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CASE STUDY JAGEX

Beating Fraud While Boosting Sales Is No Game for Jagex

SITUATION time and programming resources that we wanted to devote to our For more than a decade, Jagex games.” Dave became convinced has been a leading online game they needed help from outside developer with a global reputation fraud prevention experts. “We for creating hugely popular, free- realized our internal system was to-play games. The company has not the long-term solution. Our developed and self-published rejection rate was too high and online titles, including RuneScape, implementing changes to respond the Guinness World Record-holding to new attacks was too awkward.” “Most Popular Free Multi-player Online Game.” With over 480 SOLUTION Kount offered staff, Jagex currently stands as Dave began with a Google search, us something other the largest independent games and came up with a substantial list developer and publisher in the UK. of candidates. After interviewing companies couldn’t: In 2009, the company started multiple local companies and the ability to write our using an internally-developed viewing demos from five finalists, fraud prevention solution. But Jagex chose Kount. “One of the own custom rules that fast-changing fraud tactics, high deciding factors was how easy apply to our unique rejection rates, and increasing Kount makes it to rapidly write and competition for in-house implement custom rules to defeat situation. I didn’t have development resources caused new fraud tactics.” Dave Parrott, Fraud Manager at to buy someone else’s “Integration took about 2 weeks,” Jagex, to seek a solution that would recalls Dave. “It was quite simple, pre-packaged sets. allow him to rapidly respond to really. At first, we had the Kount fraud, while reducing decline rates. Further, the Kount system merely replicating the “In 2009, we were hit with a old system. But then we started system is easy to round of fraud attacks,” says using Kount’s easy rule writing to Dave. “Fraudsters would use make fine-grained modifications integrate and set stolen credit cards to buy paid to quickly stop new fraud attacks. up, so I could use memberships—which let them Next, we put Kount to work earn virtual currency at a much reducing our rejection rate. All the what I already had faster rate—so they could then data I was seeing suggested we in place...Quickly and sell this virtual currency for real were missing out on sales...That money. It’s called Gold Farming. our rejection rate was too high.” intelligently. We implemented new rules to Leveraging the Kount Score stop the fraud, but it left us with functionality, Dave was able to Dave Parrott a high rejection rate. Then in 2011, quickly and easily write additional Fraud Manager the Gold Farmers attacked us with rules that cut their rejection rate everything they had. This took a Jagex by 50% with no increase in lot of effort to combat, diverting fraudulent charges.

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In fact, even with the lower discontinue front-end screening rejection rate, Jagex was still measures that were previously able to hold their chargeback necessary. “We turned off 3D rate at around 0.2%. “Altogether, Secure and we saw no increase that’s equals almost 1% in fraud,” says Dave. “That will more net credit card revenue save us hundreds of thousands of each year,” notes Dave. pounds in expense each year.” Kount also helped Jagex improve In the coming months, Jagex revenues in other areas. “After we plans on rewriting many of the implemented Kount, our conversion rules in the Kount system to take rate on longer-term membership full advantage of all of Kount’s subscriptions increased 3% to capabilities (instead of just having 4%,” notes Dave. What’s more, it mimic their old system). “I expect with Kount protecting their that update will cut the rejection back end, Jagex was able to rate in half again,” says Dave.

BOOST SALES, BEAT FRAUD Kount can accept more orders from Kount helps online businesses more people in more places than boost sales by reducing fraud and ever before. Kount is a turnkey allowing them to accept more fraud solution that is easy-to- orders. Kount’s all-in-one, SaaS implement and easy-to-use. platform is designed for merchants Kount’s proprietary technology has operating in card-not-present reviewed billions of transactions environments and the payment and provides maximum protection service providers that support for some of the world’s best-known them, simplifying fraud detection brands. For more information about and dramatically improving bottom Kount, please visit www.kount.com line profitability. Companies using