Note: This document is an excerpt translation of the original Japanese document and is only for reference purposes.

In the event of any discrepancy between this translated

document and the original Japanese document, the latter shall prevail.
 • •

• •

•
 Hobby Food and health food PC and tablet Bank

Furniture
Cosmetics and hair care Apparel and sports Hosting and DIY
Travel Ticket

Video and audio

equipment Online shopping malls, MVNO, and others NFT Game

*1 TOKYO SHOKO RESEARCH, LTD., “Survey on the number of EC sites in Japan introducing paid fraud detection service,” (as of the end of May 2021)
*2 Only selected companies with permission to be listed are included. As of end of April, 2022.
（C）Cacco Inc. All Rights Reserved. 4
Ecommerce Enabler/ Shopping Cart

Payment Gateway / PSP

（C）Cacco Inc. All Rights Reserved. 5

1 2 3 4 5

Chargeback Promotion Abuse Resale Fraud Sample Abuse COD Fraud

Purchases made with Promotion abuse by Bulk purchases, Unauthorized acquisition Refusal to receive cash
someone else's credit users creating duplicate hoarding, and high and resale of samples that on delivery orders. It
card information. Both accounts resale of products. are limited to a first time occurs with the failure of
the product and money Claims from the original or limited quantity a resale, and the loss of
are uncollected due to a purchasers and damage sales opportunities and,
chargeback request from to the brand image due Increased return
the credit card company. to resale also occur. shipping costs.

6 7 8 9 10
Increased Lost Sales
Affiliate Fraud Spam Order Point Abuse
Monitoring Opportunity
Nuisance behavior with Fraudulent point Increased man-hours Opportunity losses such as
Generation of
repeated orders and acquisition by repeatedly spent responding to concerns about basket
unauthorized affiliate
cancellations, with no returning or canceling fraud by in-house drops due to 3D Secure,
commissions due to self-
intention to purchase orders in order to earn personnel who visually suspension of foreign-
made efforts. Inability to
points without check orders for issued cards, and capped
measure correct CVRs
purchasing the products suspicious items amounts.
and negative impact on
sales promotions.
Chargeback
Flow of chargeback from fraudulent card use
Unauthorized user Cardholder Merchant

The Fraudster Fraudster orders The cardholder The cardholder The Card company
obtains card and receives the notice the false files a claim to the chargeback the E-
detail illegally products transaction card company Commerce

Approximately 2-3 months until the fraud is discovered

Promotion Abuse
Flow of promotion abuse
Unauthorized User Customer Merchant

The Fraudster make The honest customer

The fraudster saw the The fraudster order cannot claim the The EC company loses
another fake account
promotion and the discounted or promotion because the customer trust and
to claim and order the quota has been used by revenue
claimed it promoted product
promoted product the fraudster

?
?

The effect is instantaneous, and the promotion is not effective

Resale Fraud
Flow of fraudulent reselling activities
Unauthorized User Customer Merchant

The fraudster buy The fraudster sets up People buys products

The fraudster receives The E-commerce suffered
discounted/ limited an online store to sell from the fraudster at an
the product inflated price
customer trust issue
products in bulk the product

The participating merchant will lose out customers and customers will have to
buy with the inflated price

10
•
•
•

•
•
 Benefit 01 Benefit 02 Benefit 03 Benefit 04

Real-time Automation of Massive Professionals x AI

V
Fraud Detection V
Monitoring Work V Impact
Economic V
Examinations

• Real-time analysis of • Able to reduce • Reduce the amount of • Incorporating specialized

multiple screening factors monitoring operation fraudulent damage and fraud consultants and
are combined to check workload in each increase Revenue machine learning/AI rule
for possible fraudulent platform • Solid Fraud system costs tuning, the our system
orders/ • Standardizes operations a fortune to build, but can responds & adapt
transactions prior to regardless of skill or our system can be quickly to new
actions(like shipment) order volume. installed for fraudulent tactics.
$249/month (lowest
price in the industry)
O-PLUX Case Studies - Summary
JINS (Glasses Retailer) DIY Factory (Online DIY Shop) PetGo (Pet Supplies Store)

The Issue The Issue The Issue

Fraudulent orders and the number of As transactions reach 1,500 per day, The client detects an increasing
chargebacks have skyrocketed with the fraudulent orders and chargeback costs number of fraudulent orders with
increase in orders done through the cause great financial burden and varying complexity, about 5,000 cases
client’s e-commerce site require significant man-hours per month, using their own system

Engagement ROI Engagement ROI Engagement ROI

O-PLUX solution was implemented Fraudulent orders, which were During the trial phase, O-PLUX was
within 2 months and reduced the previously at an average of ~100 cases able to detect cases which went
client’s chargeback costs by 80% per month, have been reduced to unnoticed by the client’s internal
within the first four months of usage almost zero system

“The API collaboration went smoothly and “The number of fraudulent orders decreased “I think that the fact that O-PLUX detected
was very helpful.. We feel that the significant rapidly from the first month of fraudulent orders that went unnoticed
reduction in chargebacks is a result of the implementation…I feel that we have become because our company's system had a lot of
implementation.” an `EC site' that is not targeted by people fraud detection logic built in was more than
-Dai Sato, IT Digital Department who repeatedly place malicious orders.” we expected.”
-Niko Yokoyama, E-Commerce Department -Fumihiko Koide, Director
O-PLUX Case Studies - JINS
JINS

Pre-Implementation of O-PLUX Post-Implementation of O-PLUX

Fraudulent orders and the number of O-PLUX solution was implemented
chargebacks have skyrocketed with the within 2 months and reduced the
increase in orders done through the client’s chargeback costs by 80%
client’s e-commerce site within the first 4 months of usage

Coｍpany Jins Co., Ltd.

Credit Card Credit Card

Japan’s #1 Eyeglass Transactions Transactions 80%
Business Overview (50%) (50%)
Brand Reduction
All All
Chargeback Chargeback
Year Established 2018 Transactions Transactions

“The API collaboration went smoothly and was

US$ 351 million
Annual Sales very helpful.. We feel that the significant
(Aug 2022)
reduction in chargebacks is a result of the
implementation.”
Employees 2,118 -Dai Sato, IT Digital Department
O-PLUX Case Studies – DIY Factory
DIY Factory

Pre-Implementation of O-PLUX Post-Implementation of O-PLUX

The client receives ~1,500 transactions After unsuccessful results of installing
per day and manually checks for 3D Secure initially, the client
potential fraud, which require lengthy implemented O-PLUX which was able
man-hours and does not stop cases to prevent fraudulent orders and
accurately reduce chargeback costs to almost zero

Checked manually but

only 50% are stopped Fully automated
successfully leading transaction
to: monitoring
Coｍpany Daito Co., Ltd. Uncollected All
All payments Fraudulent orders
Transactions Transactions
have decreased and
Chargeback costs
chargeback amounts
Japan’s largest online
Business Overview Lengthy man-hours reduced to almost
DIY shop
Fraudulent for manual zero
checking
Orders

Year Established 1952

Annual Sales
US$ 44 million “The number of fraudulent orders decreased rapidly from the
(Dec 2022) first month of implementation…I feel that we have become an
`EC site' that is not targeted by people who repeatedly place
malicious orders.”
Employees 26
-Niko Yokoyama, E-Commerce Department
O-PLUX Case Studies – How Fraud is reduced

How Fraud is reduced after O-PLUX implementation

700

600

500

400

300

200

100

0
Able to reduce total cost significantly if you use Cacco’s service compared to in-house operation

In-house FDS Competitor’s FDS Cacco’s FDS

Able to reduce total cost!

■ Service fee
Fraud Detection System • Cacco’s service fee is cheapest compared to other
operation costs company
(infrastructure, software, etc.) ■ Internal labor cost
Internal labor costs/Fraud
• Increased transactions do not increase monitoring
damage cost can be reduced
man-hours due to economies of scale
Internal labor cost ■ Fraud Damage cost
for anti-fraud measures • High detection accuracy reduces the amount of
(2~3 persons) fraudulent damage
System service fee

Internal labor cost

for anti-fraud measures Cacco Service fee
(2~1 persons) Internal labor cost
Fraud Damage Cost for anti-fraud measures
(0~0.5 persons)
Fraud Damage Cost
Fraud Damage Cost
Cacco provides a low-cost and easily deployable option, making it accessible not only for large enterprises but also
for SMEs, thanks to its industry-leading price

Individual FDS company Payment Gateway FDS Cacco

• Transaction-based billing, making

• Most solutions are for enterprise • Low cost/short implementation
the service more expensive than
companies, and it leads higher price time
Overview and longer implementation time than
Cacco
• Full coverage of login/payment
• Lower detection accuracy due to
Cacco fraud prevention
fewer inputs handled for detection

Service
• Provides total anti-fraud solutions • No solution to prevent login fraud • Provides total anti-fraud solutions
Coverage

• Minimum • Minimum
Cost 1,000~2,000 USD per month 1,000~ USD per month • Start from 249 USD
Evalu
ation
Deployment • 8~12 weeks for implementation • 4 weeks for implementation •4 weeks for implementation

• Accuracy is lower because only

Accuracy • 95%~
payment information is used.
• 95%~
 Amount of fraud damage (chargeback damage)
Large size company Small-Mid size company
(Total transaction amount: 120M USD) (Total transaction amount: 6M USD)

Before

300K USD 15K USD

Annual savings of
Annual savings of 13.2K USD
After 264K USD per year

36K USD 1.8K USD

O-PLUX uses various detection logics to analyze order information in detail, which lead high accurate detection
 Monthly Fee
Initial Cost
Transaction Size Price

～500/month 249 USD

～1,000/month 299 USD

0 USD ～3,000/month 549 USD

～5,000/month 799 USD

5,001~/month 799 USD

+0.07 USD/trx

（C）Cacco Inc. All Rights Reserved.