By 2023, eCommerce is expected to account for 22% of all retail sales — a 7.9% jump from 2019.
At first glance, this may not seem like a dramatic increase. However, when you look at the year-over-year trends since 2015, you’ll notice that following the pandemic, eCommerce sales are expected to continue to thrive significantly.
That’s the beauty of eCommerce platforms. Despite times of crisis, businesses can still thrive.
At the same time, this increase in eCommerce transactions brings another problem: eCommerce fraud.
There are five common types of fraud that retailers should be on the lookout for:: card testing, account takeover, interception, chargebacks, and refund fraud. How eCommerce Fraud Affects Businesses
While this term ‘eCommerce fraud’ is fairly self-explanatory, the reality is that it covers a wide range of tactics used by fraudsters to target eCommerce merchants.
Generally, brick-and-mortar stores are not strangers to fraud. But eCommerce platforms have created a whole new world of opportunities for fraudsters to take advantage of.
Stores and merchants also offer accounts to customers for a wide variety of reasons — ranging from rewards programs to the convenience of saving payment information. These accounts are another avenue for fraudsters to take advantage of, should they gain access to honest customers’ account information. eCommerce Fraud Types As previously mentioned, the nature of eCommerce transactions presents many opportunities for fraudsters to target eCommerce vendors and merchants. Here are some of the most common ways fraudsters tend to target eCommerce vendors and merchants. Card Testing Fraud With card testing fraud, the fraudster illegally obtains one or more credit card numbers. Typically, fraudsters will obtain these numbers by stealing them directly or purchasing them from certain parts of the internet.Card testing fraud starts out smaller: The fraudster will attempt smaller purchases with each card number to figure […]
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