In the first year of going live with Optimize, there was an increase in prevented fraud of almost £4 million.
Go-Ahead, a transport company with 38 years’ experience in the bus and rail industry, was observing fraudulent activity which was consuming significant time and resource for the Group Retail Fraud Prevention Manager, Debs Mayne, and her team. They were incurring costs and seeing a reduction in conversion rates, impacting revenues as a result.
Also, whilst successful in identifying fraudulent transactions, Go-Ahead’s previous fraud tool didn’t give the Fraud Prevention team the control they needed to manage and adapt the rules - any changes had to be requested via a third party, which caused delays.
Optimize is Pay360’s award-winning comprehensive identity and fraud management suite which features a powerful real-time rules engine, enabling payment acceptance rules to be built to suit specific scenarios, from simple checklists to complex strategies, encompassing multiple data sources to select from when creating these bespoke rules. This, combined with the thousands of unique data points available in Optimize, exposes suspicious behaviour as early as possible for global intelligence gathering, social media analysis, know your customer (KYC), anti-money laundering (AML) and enhanced identity verification (ID&V).
After trialling Pay360’s anti-fraud solution, Debs could see immediately how it would help the company reduce fraud and chargebacks. She explains: “I could see how the rules applied to live data. It was clear chargebacks would reduce over time and, through the pilot and go-live, this has proved to be the case.”
An easy integration and implementation
In January 2018, Go-Ahead deployed Optimize. The integration required limited API coding changes: rules could be generated and activated seamlessly within the Optimize interface on Go-Ahead’s management information portal. Optimize’s intuitive, user-friendly interface allows businesses to build payment acceptance rules to suit specific scenarios, ensuring these meet their risk appetite at any time.
Introducing a set of fraud rules which dictated acceptance of transactions was quite unprecedented for Go-Ahead’s day to day processing, so the activation of any rules needed to be carried out carefully and meticulously. The fact that Pay360’s anti-fraud solution also offers the ability to set production rules into a live test mode offered Go-Ahead greater control - they could allow Optimize analytics to run on their live transactions volume without having a bearing on transaction authorisations. This made a huge difference, both in practical terms and in helping the Go-Ahead fraud team build up confidence in their rule parameters.
A rule was set up to govern acceptance of 3D Secured transactions which didn’t grant chargeback liability shift for Go-Ahead. Go-Ahead applied this rule to their busy Gatwick Express account, minimising the possibility of fraudulent orders slipping through the net unnoticed, which had been the case historically. Those rules were so effective, they’re still in place today.
The impact – significantly reduced fraud and chargebacks
The flexible, powerful rules engine makes fraud detection easier and has led to a significant drop in chargeback levels. Debs Mayne explains: “Since using Optimize, our chargeback levels have reduced by £3-4,000 per month on average below the previous threshold.” This is hugely positive as chargebacks are costly and expensive to defend.
From January 2018, when Optimize first went live, to the end of the year, there was an increase in declined fraud across both Govia Thameslink Railway (GTR) and Southeastern of almost £4 million pounds compared to previously.
In four weeks from 11 November to 8 December 2018, Go-Ahead managed to prevent an additional £190,000 in fraudulent transactions for Govia Thameslink Railway (GTR) compared to previously, representing an increase in stopped fraud of 27.6% for the period. Southeastern saw an increase in prevented fraudulent transactions of over £75,000 for the same period, an increase of 28.3%.
“Within one month of using Optimize we saw a 54% increase in stopped fraudulent activity and we’ve continued to see a consistent amount of declined fraud every month since.”
Debs Mayne, Go Ahead Retail Fraud Prevention Manager
Debs Mayne, Group Retail Fraud Prevention Manager, says: “Within one month of using Optimize we saw a 54% increase in stopped fraudulent activity. I thought the reduction in chargebacks would take time, but we saw this reduction almost immediately, and we’ve continued to see a consistent amount of declined fraud every month since.”
“Optimize enables us to be more proactive than ever before. We can make more informed decisions when managing rules, and even trial them before implementing on live data. Now we can tailor rules to determine whether or not to accept or reject transactions according to our risk appetite.”
Optimize is a valuable tool for payments security, protecting the interests of all businesses accepting online payments by ensuring they’re better equipped to prevent fraud while optimising business revenue.
The unique capabilities of Pay360’s fraud and risk management suite have been recognised by three prestigious awards in 2019 – Optimize has been awarded: Security Innovation of the Year in the 2019 National Technology Awards; a PCI Award for Excellence; and Best Use of Technology at the 2019 Credit Awards.
“Optimize is a powerful tool, equipping our fraud team with what they need to easily uncover and reject suspicious activity by ensuring better, faster business decisions - this has resulted in quantifiable reduced chargebacks and increased revenue to Go-Ahead, supporting our success as a business.”
Kanwar Brar, Go-Ahead IT Operations Director