Sunday , September 20, 2020

E-Commerce Fraud Losses Increased 7% Across 2016 And 2017, Says Signifyd

E-commerce fraud over a two-year period through the end of 2017 increased 7% across all merchant categories, finds the Ecommerce Fraud Index released Tuesday by fraud-prevention specialist Signifyd Inc.

The index reported the level of total fraud losses increased from 3.8% of sales volume in 2016 to 4.09% in 2017. Among the merchant categories with the largest increases in fraud losses, the rate for the online beauty industry soared 102% to 5.1%. Fraud losses for online department stores increased from 1.47% in 2016 to 2.18% in 2017, a 48% increase, Signifyd said. Fraud losses among consumer electronics merchants increased 47% to 9.65% from 6.62%.

Other indicators in the report found that losses from account-takeover fraud increased 80% in the study period, going from 0.25% to 0.45%. Signifyd defines account takeover fraud as when a criminal logs in as an existing user on a merchant’s site and uses the pre-existing payment options to make purchases, usually shipped to a new address.

The problem is especially growing among online department stores where this type of fraud increased 285%, from 0.06% to 0.23%. It’s problematic, too, for online-jewelry and luxury-watch retailers, where account takeover fraud increased 194%, from 0.42% to 1.24%.

San Jose, Calif.-based Signifyd says it works with more than 5,000 merchants.

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