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LEGO’s Building Blocks to Successful Holiday Fraud Prevention

As Black Friday and Cyber Monday quickly approach, Whitepages Pro is talking to fraud managers at major online retailers who have been through it all before. The fraud team of LEGO was first up in our webinar series. Watch the replay here, then sign up now to hear firsthand how Staples and Urban Outfitters fight fraud.

For hundreds of thousands of children and adults around the globe, the LEGO brand is almost synonymous with the holiday season—so it’s no surprise to hear that 70% of LEGO’s volume comes in the fourth quarter. For Thor Magnussen, Head of Fraud Prevention for the Americas at LEGO, the holiday season means striking a balance between stopping fraudulent orders and getting LEGO kits to customers in a timely manner.

On top of the volume increase, Thor and his team must also manage the issues that come with releasing popular limited editions that can get scooped up for resale on sites like eBay. He talked about how they’re trying to protect the end-user—they don’t want to be a business opportunity for people. They’re here for the adults and children that love the experience—not resellers.

Watch a replay of the webinar to learn the specific ways Thor helps LEGO meet their unique challenges, set rules that serve their customers, and work together as a global team.

During the webinar, Thor covers how they:

  • Manage policy violations, including resellers and freight forwarding. Along with setting rules to catch resellers, he writes rules that block all freight forwarders, which is where most of LEGO’s chargebacks historically come from.
  • Understand LEGO’s customers. With a wide customer base of LEGO enthusiasts, Thor is able to write positive rules that reward long-time customers. Some of their customers spend $50K or $60K a year, so their customer service team knows them by name. It’s important to get their orders through quickly.
  • Look for the data that’s not there. Thor cautions companies not to rely on a single rule, like device ID, to trigger a review. Plugins can mask device ID, which is why he recommends companies write additional rules triggering reviews for missing data.
  • Work as a team. Originally, LEGO’s U.S. and European fraud teams functioned as two separate modules. He realized that they could be monitoring review queues essentially around the clock if they functioned as a complete team. To foster global collaboration, the two teams flew out for a week long face-to-face training session to get to know each other in person and share local knowledge.
  • Work across departments. Thor also recommends opening up lines of communication between other customer-facing departments like the customer service and social media teams, who can often give early indications if someone is bragging on Twitter about getting free goods or ranting about delayed order.

This 30-minute webinar is packed with great information and advice for retailers who want to prevent fraud during Black Friday, Cyber Monday, and beyond. Be sure to watch the replay for the complete conversation with Thor Magnussen.

About our guest speaker

Thor Magnussen | LEGO
Head of Fraud Prevention for the Americas
Thor is the head of Fraud Prevention for the Americas at LEGO, this includes the shop.LEGO.com, 90+ LEGO retail stores and LEGO Education. His responsibilities include chargeback processing and data analysis, automated rules engine management, manual review screening and detection of internal & external theft/policy abuse.

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