The recent COVID-19-related growth in digital payments has led to a significant rise in fraud attacks for eCommerce merchants. By 2021, eCommerce fraud is forecast to account for $6.4 billion in global merchant losses. This article gives you better insight into the issue, as well as CNP or card-not-present fraud.
Rise in Online Transactions & Payment Fraud
Payment fraud has grown to a great extent because of COVID-19, thus accounting for the rise of a specific trend. Particularly, fraudsters, relying on social engineering, are attacking ACH credits. This is known as a BEC or Business Email Compromise.
The COVID-19-related lockdowns are resulting in increased account takeover attacks using identity spoofing. Besides, there’s a rise in 1st-party chargeback fraud as well. The card cloning fraud rate in industries and regions has risen by 34%, and the sporting goods sales have grown by 13% as compared to the holiday season in 2019. This is according to Feedzai, a data science company fighting financial crime with AI.
According to LexisNexis® Risk Solutions, American and Canadian companies in the finances and lending fields are witnessed increased fraud. This is affecting a wider range of mid/large-size companies such as digital and non-digital.
Dealing With Card-Not-Present Fraud
Fraud and chargebacks are creating serious strains for merchants all around the globe. To tackle fraud, merchants, as a rule, verify transactions. This is being done by asking for an additional authentication step. The thing is that this measure itself comes with certain challenges. Namely, it makes the friction to the payment experience grow.
So, it’s extremely important for you to find a secure and reliable payment services provider to work to avoid chargebacks and fraud, including card-not-present fraud, as successfully as possible. With a professional payment provider, you can enjoy advanced fraud detection techniques and guarantee a seamless payment experience for your customers.
As you see, COVID-19 has resulted in not only health and business issues, but also in fraud and chargeback increase. Since consumers are now more often relying on digital channels for payment processing than before, fraud attacks have risen. Fraudsters are using channels to defraud consumers. So, work with only a reliable merchant services provider to protect your business to the best possible extent.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country that can best help you with card-not-present fraud. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.