Forter’s 2022 IMPACT Conference brought together digital commerce leaders from various industries. They were invited to share critical insights into how they’re tackling the multitude of fraud challenges they face in today’s complex marketplace.
One such industry leader was PacSun. We were joined by Shirley Gao, PacSun’s CIO, who shared a story of the rewards abuse they encountered among their own legitimate customers.
For PacSun, their loyalty program is a cornerstone of goodwill for fans of the brand. Offering birthday discounts and new membership perks was a feel-good opportunity for one of the world’s leading retailers. However, as fraudsters and good customers alike started finding ways around the loyalty sign-up process and abusing their generous incentives, PacSun’s manual review process for detecting these problematic accounts became outmatched and overwhelmed.
“There were customers gaming the (loyalty program) … and we used to have to assign individual people to manually watch those orders,” Gao said. “It hurt the business and had a pretty bad financial impact. There could be a day we had to cancel 500 orders, and this is not just one day … it continued to happen every day for weeks.”
Looking for a long-term solution, PacSun turned to Forter to help implement an abuse solution that would enable the company to eliminate manual reviews and better manage customer behavior.
“Instead of babysitting every day, now we do periodical analysis and just make sure the system is working,” Gao said. “We give feedback to the Forter team, and they with us to continue to improve our policies and improve our processes.”
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