85% of Merchants Battle to Balance Customer Experience and Fraud Prevention
MWN-AI** Summary
At the recent Ascend 2025 event held in New York City, Riskified, a leader in ecommerce fraud prevention, revealed insights from a live survey of over 130 ecommerce professionals regarding the ongoing battle between enhancing customer experience and preventing fraud. As global ecommerce sales are projected to approach $8 trillion by 2028, the threat of sophisticated fraud continues to rise. Merchants face significant challenges, with annual losses due to payment fraud, false declines, and return abuses estimated at $448 billion.
The survey found that 85% of respondents struggle to minimize friction for legitimate customers while simultaneously managing fraud risk. An alarmingly high false decline rate of up to 5% means that approximately $50 billion in potential revenue is lost, highlighting the need for effective fraud management strategies. Nearly 54% of the professionals identified the checkout and purchasing process as ripe for improvement, emphasizing a desire to streamline operations while managing risk effectively.
Industry leaders from renowned companies such as Amazon and Macy’s discussed innovative approaches, leveraging AI and collaborative strategies to transform fraud prevention into a key component of business growth and customer trust. Riskified showcased its AI-driven technology initiatives, including Adaptive Checkout and Policy Protect, aimed at enhancing fraud prevention capabilities.
Jeff Otto, Riskified's CMO, asserted that tackling fraud has evolved into a strategic business decision rather than just a back-office concern. The summit also featured collaborative roundtables focused on specific vertical challenges, promoting solutions tailored to various sectors like fashion, travel, and electronics.
Overall, the findings suggest that merchants must rethink their approach to fraud prevention, incorporating it into their growth strategies to drive revenue while ensuring a seamless customer experience.
MWN-AI** Analysis
The recent survey conducted at Riskified's Ascend 2025 event reveals critical insights for ecommerce merchants grappling with the dual challenges of enhancing customer experience while fortifying fraud prevention measures. With projections indicating global ecommerce sales nearing $8 trillion by 2028, the increasing sophistication of fraud tactics presents a pressing concern for businesses. A staggering $448 billion is lost annually due to payment fraud and false declines, underscoring the necessity for strategic fraud management.
The survey highlighted that 85% of ecommerce professionals struggle with the delicate balance of minimizing friction for genuine customers without amplifying fraud risk. A false decline rate of 5%, translating to an estimated $50 billion in potential lost revenue, indicates that improving fraud management could catalyze significant topline growth. This presents a clear market opportunity for merchants willing to invest in advanced fraud prevention technologies.
Importantly, approximately 54% identified the initial checkout and purchase flows as the prime area for enhancement in fraud prevention strategies. Streamlining these processes not only bolsters the customer experience but also enhances fraud detection capabilities—an area that merchants should prioritize.
Adopting a proactive stance on fraud, as emphasized by industry leaders at the event, will likely enable companies to leverage tools like Riskified's AI-driven solutions. These innovations, aimed at addressing complex fraud scenarios, could transform fraud from a mere operational hurdle to an integral component of growth and customer trust.
In light of these insights, it is advisable for merchants to invest in sophisticated fraud detection technologies. This will ensure they not only reduce their risk exposure but also enhance customer loyalty and ultimately drive revenue growth in an increasingly competitive ecommerce landscape. Regularly revisiting fraud strategies in alignment with evolving consumer behaviors and technological advancements will be key to sustaining long-term success.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Live survey insights from 130+ ecommerce industry professionals reveal how fraud decisions shape revenue and customer trust
Riskified (NYSE: RSKD), a global leader in ecommerce fraud prevention and risk intelligence, today shared new insights from a live survey conducted at its flagship event, Ascend 2025, at the 1 Hotel Brooklyn Bridge in New York City. The survey results highlight key challenges and opportunities in ecommerce fraud prevention and its strategic role in driving profitable growth and elevating the customer experience.
As global ecommerce sales are projected to rise to nearly $8 trillion by 2028 (eMarketer), the sophistication of fraud continues to grow alongside it. Merchants lose as much as $448 billion annually due to payment fraud, false declines, and returns and refund abuse. At Ascend 2025 in North America, Riskified gathered more than 130 professionals from across the ecommerce ecosystem, including merchants representing approximately $1T in annual ecommerce transaction volume. Live polling conducted onsite captured how the ecommerce industry is responding to current challenges:
- When asked to identify their biggest challenge in optimizing customer experience while preventing fraud, 85% of respondents cited the need to reduce friction for good customers without increasing fraud risk - underscoring the complexity of balancing automation, manual review, and customer journey consistency.
- Nearly half (47%) of respondents estimate that up to 5% of legitimate customer orders are falsely declined. For the respondents, a 5% false decline rate equates to approximately $50 billion in lost revenue that, with the right fraud management approach, can instead be converted into topline growth.
- Approximately 54% of respondents selected “initial checkout and/or purchase flow” as the area that offers the greatest opportunity for improvement in fraud prevention, signaling a focus on reducing friction and risk at this critical point in the customer journey.
These results underscore discussions at Ascend 2025, where speakers from Amazon, Macy’s, Super.com, Christian Dior, Rue Gilt Groupe, Appriss Retail, Primer, Ethoca, and others presented cutting-edge strategies combining AI, data science, and cross-functional and cross-industry collaboration to turn fraud prevention into a strategic lever for business growth. To empower merchants to meet escalating challenges head on, Riskified showcased its newest lineup of AI-first tech designed to combat the most sophisticated fraud and policy abuses including Adaptive Checkout , Policy Protect , and Dispute Resolv e .
“Fraud isn’t a back-office problem anymore — it’s a front-line business decision,” said Jeff Otto, Chief Marketing Officer, Riskified. “This survey confirms that the most successful companies are those that treat fraud strategy as a key enabler for growth, conversion, and customer trust.”
Riskified’s Ascend 2025 North America Summit also featured industry roundtables focused on vertical-specific risks including electronics, fashion, remittance, footwear, omnichannel retail, travel, and gift cards — fostering collaboration and practical solutions among peers.
For more information on Riskified and Ascend 2025, which is taking place all over the world, visit https://www.riskified.com/global-ascend/
About Riskified
Riskified (NYSE:RSKD) empowers businesses to unleash ecommerce growth by outsmarting risk. Many of the world’s biggest brands and publicly traded companies selling online rely on Riskified for guaranteed protection against chargebacks, to fight fraud and policy abuse at scale, and to improve customer retention. Developed and managed by the largest team of ecommerce risk analysts, data scientists, and researchers, Riskified’s AI-powered fraud and risk intelligence platform analyzes the individual behind each interaction to provide real-time decisions and robust identity-based insights. Riskified was named to CNBC's World’s Top Fintech Companies in 2024. Learn more at riskified.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20250618980400/en/
Investor Relations: Chett Mandel, Head of Investor Relations
ir@riskified.com
Corporate Communications: Cristina Dinozo, Senior Director of Communications
press@riskified.com
FAQ**
How does Riskified Ltd. Class A RSKD plan to leverage AI technology in its fraud prevention strategies to address the projected $448 billion annual losses due to fraud in the ecommerce sector?
What specific measures is Riskified Ltd. Class A RSKD implementing to reduce the estimated 5% false decline rate of legitimate orders and convert this into topline growth for merchants?
Given the focus on optimizing the initial checkout and purchase flow in fraud prevention, how does Riskified Ltd. Class A RSKD prioritize improvements in these areas to enhance customer experience while minimizing fraud risk?
In light of the insights gathered at Ascend 2025, how does Riskified Ltd. Class A RSKD intend to position itself as a strategic enabler of growth and customer trust in the increasingly competitive ecommerce landscape?
**MWN-AI FAQ is based on asking OpenAI questions about Riskified Ltd. Class A (NYSE: RSKD).
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