In case of attacks, readiness is key
In 2022, e-merchants across the globe experienced varying types of fraud attacks, with social engineering tactics like phishing, pharming, and whaling being the most common. These techniques prey on human error, aiming to deceive individuals into sharing information or clicking on links that install malware on their devices. First-party misuse, such as friendly and chargeback fraud, ranked second, followed closely by card testing and identity theft. As if these prevailing security threats weren't sufficient, online merchants have identified new fraud trends, with a notable example being fraudsters providing services that facilitate fraudulent activities for clients.With fraudsters resorting to more sophisticated strategies, it has become imperative for online retailers to enhance their prevention and countermeasures against these attacks effectively. A study emphasized that nearly three-quarters of companies planned to increase their fraud prevention budget in 2023. In 2022, Card verification number (CVN) and identity validation were the most used fraud prevention tools. Nevertheless, to bolster their fraud management strategies and protect their businesses, online merchants are increasingly prioritizing the improvement of fraud analytics and automated detection accuracy.
Fraud affects the consumer experience
If merchants have witnessed the monetary impact of cybercrime, buyers are not far behind either. In recent years, the overall proportion of victims of online shopping scams who suffered financial losses has consistently remained above 70 percent. As websites serve as the primary channel for online shopping scams, this scenario inevitably tarnishes the reputation of merchants and undermines the trust that consumers place in them.In 2022, seven out of ten global e-commerce users expressed favoring payment methods that do not share their data with merchants, while almost 60 percent were more concerned about online payment fraud than the previous year. A study released a year earlier revealed that ensuring protection from fraud could be a stimulus for e-commerce usage. In the United States alone, approximately eight in ten consumers would buy online more often if provided protection against these threats.
