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BizReport : Ecommerce : December 24, 2020

Reports: Fraudsters increase purchases as more sales go online

It is no secret that fraudulent purchases are up, but by how much may surprise some. According to new data out from Sift, fraudulent purchases are up about 70% YoY for 2020, with the average fraudulent order attempt topping $700.

by Kristina Knight

"The opportunity for e-commerce merchants this holiday season is great than ever, and
fraudsters have certainly taken advantage by making fraudulent transactions at higher
price points," said Jason Tan, CEO, Sift. "Cybercriminals are well aware that merchants
are setting higher thresholds for blocking transactions, which is a major flaw of rules-
based fraud prevention strategies."

According to Sift's data, the average order amount from April through November of this
year increased by 9% YoY. Researchers further found a 64% increase in holiday
ecommerce values during Black Friday weekend compared to average 2020 orders.
Retailers aren't the only victims; according to Sift there has been a 475% increase in
attempted fraudulent purchases at restaurants.

shifting-ecommerce/">More data from Sift's Q4 2020 Digital Trust & Safety Index can be found here.

Meanwhile, Deloitte's State of the US Consumer report indicates online merchants are
indeed having a good holiday season. Digital spending was up 30% in November (YoY),
which has offset the physical retail decline of 11%. And, while consumers are shopping
less this holiday season, they are spending more per visit. According to the research
while overall visits are down about 6%, shoppers are spending about 7% more in
average order value.

the-us-consumer.html">More Deloitte data can be accessed here

And, don't look for shopping to abruptly end after December 25. According to the href="
saturday">National Retail Federation many consumers say they'll continue 'holiday
shopping' into 2021 (66%) in search of deals (45%) and items they couldn't get before
the holiday. About one-third (27%) say they'll be shopping to spend those holiday gift
cards, and half say they'll be shopping online.

Tags: 2020 ecommerce, Deloitte, ecommerce, ecommerce fraud, ecommerce trends, fraudulent purchases, holiday ecommerce, National Retail Federation, Sift

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