Kogan Boosts Approval Rates and Strengthens Customer Experience with Riskified’s AI-Powered Fraud Prevention
MELBOURNE, Australia — Riskified (NYSE: RSKD), a global leader in ecommerce fraud prevention and risk intelligence, today announced the successful results of its collaboration with Kogan.com, one of Australia’s leading online retailers. By leveraging Riskified’s AI-driven fraud prevention platform, Kogan achieved approval rates exceeding 98%, identified approximately $1.5 million in annual savings through improved management of fraud and policy abuse, and enhanced the overall customer shopping experience by approving more legitimate transactions with greater confidence.
The partnership highlights how modern ecommerce businesses can balance strong fraud prevention with seamless customer experiences, enabling sustainable growth while reducing operational complexity.
Supporting One of Australia’s Largest Online Retailers
Founded in Melbourne in 2006, Kogan.com has grown into one of Australia and New Zealand’s most recognized ecommerce companies. Today, the company serves more than 3.5 million customers through an expanding portfolio of retail brands, including Kogan.com, Dick Smith, Mighty Ape, Matt Blatt, and Brosa, alongside a growing range of digital services covering mobile, internet, energy, insurance, finance, and travel.
As a digital-first retailer operating entirely online, Kogan processes millions of card-not-present transactions every year. While ecommerce provides convenience and accessibility for customers, it also creates an environment where fraudsters continuously develop new techniques to exploit online payment systems.
Maintaining a balance between minimizing fraud and ensuring a frictionless shopping experience has become increasingly important as transaction volumes continue to grow.
Moving Beyond Traditional Fraud Prevention
For Kogan, fraud management was never simply about blocking suspicious transactions.
Every declined legitimate order represents lost revenue, reduced customer satisfaction, and the possibility that shoppers may never return. At the same time, approving fraudulent transactions exposes the business to chargebacks, financial losses, and operational inefficiencies.
The company also faced growing challenges related to policy abuse, including repeated promotional misuse, serial return abuse, subscription-related chargebacks, and customers exploiting company policies in ways that negatively affected profitability.
Many of these activities remained difficult to detect using traditional fraud management tools because they often involved seemingly legitimate customer accounts rather than stolen payment credentials.
In addition, manual chargeback investigations required significant internal resources while delivering inconsistent results.
“We wanted a solution that could truly perform without impacting customer experience,” said Rohan Dhaygude, Deputy CFO at Kogan.com.
Choosing an AI-Driven Fraud Intelligence Platform
To address these challenges, Kogan partnered with Riskified, selecting the company’s fraud prevention platform for its combination of Chargeback Guarantee, advanced machine learning capabilities, and identity-based risk intelligence.
Unlike traditional rule-based fraud systems, Riskified evaluates every transaction using artificial intelligence models trained on vast amounts of ecommerce data. These models analyze behavioral patterns, device intelligence, payment characteristics, purchasing history, and customer identity signals to distinguish legitimate shoppers from fraudulent actors in real time.
This approach enables merchants to approve more genuine customers while automatically identifying high-risk transactions before they result in financial losses.
For Kogan, implementing Riskified represented a strategic shift toward smarter, data-driven decision making across the entire ecommerce journey.
Deeper Customer Insights Through Identity Intelligence
A major advantage of the partnership was Kogan’s adoption of Riskified’s Identity Engine and Identity Explore capabilities.
Rather than evaluating transactions in isolation, these technologies build a comprehensive understanding of customer identities across multiple shopping sessions and devices.
This deeper visibility enabled Kogan to identify:
- Repeat policy abusers
- Promotional code misuse
- Subscription abuse
- Customer purchasing behavior
- Individual customer profitability
- Fraud networks operating across multiple accounts
Enhanced device intelligence and behavioral analytics also improved Riskified’s ability to recognize fraudulent users while minimizing unnecessary declines for legitimate customers.
The result was a more accurate fraud detection process that reduced friction for honest shoppers while strengthening protection against increasingly sophisticated fraud schemes.
Machine Learning Optimizes Every Transaction
Riskified’s artificial intelligence models continuously learn from Kogan’s transaction history, adapting to evolving customer behavior and emerging fraud techniques.
As new purchasing patterns develop, the platform automatically refines its decision-making models without requiring extensive manual rule updates.
This continuous optimization proved particularly valuable for:
- High-value purchases
- First-time shoppers
- Seasonal shopping peaks
- Promotional campaigns
- Large ecommerce events
Instead of relying on static fraud rules, Kogan benefits from a system that evolves alongside its business, improving approval accuracy while maintaining strong fraud protection.
Simplifying Chargeback Management
Chargebacks remain one of the most costly operational challenges for online retailers.
Beyond direct financial losses, chargebacks often require extensive documentation, manual investigation, customer communication, and dispute resolution.
Riskified’s Chargeback Guarantee significantly reduced this burden.
Under the guarantee model, Riskified assumes financial responsibility for approved fraudulent transactions, aligning its incentives directly with Kogan’s business objectives.
Combined with automated dispute management capabilities, the platform helped reduce manual reviews, improve dispute success rates, and maintain chargeback ratios below AusPayNet thresholds.
This allowed Kogan’s internal teams to shift their focus from administrative fraud management toward higher-value strategic initiatives.
Delivering Measurable Business Results
Since implementing Riskified’s platform, Kogan has achieved measurable improvements across multiple business metrics.
Among the most significant outcomes were:
- Approval rates exceeding 98%, even across higher-risk and higher-value transactions.
- Approximately $1.5 million in annual savings through improved identification of serial policy abuse and promotional misuse.
- Reduced manual fraud reviews and chargeback administration, lowering operational complexity.
- Greater confidence to approve legitimate customer orders while minimizing fraud exposure.
- Improved customer satisfaction through a smoother checkout experience with fewer false declines.
These results demonstrate that effective fraud prevention does not have to come at the expense of customer experience.
Instead, intelligent risk management can simultaneously strengthen security, increase revenue capture, and improve operational efficiency.
A Shared Commitment to Ecommerce Growth
According to Kogan, one of the most valuable aspects of the partnership has been Riskified’s accountability for its fraud decisions.
“Riskified stands behind its decisions, creating a strong alignment of incentives and giving us confidence to approve more legitimate orders while reducing fraud exposure,” said Rohan Dhaygude.
This confidence has enabled Kogan to focus on business growth rather than constantly balancing fraud risks against revenue opportunities.
Riskified also views the partnership as an example of how ecommerce fraud prevention has evolved beyond simply identifying suspicious activity.
“What stood out with Kogan is how quickly they moved from simply identifying risk to understanding customer intent,” said Aviram Ganor, General Manager of EMEA & APAC at Riskified. “That deeper understanding allows them to confidently approve more legitimate customers instead of taking an overly cautious approach, creating a better shopping experience while supporting long-term business growth.”
Ready for Peak Shopping Seasons
As ecommerce activity continues to increase during major retail events such as Black Friday, Cyber Monday, and the holiday shopping season, fraud attempts typically rise alongside legitimate customer demand.
Riskified’s scalable AI platform allows Kogan to maintain consistent fraud protection during these high-volume periods without requiring proportional increases in manual review resources.
This scalability enables the retailer to process growing transaction volumes efficiently while maintaining customer satisfaction and operational performance.
Rather than adding complexity as the business expands, Riskified’s automation helps Kogan continue growing with confidence.
Transforming Fraud Prevention into a Competitive Advantage
The partnership between Riskified and Kogan demonstrates how artificial intelligence is reshaping ecommerce fraud prevention.
Instead of treating fraud management as a necessary operational expense, businesses can leverage intelligent risk platforms to improve customer experiences, increase transaction approvals, reduce operational costs, and uncover valuable insights into customer behavior.
By combining AI-powered fraud detection, identity intelligence, automated chargeback management, and continuous machine learning, Riskified has helped Kogan build a more resilient ecommerce operation capable of supporting long-term growth.
As online retail continues to evolve, solutions that accurately distinguish legitimate customers from fraudulent activity will play an increasingly important role in helping merchants maximize revenue while protecting both their businesses and their customers. Through its partnership with Riskified, Kogan has demonstrated that effective fraud prevention and exceptional customer experience can go hand in hand, setting a strong foundation for continued ecommerce success.
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