Ecommerce fraud increases as consumers increasingly migrate to online shopping

Ecommerce fraud increases as consumers increasingly migrate to online shopping
22.03.2019 07:34 am

Ecommerce fraud increases as consumers increasingly migrate to online shopping

Security , Fraud Detection

Figures from the annual BRC Retail Crime Survey out today report an exponential increase in ecommerce fraud, specifically fraudulent Card Not Present (CNP) refunds. As consumers shift away from spending on the high street and adopt a proclivity for online shopping, ecommerce fraud is growing at twice the rate of ecommerce sales. It’s expected that retailers will lose around US$130 billion in digital CNP fraud between now and 2023. 

To combat this risk, online retailers have spent a staggering £8 million, adopting a reactive measure rather than a proactive one. However, by investing in fraud detection and prevention solutions that verifies a user’s identity and cross-references it against fraud data before allowing transactions, merchants can curb significant losses from fraud, according to Zac Cohen, General Manager at Trulioo.

Zac comments: “A data trail is at the heart of every transaction, even the fraudulent ones. If used effectively, data can expose malicious actors, especially when verifying identities at account creation. With the rise in ecommerce fraud, the use of specific data points can create barriers that prevent criminals from gaining access to ecommerce accounts, while simultaneously authorising legitimate customers to effortlessly access their accounts. In mere seconds, smart data can be referenced, verified and used to prevent fraudulent transactions – saving online retailers time, money, and resources – while allowing legitimate customers to easily and efficiently complete a purchase.”

Zac continues: “Additionally, many online retailers are expanding into emerging markets around the world where mobile phones are proving an effective cost-efficient tool for identity verification.”

“As ecommerce continues to grow, so too does the risk and cost of fraud. Fraudsters will always go for the easiest, fastest and most lucrative payoffs and that means targeting retail sites that do not implement vigilant, vigorous practices for verifying customers and detecting fraud. In the burgeoning ecommerce landscape of today, an agile and data-centric approach to combat fraud is the need of the hour.”

Related News

Dun & Bradstreet and Encompass Announce Strategic Partnership

Dun & Bradstreet today announced a strategic partnership with encompass, a global provider of automated Know Your Customer (KYC) solutions, to help deliver world-leading... Read more »

Ambassador Susan Rice to Join the Feedzai Financial Crime and Technology Summit, Speaking On Security And Global Policy

AMB. Susan Rice, united states national security advisor (2013-2017) under President Obama, and U.S. ambassador to the united nations (2009-2013), will be interviewed by... Read more »

Atom bank select TruNarrative for next generation protection against financial crime

TruNarrative are proud to announce their latest partnership with the UK’s first bank built exclusively for mobile and... Read more »

F-Secure Security Engineering Awarded IEC 62243 Certifications

Cyber security provider F-Secure has earned two new International Electrotechnical Commission (IEC) certifications that recognize the company’s expertise in developing secure... Read more »

Verizon DBIR 2019 reveals global cybercrime trends, based on breach analysis

C-level executives – who have access to a company’s most sensitive information, are now the major focus for social engineering attacks, alerts the ... Read more »

ACH Alert Taps George Leto to Support Growing Channel Partner Division, Increased Demand for Payments Fraud Solutions

ACH Alert, an award-winning provider of electronic payments fraud prevention technology for financial institutions of all... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel