E-Commerce Fraud Increases as Online Shopping Spikes
12 June 2020 - 10:00 by David Aiken
The triple-digit increase in the number of people placing orders via safe shopping online seen last month was good news for retailers, but also came with some compromises, chiefly related to the rise in the number of cybercriminals targeting consumers with scams.
Now a report from ACI Worldwide has revealed the extent of the problem, with not only an uptick in malicious campaigns but also a rise in the overall value extracted from victims by the attackers, according to Internet Retailing.
It is worth pointing out that it is not just shoppers who are being picked out for exploitation at the moment but also merchants making use of online marketplaces to sell their wares. This means that cybercrime is an issue for all involved and one which seems set to remain prevalent, particularly while the pandemic disrupts the marketplace and makes online shopping even more appealing.
Study spokesperson Amanda Mickleburgh said that now was the time for increased vigilance about online fraud to be encouraged, both amongst consumers and retailers. She explained that crooks were eager to piggyback on the increase in online shopping to steal private data from legitimate users and leverage this to their own nefarious ends.
Another aspect of the current rise in e-commerce is that retailers are also having to deal with more returns and refunds than usual, which in some cases can lead to confusion and delays as well as customer consternation.
Sorting the legitimate claims from those that are intended to be fraudulent is a challenge, and keeping up with the evolving threats is a costly task, yet it is one which no retailers and brands can afford to ignore. Customer satisfaction and trust are both very valuable, which makes investing in security easy to justify financially.