New fraud attack index reports increased abuse

Oct 16, 2019
Written by wpengine

A leading e-commerce fraud prevention company, Forter, has issued a downloadable report outlining new trends with the crime.

The Fraud Attack Index reports that fraud is evolving beyond the point-of-sale to accounts such as loyalty programs and abuse of return policies. It urges retailers of all sizes to implement more robust detection where possible beyond chargebacks and credit cards to detect and communicate this growing crime with customers.

Forter quoted the following percentage increases in certain types of online fraud:

  • Fraud in “buy online, return in-store” programs increased 23% in the past year
  • Fraud in loyalty programs is up 89%. Fraudsters transfer funds into accounts from their victims’ legitimate accounts.
  • The total dollar amount in online fraud has increased 12%
  • The crime has increased 23% in “buy online, pickup in-store” accounts while coupon abuse has seen a 10% increase in the past year.

Mid-to-large retailers with digital goods and mobile commerce capability spend $3.40 in fees, interest, merchandise replacement and redistribution per dollar of fraud the merchant is liable for, according to the report by Lexis/Nexis Risk Solutions.

Go here to download the report.

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