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Founded Year

2012

Stage

IPO | IPO

Total Raised

$228.65M

Date of IPO

7/28/2021

About Riskified

Riskified (NYSE: RSKD) provides a payment fraud management platform. It helps businesses reduce fraud losses, improve customer experience, and increase sales. It offers solutions for online merchants, marketplaces, electronic travel retailers, and digital goods and services providers. The company was founded in 2012 and is based in New York, New York.

Headquarters Location

220 Fifth Avenue

New York, New York, 10001,

United States

855-622-5868

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Research containing Riskified

Get data-driven expert analysis from the CB Insights Intelligence Unit.

CB Insights Intelligence Analysts have mentioned Riskified in 4 CB Insights research briefs, most recently on Feb 27, 2023.

Expert Collections containing Riskified

Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.

Riskified is included in 10 Expert Collections, including E-Commerce.

E

E-Commerce

10,548 items

Companies that sell goods online (B2C), or enable the selling of goods online via tech solutions (B2B).

R

Regtech

1,563 items

Technology that addresses regulatory challenges and facilitates the delivery of compliance requirements. Regulatory technology helps companies and regulators address challenges ranging from compliance (e.g. AML/KYC) automation and improved risk management.

S

SMB Fintech

1,647 items

P

Payments

2,779 items

Companies in this collection provide technology that enables consumers and businesses to pay, collect, automate, and settle transfers of currency, both online and at the physical point-of-sale.

A

Artificial Intelligence

10,944 items

Companies developing artificial intelligence solutions, including cross-industry applications, industry-specific products, and AI infrastructure solutions.

T

Tech IPO Pipeline

282 items

Track and capture company information and workflow.

Latest Riskified News

Study: Online retailers lose $1B annually due to refund scams, other policy abuses

Sep 21, 2023

Image Two-thirds of retailers said they can recoup less than half of the total value of a returned item. Consumer misuse of return policies, coupon and loyalty programs is taking a toll on retailers’ profits. Nearly all (90%) of online retailers believe policy abuse by consumers is a significant problem for their bottom lines, according to a global study by e-commerce fraud and risk intelligence company Riskified. The behaviors include excessive returns, refund scams (such as claiming an item was not received or returning empty boxes), abusing coupon codes and loyalty program rewards, and reselling limited-inventory items. Policy abuse can cost some merchants even more than traditional fraud chargebacks, resulting in over $100 billion in losses for e-commerce merchants worldwide, the report said. The study found that while lenient return policies and promotion programs are driving lost profits, most merchants feel they must maintain their approach. Indeed, 93% of retailers said it is “somewhat important” or “very important” for their companies to offer generous refund and return policies to win new customers and retain loyal ones. And 90% of respondents said they are reliant on promotions to drive sales and remain competitive. Other key findings from the Riskified’s “Policy Abuse and Its Impact on Merchants: Global Benchmarks 2023” report  are below. •Policy abuse “peaks” at certain times of year. Seventy-percent  of online merchants experienced a rise in all forms of policy abuse during the summer shopping season, and two-thirds (67%) saw more policy abuse during the post-holiday returns season. •Two-thirds of retailers (67%) said they can recoup less than half of the total value of a returned item. •Nine out of 10 online retailers said they face significant costs due to policy abuse. •Losses from policy abuse have increased year-over-year. More than half (57%) of merchants faced increased costs from INR (item-not-received) abuse between 2021 and 2022, compared to a 45% year-over-year increase for reseller abuse, a 38% year-over-year increase for promotional code and loyalty program abuse, and 37% year-over year increase for returns abuse. Policy abuse is a unique problem for merchants to tackle because, unlike traditional fraud, it can be committed by people who are otherwise good customers, and in most cases it requires no special skills or access to stolen credentials or accounts, the report noted. An analysis of Riskified client data, for example, shows that on average 20% of all refund claims are abusive. Merchants are also burdened by the operational impacts of processing refunds and returns, most of which are handled manually. Sixty-two percent  of merchants said they do not currently have automated systems (including machine learning) to accurately identify and address policy abuse. Also, 65% of respondents use a manual review process for the majority of refund and return claims. It takes most retailers (68%) three to four days to process a refund or return. “Although a wonderful experience for good consumers, a growing spectrum of hidden policy abusers have tipped the scales — deeply hurting merchant profitability,”  said Jeff Otto, CMO, Riskified. “The key to solving this challenge is resolving the true identity of the consumer, extending trust and frictionless experiences to good customers, while curbing the abusers, and stopping the fraudsters.” According to Riskified’s data, the motivation for committing policy abuse is due to a mix of economic factors (such as inflation or entering a holiday period during which consumers have stretched disposable income) and emotional factors (such as a bad customer experience with a retailer).

Riskified Frequently Asked Questions (FAQ)

  • When was Riskified founded?

    Riskified was founded in 2012.

  • Where is Riskified's headquarters?

    Riskified's headquarters is located at 220 Fifth Avenue, New York.

  • What is Riskified's latest funding round?

    Riskified's latest funding round is IPO.

  • How much did Riskified raise?

    Riskified raised a total of $228.65M.

  • Who are the investors of Riskified?

    Investors of Riskified include Lafayette Plug and Play Accelerator, Entree Capital, Qumra Capital, Pitango Venture Capital, General Atlantic and 20 more.

  • Who are Riskified's competitors?

    Competitors of Riskified include Fraud.net, FUGU, Jewel Paymentech, BehavioSec, nSure.ai and 16 more.

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  • Identify tomorrow's challengers
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Compare Riskified to Competitors

Sift Logo
Sift

Sift provides real-time machine learning fraud prevention solutions for online businesses across the globe. Its machine-learning software automatically learns and detects fraudulent behavioral patterns and alerts businesses before they or their customers are defrauded. It provides its services in a wide range of industries such as financial technology, retail, payment service providers, and more. It was formerly known as Sift Science. The company was founded in 2011 and is based in San Francisco, California.

Signifyd Logo
Signifyd

Signifyd operates as an online commerce protection platform. It combines machine learning with human work to eliminate online payment fraud for e-commerce companies. The company leverages big data, machine learning, and domain expertise to provide a financial guarantee against fraud on approved orders. The company was founded in 2011 and is based in San Jose, California.

Forter Logo
Forter

Forter provides fraud prevention and protection solutions for e-commerce companies. It offers solutions such as fraud management, abuse prevention, identity protection, payment optimization, chargeback recovery, and more. It was founded in 2013 and is based in New York, New York.

Shield Logo
Shield

Shield is a software-as-a-service (SaaS)-based self-learning fraud prevention solution for e-commerce. It combines latest fraud detection technology with machine learning, predictive analytics, and big data that runs on an optimized risk algorithm to compute the decision for accepting or rejecting each transaction. It was formerly known as CashShield. It was founded in 2008 and is based in Singapore, Singapore.

N
NS8

NS8 is an eCommerce company that provides abuse, fraud, and user experience protection tools. The company uses behavioral analytics, real-time user scoring, and global monitoring to optimize and protect against threats, which give eCommerce merchants insight into their real customers.

Ravelin Logo
Ravelin

Ravelin provides fraud and payment authentication solutions for businesses. The company offers solutions such as online payment fraud, account security, policy abuse, marketplace fraud, and more. It was founded in 2014 and is based in London, United Kingdom.

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