Loyalty Fraud: Growing Problem for Retailers
Hackers and fraudulent e-commerce activities are increasingly focused on loyalty programs, as research by Forter reveals. Let’s read below to discover more about this emerging trend and see who can help you with Fidelity Payments.
Fidelity Payments& Loyalty Fraud
Forter’s Fraud Attack Index points to changes in the e-commerce space across over $140 billion transactions. According to Forter, there’s an 89% increase in loyalty fraud over the past year. So, it’s so much important for merchants to get a better idea of the evolution of this type of fraud. Otherwise, you won’t be able to fight it properly.
Apart from the mentioned increase:
- Fraud rings grew by 26% in 2018
- Collusion fraud grew 32%
- Buy online and pick up in-store (BOPIS) fraud increased 23%
- Buy online and return in-store (BORIS) fraud grew 23%
- Fraud through ID manipulation rose 30%
Fraudulent activity increased in:
- Air Travel by 61%
- Money Services by 48%
- Apparel & Accessories by 44%
- Food & Beverage by 41%
Are you an e-commerce merchant searching for secure and affordable payment-processing services in the UK? Consider working with a reliable and trustworthy payments-processor comparison company in the UK that can help you with the right merchant-services providers, including Fidelity Payments.
Make sure to apply to a true payments expert that guarantees the most honest snapshot of companies at the time of writing.
New Trend Emerging in Online Fraud
During Q2 2018 – Q2 2019, the dollar amount of e-commerce fraud rose 12%. Forter analyzed $140 billion in e-commerce transactions and found there was an 89% increase between Q2 2018 and this year.
According to Michael Reitblat, Forter CEO and co-founder, there’s a clear trend emerging in online fraud. By the way, the main problem associated with fraud is that the latter results in hefty costs for retailers.
A LexisNexis Risk Solutions report shows that each dollar of fraud costs retailers $3.13. This number is up from $2.40 in 2016. What’s more, card-not-present or CNP fraud is projected to reach $130 billion by 2023.
To sum up, retailers are raising the bar in becoming more appealing to customers through rewards and loyalty programs. Such tactic is also creating quite attractive bases for developing new methods of fraud attacks.
Author Bio: Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of merchant accounts and can help you with Fidelity Payments. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie in his backyard porch, as should all right thinking people.