According to the UK Finance report, £783.8 million were lost to fraudsters through payment cards, remote banking, and cheques in 2020 alone. Moreover, banks and credit cards firms have stopped £1.6 billion in unauthorized frauds during 2020. And that’s only in the UK! Statistics indicate the end of November and December are highlighted with shopping fraud. eCommerce experienced a 41% attack rate increase in Q1 2021.
Everyone is looking for the deal of their lifetime on Black Friday. The scammers included. Security has been one of the crucial issues you need to worry about and prepare for in eCommerce, as potential attacks may compromise your customers confidential data and make their confidence plummet. Make security protecting your shoppers data and maintaining reliability of the store one of the key priorities. Cybercriminals are already preparing for one of their busiest seasons of the year!
eCommerce fraud prevention trends you need to monitor before holidays.
According to Juniper Research, eCommerce is on track to lose over $20 billion to fraudsters in 2021. If suffering a data breach or experiencing financial loss is not an option, you need to take precautions and stay bulletproof. What are the fraud trends to avoid this year?
Account takeover fraud.
Big sale seasons and other major eCommerce events are perfect storms for scammers to orchestrate their thing. With account takeovers, fake account registrations are the few to start from. As many other ways of cybercrime, takeovers increased during a Covid-19 pandemic. The phone traffic levels on eCommerce platforms continued to be sky-high in 2021.
Recent research shows that 22% of US shoppers’ suffered account takeovers. Moreover, the number of account takeovers increased by 72% this year.
eCommerce merchants have a responsibility to secure their shoppers’ accounts. Two-step authentication is one of the first things to consider. Another step is integrating biometric authentication (such as iris, fingerprint, or facial recognition scans). Biometric recognition is a faster way to reach users’ accounts especially when on a responsive site. Third-party secure authentication (such as log in with Google, Facebook, or Apple account) is an option too.
Watch out for bots; they are getting smarter.
The early bots could not solve captcha puzzles; however, according to recent findings, 2% of fake accounts are set up by bots who solved captcha. These algorithms operate more intelligently as years go by.
Merchants must take such a threat seriously and take action to prevent before-mentioned account takeovers. eCommerce owners can do it by adopting machine learning fraud detection.
Don't test your users' patience at the cart: user experience is still the priority.
Real online purchasers don’t want to deal with fraud and scams. However, they also don’t want to deal with numerous authentications during their checkout. Taking this into account false negatives are to be avoided at all costs. Customers don’t care for extra security measures before they experience the loss of data or funds. Having said that, declining a real customer’s login will most likely end up with the abandoned cart.
User experience and fraud prevention can work together, and retailers don’t need to choose one of them. Many security solutions can be integrated seamlessly to eCommerce platforms. Just ask for expert support.
Prepare to battle and take care of online carts.
Our global new normal reality is still full of abuse, fraud, and scams. Even if you do everything right, there’s a phony deal’s scammer’s offer waiting for its victim during the busiest time of the year. Your brand’s name can be exposed for risk. Preparations are vital for every retailer now more than ever.
Businesses need to ensure and live up to their fraud solutions to today’s digital world in order to make a balance between fraud defence and user experience.
Would you like to discuss the security of your site, but don’t know where to start? Talk to one of our experts!