California-based Blue Robotics sells components, parts, and supplies for marine robotics. With a global customer base that ranges from everyday consumers to high-profile organizations like the NASA Jet Propulsion Laboratory, Blue Robotics’ products help people better understand the ocean, engage in exploration, and more.
The Challenge: Staying on Top of Savvy Fraudsters
Rustom Jehangir founded Blue Robotics with a vision to make marine robotics more accessible to people all over the world. With an enormous online catalog of products, affordable prices, and same-day international shipping, purchasing from Blue Robotics is nearly effortless.
Unfortunately, savvy fraudsters quickly stepped in to take advantage of this easy online environment. These fraudsters would bulk purchase items with the best resale value and have them shipped to international addresses, often using PayPal to pay for the transactions. The patterns to the fraud varied, making the fraudulent orders difficult to spot: Fraudsters would even sometimes ship to a U.S. freight forwarder to mask an international shipping address.
Rustom and his small team spent hours trying to stay on top of the problem. They manually reviewed every online order. They declined orders that were even a tiny bit suspicious. They stopped selling products that were the biggest fraud targets. They contacted customers directly to verify identities. They even asked new customers to pay for their orders via ACH bank transfers rather than credit cards. And yet, this only served to limit their revenue, irritate their good customers, and stretch their thin staff even thinner. Worst of all, fraudsters were still slipping through the cracks.
For a small but actively growing company, every order counted – and with fraud losses approaching 5% of revenue, the chargebacks needed to stop. Rustom realized they needed to work with an e-commerce fraud expert.