Battling Consumer Fraud Extensively: Delivery Hero's Approach

Battling Consumer Fraud Extensively: Delivery Hero's Approach

In the fast-paced world of the gig economy, where delivery services strive to bring groceries and household items to customers in record time, the threat of fraud looms large. Delivery Hero, a global leader in quick commerce, has teamed up with Incognia, an identity solutions provider, to tackle this very issue.

Incognia has been a true partner to Delivery Hero, collaborating closely with their team to fine-tune detection strategies and maximize results. The company is committed to solving all major fraud types for multi-sided gig economy platforms, ensuring brands are better protected and consumer data is safe.

Incognia's solution, which leverages advanced technologies such as location intelligence, device fingerprinting, and AI, helps platforms like Delivery Hero and Grubhub detect and prevent various types of fraud. This includes spoofing, fake accounts, refund abuse, and account sharing. The approach allows platforms to recognize users consistently across devices, even after factory resets or tampering attempts, making it difficult for fraudsters to reuse devices or accounts to commit fraud repeatedly.

A key feature of Incognia’s solution is its Environment Linked to Fraud (ELF) system, which flags devices linked to prior fraudulent activity, preventing recurring fraud even after attempts to reset or disguise devices. This system has been shown to reduce suspicious activity by 64% for major platforms.

For Delivery Hero specifically, Incognia’s platform has delivered a 7X return on investment and significant fraud cost savings by enabling precise risk intelligence that cuts fraud losses dramatically. After global testing, multiple Delivery Hero brands partnered with Incognia to tackle consumer fraud at scale, improving both security and user experience simultaneously.

From the user experience perspective, Incognia’s technology reduces false positives and friction in the onboarding process. Platforms that used Incognia saw reductions in new user abandonment rates by increasing the automatic approval rate of legitimate new users without compromising security. This balance helps gig platforms maintain seamless user experiences while effectively cracking down on fraud and abuse.

Incognia's next-generation ID solution combines device identity, tampering detection, and advanced location intelligence to deliver a robust real-time risk signal. By flagging risky behaviours early, Incognia's ID solution prevents future losses and protects the platform's trusted users.

Philipp Merker, director global fintech fraud at Berlin-based Delivery Hero, noted that Incognia's deep understanding of delivery fraud had a significant impact on their fraud prevention strategy. The partnership aims to detect and prevent fraud on Delivery Hero's platforms, with the company having deployed Incognia's solution at six of its brands.

Delivery Hero, a pioneer in quick commerce, operates in around 70 countries across Asia, Europe, Latin America, the Middle East, and Africa. With Incognia's help, they aim to continue delivering goods to customers quickly and securely, while minimizing financial losses and protecting platform integrity without impairing the convenience that gig users expect.

According to Incognia's "Gig Economy Fraud Report," fraud is a significant issue for gig-economy platforms. However, with partners like Incognia, these challenges can be met head-on, ensuring a safer and more trustworthy environment for both businesses and consumers.

[1] Incognia. (2021). Gig Economy Fraud Report. Retrieved from https://incognia.com/resources/gig-economy-fraud-report/ [2] Incognia. (2021). Delivery Hero Achieves a Seven-Fold Return on Investment with Incognia's Fraud Prevention Signal. Retrieved from https://incognia.com/blog/delivery-hero-achieves-a-seven-fold-return-on-investment-with-incognias-fraud-prevention-signal/ [3] Delivery Hero. (2021). Delivery Hero Partners with Incognia to Tackle Consumer Fraud at Scale. Retrieved from https://deliveryhero.com/news/delivery-hero-partners-with-incognia-to-tackle-consumer-fraud-at-scale/

1. In the collaboration between Delivery Hero and Incognia, the focus extends beyond cybersecurity to encompass finance, as they strive to minimize financial losses caused by fraud in the quick commerce business.
2. As technology advancements drive the growth of the gig economy, businesses like Delivery Hero leverage solutions such as Incognia, which offer advanced technologies like location intelligence, device fingerprinting, and AI, to ensure both security and competitive edge in finance and technology arenas.

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