TruValidate Email and Phone Verification. These services focused on mitigating fraud risk at two critical points in the customer journey.
Account creation
Starting when a new customer fills out a registration form, Email and Phone Verification provides valuable information about each lead. This delivers clear insights into potential fraud risks. It also allows the client to evaluate the value of each lead and the source delivering them. Furthermore, it gives the marketing team confidence to move leads through the funnel.
Payment
At checkout, Device Risk automates fraud risk evaluation of each profile to reduce chargebacks. This saves the company significant time and resources. Staff no longer need to manually sift through profiles to spot fraudulent transactions or likely chargebacks.
Results
Before implementing Email and Phone Verification, the company couldn't calculate fraud on a per-lead basis. Now, it can identify fraud and take preventative action. Since deploying Device Risk and Email and Phone Verification, the company’s chargeback rate has remained below 1%. Furthermore, ROI quadrupled, significantly outpacing initial KPIs.
