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How PayThem Manage High Risk Transactions With FraudLabs Pro


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Based in Australia, PayThem is a technology company specializing in electronic voucher distribution software solutions for vouchers, recharge cards, gift cards, real-time transactions and bill payments.

They have a solution to meet almost any business case, whether businesses or resellers who wish to distribute their own virtual products or resell PayThem’s range of products.

They own and manage distributorships in Qatar and the United Arab Emirates, while their electronic voucher distribution software is used in several other countries including Saudi Arabia, Egypt, Oman, Zambia and Zimbabwe.

"The Watchlist feature provided by FraudLabs Pro solved our problem from fraud!"

Andre Lamprecht, Chief Operating Officer of PayThem

The Challenge

The expansion of e-commerce has brought in a lot of new customers to a business, especially during the pandemic outbreak affecting many around the world. While PayThem is getting many new customers, the returning customers are equally important and have to be well taken care of as they are the lifeblood for recurring revenue. However, Paythem is facing issues with the newly approved customers, as based on their experiences, some may commit frauds in the next few purchases. This is one of the tactics employed by fraudsters aiming to lower the guard of merchants by disguising themselves as legitimate buyers in the first purchase. And, the ugly will come later.

Since PayThem has many returning customers, they are not satisfied with the single opportunity to review a "new customer”. Instead, they wanted to manually screen the same customer and review all purchases from those people several times until they are comfortable enough to remove them from the watchlist and rely exclusively on the automated fraud screening system. They need a better solution to minimize fraud without turning away good customers. It's time to look for an automated fraud detection system that could fulfill their business needs.

The Solution

Although there are so many fraud detection solution providers out in the market, FraudLabs Pro has emerged as the best option for PayThem. FraudLabs Pro not only offers a comprehensive fraud screening process, but more importantly it allows PayThem to repeatedly review the "new customers" before accepting them as legitimate customers. This could be achieved by using the Watchlist feature available in FraudLabs Pro. The Watchlist is a status whereby the merchant is unsure if the customer is legitimate or not, and further monitoring is needed. Now, PayThem is able to always add the new customers into the Watchlist, and to remove them only if PayThem is comfortable with their recurring purchases. In addition, PayThem also relies on the detailed fraud reports generated by FraudLabs Pro to facilitate their decision making.

The Results

This has saved PayThem efforts and valuable time to manually track new customers and screen the orders each time. Now, everything has been well organized and recorded into the system. PayThem can now instantly tell which customer is under Watchlist and which are not at their fingertip.

Although fraudsters keep changing tactics to commit online fraud, FraudLabs Pro is able to learn their fraud patterns by using the machine learning approach. This has further improved the fraud prediction and detection algorithm that also helped PayThem to stop suspicious transactions and therefore minimize the chargebacks.

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