How Omnichannel Shopping is Increasing Fraud Threat
For ecommerce and omnichannel sellers, the threat – and cost – of fraud continues to climb. The combination of cyber criminals and endless consumer data breaches are the main drivers behind this increase. And the fraud itself is more complex than ever.
Over the last several years, fraud at three stages (shipping fraud, billing fraud and shopping fraud) in the payments workflow has jumped more than 30 percent. A recent report by Experian, 2017 E-Commerce Fraud Report, shows that shipping fraud alone has increased by 37 percent; this is the point at which scammers arrange for stolen goods to arrive at their address for quick reshipping. Billing fraud, which involves an unwitting consumer’s stolen data being used to buy items for resale, reached 34 percent.
Fraud Costs Merchants Money
This increase in fraud over the last few years is expensive. Initially, it …