As online payment fraud becomes an increasing problem for retailers, Forter explains how best to safeguard customer accounts.
Today, the customer journey has become more complicated as consumers engage with brands across numerous touchpoints, both in store and online, for a truly omnichannel experience.
On the whole, the retail sector has made great strides at detecting and preventing payment fraud at the point of purchase. However, the increasingly complex customer journey leaves retailers now vulnerable to fraudulent attacks at earlier points in the process.
A clear trend is emerging as fraudsters shift their efforts, leveraging account-based attacks rather than just targeting at the point of checkout.
“1.5 million individuals whose accounts had been compromised had additional accounts opened in their name – a practice that doubled in the past year”
Fraudsters are having more success in account takeover (ATO) attacks by increasing both the level of sophistication and the methods by which they are able to strike. They are focused on the quality of these attacks and doing as much damage as possible to yield more targeted and lucrative results.
According to Forter’s Fraud Attack Index, 1.5 million individuals whose accounts had already been compromised had additional accounts opened in their name – a practice that has doubled in the past year. Fraudsters then transfer funds to these accounts from their victims’ legitimate accounts.
It is therefore essential that online retailers have an understanding of payment trends and fraud practices in order to better protect themselves.
“As global payments and ecommerce systems shift, online criminals transfer their attention to weaker points”
Forter’s Fraud Attack Index provides retailers with details of shifting behaviours and trends in online attacks across global industries. It also explores the methods by which fraudsters leverage their attacks.
The data in the latest Fraud Attack Index shows that, as global payments and ecommerce systems shift, online criminals transfer their attention to weaker points. So, retailers must be sure to protect all customer touchpoints – from login to coupon and loyalty point redemption, and beyond.
Recent data from the Fraud Attack Index, for example, reveals that the period from Q2 2017-Q2 2018 to the period Q2 2018-Q2 2019 saw:
- An 89% increase in loyalty programme fraud
- A 44% increase in fraud against online apparel and accessories retailers
- A 41% rise in attacks against food and beverage retailers.
To understand more about what these figures mean, and how to protect against fraud, download the Fraud Attack Index here.
Becca Gomby is content marketing manager at Forter
Becca Gomby leads Forter’s content team, authoring many of Forter’s white papers and supporting demand generation efforts as well as product marketing needs.
Prior to joining Forter, Gomby was a risk analyst working in the fintech space. Before her move to Israel, she served as a security and risk expert in government and NGO-contracted security roles, specialising in sub-Saharan Africa and Central Asia.