Consumer electronics brand Skullcandy has shared improvements to its fraud prevention, in part due to its work with technology company Riskified.
Skullcandy was “concerned about lost revenue and customer service inquiries generated by shoppers whose non-fraudulent orders were declined and then canceled,” according to an announcement from Riskified detailing the companies’ work together.
Zach Belles, director of IT at Skullcandy, said in a statement that the retailer accessed Riskified through the Shopify app. Skullcandy largely sells headphones, ear buds and speakers.
Skullcandy is No. 617 in the Top 2000 Database. The database ranks and tracks North America’s largest online retailers by their annual ecommerce sales and more.
More than 10 retailers in the Top 2000 use Riskified for payment security and fraud prevention. Those retailers generated more than $1 billion in combined 2025 ecommerce sales.
How Skullcandy worked with Riskified on fraud prevention
Working with Riskified, Skullcandy ecommerce and IT teams changed how they approach potentially fraudulent orders, according to the announcement.
The retailer’s teams added a secondary review layer for specific declined transactions. The companies did not specify the types that triggered an extra review.
Riskified said it “recalibrated” Skullcandy’s thresholds “to increase approvals, closely tracking decline rates alongside chargeback performance with the goal of minimizing declines.”
The rate of transactions that Skullcandy declined on the basis of fraud prevention declined to as low as about 0.1%, according to the companies. At the same time, customer support requests related to false positives decreased. False positives refer to consumers being mistakenly identified as potentially fraudulent actors during a transaction. As a result, Skullcandy said its approved revenue quadrupled month over month after making the change.
Over the course of 12 months, including Q4’s holiday-season peak, Skullcandy said it kept losses to fraud “negligible.” It said it maintained low chargeback rates averaging about 0.06% during the 12-month period.
Belles said the Riskified made managing Skullcandy’s fraud strategy and monitoring performance “easy.”
Riskified integration with Shopify
In mid-March, Riskified announced a new feature, Dispute Resolve, for Shopify.
Riskified said it designed the offering for Shopify to improve “the often-complex, highly manual chargeback management process.” It said the offering enables Shopify merchants to “recover revenue” more efficiently and “with less manual effort.”
Dispute Resolve uses a real-time dashboard that automatically syncs with payment gateways, Riskified said. It uses what Riskified called “an AI-driven Compelling Evidence Editor that auto-populates case data into customized templates, reducing the time spent preparing a dispute from over thirty minutes to just five minutes.”
Riskified noted two new tools for Shopify merchants:
- Chargeback Guarantee. Riskified said this allows merchants to safely approve more orders.
- Policy Protect. The company said this “shields brands” from the rising costs of “promotion abuse, unauthorized reseller abuse, as well as refund claim and return abuse.”
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