Vonage Case Studies Vonage Verify API: Vinted's Solution Against Fraud in Secondhand Clothing Marketplace

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	Vonage Verify API: Vinted's Solution Against Fraud in Secondhand Clothing Marketplace Vonage

Vonage Verify API: Vinted's Solution Against Fraud in Secondhand Clothing Marketplace

Vonage

Technology Category	Cybersecurity & Privacy - Identity & Authentication Management Robots - Wheeled Robots
Applicable Industries	Retail Telecommunications
Applicable Functions	Quality Assurance
Use Cases	Fraud Detection Machine to Machine Payments
Services	System Integration
Challenge	Vinted, an online vintage retailer, was facing a significant challenge with an increase in fraudulent transactions on their site. Traditional methods of customer authentication were proving to be either ineffective or too cumbersome and unscalable. As the company grew, the simplicity of their transaction processes heightened the risk of fraudulent transactions, such as purchases made with stolen credit card information. Vinted had a security system in place that calculated user behavior and gave a score based on the probability of fraudulent usage. However, when a user was identified as fraudulent through a negative score, the only action Vinted could take was to ban the user. This approach was not efficient and Vinted needed a more frictionless action. Read More
About Customer	Vinted is a rapidly growing Lithuania-based company with 20 million members around the world. It provides a social marketplace for pre-owned clothing, allowing users to unclutter their closets and make money by selling their unwanted clothes via an easy-to-navigate online retail outlet. Sellers create listings for their clothes, chat with interested buyers, and then complete easy online transactions. Vinted merchandise spans all demographics — men, women, and children — and sellers can choose to offer discounts. The app supports 52 million listings from across the USA, UK, Germany, Austria, France, Lithuania, Poland, Czech Republic, The Netherlands, and Spain. Read More
Solution	Vinted decided to implement Vonage Verify API with two-factor authentication as a solution to their problem. This system verifies suspicious users via their phone numbers, using a fast, simple, and frictionless method of user authentication. Fraudulent users are proactively blocked from completing transactions. SMS verification was chosen as the best approach for this problem. It allows Vinted to flag suspicious behaviors at any point in the transaction by creating rules for monitoring different stages of the process. If a user triggers suspicion at any time during the process, that user is flagged and will not be able to continue the transaction until their phone number is verified. Verification only 'kicks in' for those transactions that have been flagged as suspicious. This approach gives the user the benefit of the doubt, and they are not banned unless they cannot be verified. Read More Log in to view content
Contents

Technology Category

Cybersecurity & Privacy - Identity & Authentication Management

Robots - Wheeled Robots

Applicable Industries

Retail

Telecommunications

Applicable Functions

Quality Assurance

Use Cases

Fraud Detection

Machine to Machine Payments

Services

System Integration

Challenge

Vinted, an online vintage retailer, was facing a significant challenge with an increase in fraudulent transactions on their site. Traditional methods of customer authentication were proving to be either ineffective or too cumbersome and unscalable. As the company grew, the simplicity of their transaction processes heightened the risk of fraudulent transactions, such as purchases made with stolen credit card information. Vinted had a security system in place that calculated user behavior and gave a score based on the probability of fraudulent usage. However, when a user was identified as fraudulent through a negative score, the only action Vinted could take was to ban the user. This approach was not efficient and Vinted needed a more frictionless action.

About Customer

Vinted is a rapidly growing Lithuania-based company with 20 million members around the world. It provides a social marketplace for pre-owned clothing, allowing users to unclutter their closets and make money by selling their unwanted clothes via an easy-to-navigate online retail outlet. Sellers create listings for their clothes, chat with interested buyers, and then complete easy online transactions. Vinted merchandise spans all demographics — men, women, and children — and sellers can choose to offer discounts. The app supports 52 million listings from across the USA, UK, Germany, Austria, France, Lithuania, Poland, Czech Republic, The Netherlands, and Spain.

Solution

Vinted decided to implement Vonage Verify API with two-factor authentication as a solution to their problem. This system verifies suspicious users via their phone numbers, using a fast, simple, and frictionless method of user authentication. Fraudulent users are proactively blocked from completing transactions. SMS verification was chosen as the best approach for this problem. It allows Vinted to flag suspicious behaviors at any point in the transaction by creating rules for monitoring different stages of the process. If a user triggers suspicion at any time during the process, that user is flagged and will not be able to continue the transaction until their phone number is verified. Verification only 'kicks in' for those transactions that have been flagged as suspicious. This approach gives the user the benefit of the doubt, and they are not banned unless they cannot be verified.

Impact #1	The implementation of Vonage Verify API has significantly improved Vinted's ability to detect and prevent fraudulent transactions. The system's 'pay-on-conversion' model aligns perfectly with Vinted's growth strategy, being quick, simple, and cost-effective. By proactively stopping fraudsters, more genuine customers are allowed through Vinted’s door, making the marketplace a safer environment for all parties concerned. Today, Vonage’s Verify API is an integral part of Vinted’s fraud detection engine, positioning the company to further expand its successful business.

Impact #1

The implementation of Vonage Verify API has significantly improved Vinted's ability to detect and prevent fraudulent transactions. The system's 'pay-on-conversion' model aligns perfectly with Vinted's growth strategy, being quick, simple, and cost-effective. By proactively stopping fraudsters, more genuine customers are allowed through Vinted’s door, making the marketplace a safer environment for all parties concerned. Today, Vonage’s Verify API is an integral part of Vinted’s fraud detection engine, positioning the company to further expand its successful business.

Benefit #1	30% increase in marketplace traffic after the release of its mobile app.
Benefit #2	The app supports 52 million listings from across multiple countries.
Benefit #3	Vinted has 20 million members around the world.

Benefit #1

30% increase in marketplace traffic after the release of its mobile app.

Benefit #2

The app supports 52 million listings from across multiple countries.

Benefit #3

Vinted has 20 million members around the world.

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Overview

Vonage Verify API: Vinted's Solution Against Fraud in Secondhand Clothing Marketplace

Operational Impact

Quantitative Benefit