productanalytics

A Well-intentioned Cashback Program Caused an Increase in Fraud—Here’s What Happened

The article discusses an A/B test conducted to evaluate the impact of faster cashback payments on user purchasing behavior. While aimed at increasing purchases, the strategy inadvertently led to heightened fraud, with users manipulating the system for cashback. The experience highlighted the importance of considering exploitation risks in designing reward programs.

Read MoreA Well-intentioned Cashback Program Caused an Increase in Fraud—Here’s What Happened