Ecommerce continues to grow each year. Unfortunately, as online shopping grows more popular, fraud escalates right along with it. The worst fears of online retailers has been confirmed with data just released today. According to a new study conducted by PYMNTS.com and Forter, in 2015, the number of attacks by fraudsters was up 163 percent. Discover in this article which merchant segments are mainly targeted by fraudsters and how to arm your eCommerce site to stop online fraud.
Merchant segments that fraudsters find most attractive
In 2015, the number of attacks by fraudsters was up 163 percent. This data is part of the newly released Global Fraud Attack IndexTM – a collaboration between PYMNTS.com and Forter. This quarterly Index benchmarks the rate of fraud attempts on U.S. merchant websites by looking at the types of fraud, the geography of fraud and the merchant segments being attacked.
The goal is to provide a consistent baseline for assessing worldwide trends in payment and commercial eCommerce fraud that is actionable for merchants who are the targets of these fraudsters. The report examined the occurrence of eCommerce fraud in the merchant segments that fraudsters find most attractive: digital goods, luxury goods, food and beverage, clothing, electronics.
Important data points from the Global Fraud Attack Index are:
The biggest driver of overall fraud is Botnet attacks on digital goods, which amount to 75% of all potential fraud losses in the segment
The luxury goods segment is one of the few categories that experienced a rise in the average transaction attack amount, rising by as much at 4%
While location manipulation represents less than 20% of all fraud attacks that originate outside of the U.S. or Europe, it represents more than a third of the potential cost of fraud.
Arm your eCommerce to stop online fraud
When combating online fraud, speed and agility are essential. The ability of most organizations to respond to fraudulent activity was limited by the lack of technical skills and costly solutions. Now, cloud-based solutions have emerged to comply with eCommerce sites and SMB needs.
OZON is a cloud platform that integrate several innovative security technologies working in synergy. OZON detects vulnerabilities and malwares, protects against cyber-attacks and identifies fraudulent transactions. All these functions are performed in real time.
With this cloud-based solution, combining machine learning and big data, each customer has the benefit of an equivalent anti-fraud team, plus automation, full availability, device geolocation and device identity check. This technology is able to identify new fraud techniques in real time with a success rate of about 80%. Try it for free and adopt it!