As merchants in the travel, services, restaurant and retail industries are already aware – customers are buying. This is evident in the overall spend growth of 6.2% year-over-year and eCommerce expansion by more than 8.4% in 2022. It’s also worth noting that credit spend was up more than 6.5% last year.1
While this growth is certainly good news for your business, it also comes with the increased potential risk of online payment fraud. In fact, Ravelin’s Annual Survey found that 59%2 of merchants experienced an increase in online payment fraud over the last 12 months.
Fraudsters are constantly innovating to stay ahead of the latest fraud mitigation measures. This means you have probably faced a growing threat from one or more common fraud types, including online payment fraud, friendly fraud, account takeovers, promo abuse or refund abuse.
And new fraud schemes are constantly emerging – 56% of businesses reported “Fraud as a service” to be a concern2, highlighting the grim reality that there is an ecosystem of tools available to less-than-scrupulous consumers who want to “game the system” in an attempt to avoid paying you for your goods and services.
Source: 2023 Global Fraud Trends Survey, Ravelin
Reseller and bot activity are also on the rise. Tools are readily available online for fraudsters who wish to use bots to buy things through a service or a proxy, making it difficult for your business to detect fraudulent behavior. It is also possible that you view resellers as an acceptable part of your business, which further complicates the task of reducing risk.
43% of businesses have recently experienced an increase in social engineering attacks aimed at customer service channels.2 This type of attack is often an attempt to get around other fraud detection systems, trying to persuade a customer service representative to grant privileges that a machine learning system would not have granted.
As you introduce new methodologies to combat fraud, fraudsters are constantly trying to stay one step ahead. This arms race is one that will likely persist, leaving you to find ways to protect against fraud without creating disruption to the customer experience.
Fortunately, there are effective fraud mitigation strategies, including risk controls and transaction scoring models, you can employ to strengthen front-line defenses and help gain an edge against fraudsters:
>>>For additional strategies to minimise your fraud losses, click here to watch our informative on-demand webinar with Ravelin hosted by the Merchant Risk Council.
As you face a growing threat from payment fraud, the need to employ an effective fraud mitigation strategy is more important than ever. This highlights the urgency of deploying an integrated solution that protects across multiple payment vectors. Partnering with a payment acquirer who can integrate a range of security measures offers considerable advantages.
Carat from Fiserv provides fraud mitigation as part of the organisation’s global commerce platform, offering access to a selection of proprietary and partner solutions accessible through a single-entry point. This reduces technology costs, while enhancing risk protection and providing a more connected commerce experience for customers. And in today’s increasingly risky commerce environment, doing everything to stay ahead of savvy fraudsters only makes good business sense.
1Source: Fiserv SpendTrend December 2022 (YoY Growth)
2Source: 2023 Global Fraud Trends Survey, Ravelin