E-Commerce Fraud Risk Was Up 80 Percent During Holiday Season
By: Multichannel Merchant March 16, 2017
Fraud prevention technology provider Forter has published its 2017 Fraud Attack Index, in conjunction with the Merchant Risk Council (MRC). It detailed the rate at which e-commerce fraud attacks increased throughout traditional retail verticals and provided an in-depth look at the reasons behind the year-over-year changes.
One of the key findings was a 79-percent increase in the risk of fraud for domestic holiday orders when compared with 2015.
To learn more about the report and its findings, Multichannel Merchant reached out to Forter CEO Michael Reitblat.
MCM: What were the drivers of the 79-percent spike in fraud risk for holiday 2016?
Michael Reitblat: It was partly friendly fraud, and partly fraudsters using the holiday rush to hide among the good customers. Friendly fraud is becoming a serious problem with serial offenders sharing tips online. Fraudsters know that teams relying on manual reviews are burdened in the holidays especially, struggling to keep up with the flood of orders; they take advantage of it, hoping to slip through.
MCM: How is the fraud rate determined?
Michael Reitblat: Itís calculated including both successful fraud (resulting in chargebacks) and unsuccessful fraud that was blocked.