Umzu and Kinobody Case Study
$48K
Annual chargeback losses eliminated
$63K
Annual overhead eliminated
0
Order delays
The Challenge
By 2018, the companies had grown quickly and were grossing over a million dollars in monthly sales—but under the surface, they were fighting a losing battle against fraud.
The anti-fraud tools provided by Shopify were not sophisticated enough to keep pace with the increasing complexity of the fraudulent attempts on their stores, which resulted in an increasing number of chargebacks. In order to stem the mounting losses, Umzu and Kinobody hired a full-time employee whose sole responsibility was to review orders for fraud with the limited data provided by Shopify’s Fraud Filter. During the holiday season and sales spikes, they relied on the customer service team to help manage the queue of orders under review.
Despite the team’s manual review of all transactions—Umzu and Kinobody continued to get hit with $3,000-$5,000 in chargebacks each month. Factoring in the cost of chargeback fees; the amount of lost product and the associated shipping fees; salary and benefits for the dedicated employee; and time spent disputing the chargebacks, the total annualized fraud loss ballooned to $135,000. With stronger sales anticipated as 2019 approached, the companies were on track to lose even more to fraud. Urgently seeking a viable solution, the companies’ owner turned to NoFraud.
The Solution
Having demoed a few fraud prevention tools back in 2017, Umzu and Kinobody decided to install NoFraud on their Shopify stores.
NoFraud’s deep integration into Shopify’s platform and compatibility with the third party checkout app, combined with their excellent reviews in the app store, made NoFraud the obvious provider of choice.
“I had installed NoFraud’s free trial, and was impressed with the service offering. At that point we were small enough of a business that I felt we could manage chargebacks in-house. In the months before re-installing NoFraud, the fraud attempts were increasing in sophistication, frustrating our fraud prevention analyst and customer service team and causing alarming financial loss. ur rapid growth magnified these challenges. I knew it was time to outsource our fraud prevention to the experts.”
The Results
From the moment of installation, NoFraud’s automated system instantly began finding and blocking fraudulent transactions, providing much needed relief from manual review and chargebacks.
“The stress the team was experiencing quickly evaporated. Aside from the obvious financial benefits, implementing NoFraud boosted the morale of my team. I certainly did not expect that outcome.”
Now that valid orders were being correctly identified and processed without the need for manual review, Umzu and Kinobody were able to focus on growing their business and redirect their customer service team to tasks specific to keeping their customers happy. Total annual fraud loss decreased from $135,000 per year to $0 per year, allowing the companies to use those funds for further investment in revenue generating projects.
“Operating two 8-figure brands opens us up to a lot of risk for fraud. By using NoFraud we’ve managed to cut our expenses drastically. With NoFraud’s full automation within Shopify, we’ve also freed up the resources of a full-time employee to service our customers better. We couldn’t be happier with NoFraud as our chargeback solution.”
Darren Crawford
COO, Umzu and Kinobody
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Customer Testimonials
Praise From Some of Our
Successful Customers
“5 stars across the board! We switched to NoFraud a year ago and not only did my approval rate increase drastically but pricing was also a lot more competitive. The integration is seamless and literally worked out of the box with zero changes to our current workflow.”
“NoFraud has been absolutely amazing. Before NoFraud, we were suffering from a barrage of fraud attempts, which resulted in tens of thousands of dollars of chargebacks. Once you install this app, fraudsters will give up hope. I think it’s a no-brainer.”
“Implementing NoFraud has vastly improved our business operations, not only by significantly reducing chargebacks and false positives, but by turning our inefficient fraud prevention process into a simple pass/fail decision that saves us loads of time and stress.”
“This is some of the best money we have ever spent. Integrating the app was quick and smooth, the support is fantastic and far superior to the service offered by some of their competitors. Our fraudulent orders have dropped by almost 60% since integrating NoFraud as compared to Signifyd and all orders that are charged-back are quickly reimbursed.”
“I switched to NoFraud from another guaranteed fraud prevention provider. My approval rate improved, pricing was more competitive, NoFraud customer support is superb and the user interface is intuitive and informative. My only regret is that I did not make the change sooner.”
“Normally not one to write reviews but absolutely must applaud NoFraud. I switched over from a big name competitor that dropped the ball huge on support. I’ve had no such issues with NoFraud — their support agents has been super responsive. The sales folks answered my every detailed question — even digging into API documentation. Their onboarding team was top notch. I was up and running super quick! Very happy.”
“The NoFraud app is really easy to install and set up. NoFraud’s analysis has been much more effective than the standard default Shopify fraud analysis. It catches fraud missed by Shopify and passes orders that Shopify said were high risk. Best part is, you can contact NoFraud and speak with someone.”
“The team at NoFraud are amazing. They have been a strong partner against the fraudsters. Right before we signed up we were hit with several thousand dollars of Mule Fraud. The addition of this app has definitely saved us money. Worth every penny. I would totally recommend them.”
“We can’t say enough wonderful things about the team at NoFraud. They are extremely responsive, knowledgeable, and easy to work with. The peace of mind we get from knowing that they are handling the fraud check process is invaluable. NoFraud’s system consistently delivers accurate order ratings and recommendations.”
“NoFraud has been fantastic. We switched from Signifyd and haven’t looked back. Better rates, vastly simpler customer service, easier touch points for service/help, chargeback protection and filing on our behalf (this was huge — of the few chargebacks we’ve gotten, NoFraud takes care of them and we’re good to go!). Super fast verifications (if/when needed). Great staff. All in all, definitely recommend going with this app!”
“Excellent communication. Easy to use service. Available to resolve and questions or concerns that arise in a timely manner.”
“NoFraud’s ability to extend internationally is great since we have no experience or knowledge in international sales. Without NoFraud, we’d have to learn everything there is to know about fraud detection in another market.”
“When I did a chargeback audit over the last 5 years before NoFraud, I saw that had I been a NoFraud customer for 10 years, I could’ve bought a boat with all the savings.”
“We didn’t realize how much money we were leaving on the table until we used NoFraud.”
“Turning NoFraud on was like a magic switch. Poof! All of a sudden our fraud problems disappeared.”
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