Fraud Overwhelmed Phone Daddy's New Online Store
Mobile phones fall into one of the highest-risk categories in ecommerce because they are easy to resell and are frequently targeted by fraudsters. When Phone Daddy launched its new B2C storefront (PhoneDaddy.com), the company initially relied on Shopify’s built-in fraud filters to help identify suspicious orders.
Within months, however, Phone Daddy noticed a sharp increase in fraudulent activity. Suspicious purchases were appearing from the same locations and individuals using different email addresses, suggesting that fraudsters were targeting the store and succeeding in their efforts.
Flagged orders continued to rise, so Phone Daddy hired two full-time employees to manually review transactions and determine which orders were legitimate. This slowed approvals, leading to unhappy customers. The internal approval process resulted in a large number of false declines. Honest customers were unable to purchase phones on the site.
Before ClearSale:
- Fraud attempts reached as high as 85% during attack periods.
- Large volumes of orders were flagged for review.
- Most flagged orders were automatically declined.
- Manual reviews consumed valuable internal resources.
Phone Daddy had a major problem and needed help to resolve it.
ClearSale Delivered Advanced Fraud Protection Without Rejecting Legitimate Orders
Phone Daddy was searching for a stronger fraud prevention solution and selected ClearSale based on the company’s experience protecting thousands of retailers in more than 160 countries. ClearSale's fraud experience dates back to the very first online transaction. With fraud prevention expertise and significant experience dealing with high-risk ecommerce categories like phones, ClearSale was the perfect partner to protect Phone Daddy as its B2C business expanded online.
ClearSale began reviewing all PhoneDaddy.com orders for fraud. Early analysis quickly pinpointed several coordinated fraud patterns targeting the store. On days when order volume surged to nearly double expected levels, fraudulent activity accounted for as much as 85% of all transactions during those periods.
ClearSale worked fast by combining AI and machine learning technology with expert manual review teams to accurately identify fraudulent purchases while approving legitimate customers that may have otherwise been declined. This approach helped Phone Daddy reduce false declines while preserving the overall customer experience.
ClearSale also eliminated the need for extensive in-house order reviews, freeing internal teams to focus on business growth instead of fraud management.
Overall, ClearSale brought:
- Fast approval decisions
- Lower false decline rates
- Instant reporting
- Guaranteed protection against fraud-related chargebacks
As a result, PhoneDaddy.com was guarded by an efficient fraud prevention strategy built for long-term growth.
Stronger Approvals, Zero Chargeback Costs and More Time to Grow
After implementing ClearSale, Phone Daddy's resources were freed from dedicating countless hours to manually reviewing flagged orders, creating a more efficient operation and a faster customer experience.
Reducing false declines also meant Phone Daddy could identify and take advantage of additional revenue opportunities that might have been lost. And with Chargeback Guarantee, Phone Daddy had the peace of mind that fraud-related chargeback liability was mitigated, giving the company greater confidence as it expanded its B2C ecommerce business.
With fraud prevention managed by ClearSale, Phone Daddy now has more time to focus on growing its online store and serving customers instead of fighting fraud.
With ClearSale, Phone Daddy experienced:
- 6X more approved orders
- $0 fraud-related chargeback liability
- Increased revenue opportunities
- Reduced manual review workload
- More time focused on business growth
Protect Revenue While Delivering a Better Customer Experience
Fraud prevention should support growth, not slow it down. ClearSale helps merchants reduce fraud losses and improve approval rates with guaranteed protection for ecommerce businesses.
“It’s been an awesome experience. Everything is quick and efficient, and we really appreciate the partnership.”
Jelena Petrovic, Web Developer, PhoneDaddy.com
