RSS feed Get our RSS feed

News by Topic

BizReport : Ecommerce archives : May 08, 2018

Report: As ecommerce grows, so does digital fraud

Last year, American shoppers spent just over $450 billion online, an increase of 16% YoY. But, along with that increase in shopping came an increase in ecommerce fraud that is hitting merchants in the wallet. In fact, according to some experts, ecommerce fraud could offset the increase in digital spending for merchants who aren't protected.

by Kristina Knight

According to data from the US Census Bureau, Americans increased their online spending by 16% in 2017, to reach just over $453 billion. This is good news for merchants who continue to see profits from in-store purchases decrease.

"Online retailers have reason to be excited by the latest eCommerce sales figures, but they also need to follow CNP fraud trends to understand the net impact on their bottom line," said Monica Eaton-Cardone, co-founder and Chief Operating Officer of Chargebacks911.

However, all the news isn't great, because during the same time period Experian found that ecommerce fraud increased by 30%. In fact, nearly two-thirds (63%) of merchants say they're experiencing the same or more fraud now as they were a year ago.

Much of that is coming from card-not-present (CNP) fraud; though CNP fraud can happen in stores, it is also prevalent in the ecommerce landscape.

According to reports most merchants are concerned about fraud levels (72%), and most are also denying more transactions (71%) as they try to lessen the impact of fraudulent purchases. Just over 80% of merchants, according to Experian say properly identifying customers would help them lessen the risks of ecommerce fraud.

"Whether it's in our favorite coffee shop or shopping online, being recognized by the people we do business with goes a long way," said Kathleen Peters, Experian senior vice president of Global Fraud and Identity. "Recognition helps to stimulate trust, and trust is what makes all of us feel safe and protected. Trust is the currency of digital commerce. Technology is the enabler that underpins it."

Tags: Chargebacks911, ecommerce, ecommerce fraud, ecommerce trends, Experian, fraud trends, US Census Bureau

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.