Online Fraud is Expected to Double This Holiday Season
If you’re in the e-commerce industry, brace yourself for some serious fraud this holiday season. With Black Friday coming up soon, the holiday shopping rush is just beginning and it’s the prime time of attack for online fraudsters and chargebacks.
ACI Worldwide predicts that US retailers will see a 43 percent increase in online fraud this holiday season, compared to last year.
Their data is based on millions of transactions from retailers around the world. They found that adoption of EMV cards in the US is partly to blame. Fraudsters are having trouble getting away with it in-store, so they have shifted their focus online. ACI also found that the top items being targeted are relatively inexpensive such as cosmetics, cordless headphones, and sneakers since they can easily be resold on the black market or auction websites.
“Fraud is increasing at a rate nearly equal to general retail growth globally—and is exponentially increasing in the U.S., due to a seismic shift from in-store to online activity,” said Mike Braatz, chief product officer, ACI Worldwide. “And because fraudulent activity is now considered to be an everyday occurrence, consumers and merchants must take every precaution as we head into peak holiday shopping season.”
The problem is that spotting and verifying suspicious transactions is a time-consuming process for the average merchant. Every declined legitimate transaction means lost revenue, and every transaction that is manually approved means administrative time and effort. Additionally, most novice users still won’t be sure which transactions are suspicious since they won’t know exactly which red flags to look for.
Most top-tier firms have specialized fraud review teams to assess the risk of each transaction. Our partner, Fraudwatch is a fraud detection software that employs the same methods as Fortune 500 companies, tapping into the same technology that larger companies utilize.
The Fraudwatch software scans each transaction and runs them through dozens of tests to detect suspicious behavior. Each transaction receives a yes/no answer. Merchants can choose to utilize the “score-only” feature, or they can opt to purchase the “chargeback guarantee” option which backs each approved transaction.
Fraudwatch offers a simple solution for merchants to monitor and prevent fraudulent activity on their e-commerce sites. With no contracts or monthly costs, just a minimal transaction fee, it may be a worthwhile investment for Black Friday and this year’s holiday season.
For more information, visit www.FraudwatchSecure.com.