But blunt and aggressive fraud prevention methods could drive customers away.
This article states between Q2 2018 and Q2 2019, ecommerce fraud has risen by 12% the dollar amount. Loyalty program frauds have grown by 89% with fraudsters exploiting weak prevention measures and attaining success without needing to gather as much information.
According to the 2019 Fraud Attack Index by Forter, other methods of fraud include Buy Online Return In-Store and Buy Online Pick Up In-Store, both of which are up 23%. Identity and instrument manipulation increased by 30% and 15%, respectively.
As per Forter, the rise in ecommerce fraud could be attributed to retailers’ efforts to decrease friction in the checkout process to create better customer experiences. Hence, retailers must build smarter fraud prevention systems that factor the relative risk of transactions.
[3 minute read]